R/€ = 13.12
R/$ = 11.96
Au 1204.26 $/oz
Pt 1146.50 $/oz
Jan 30, 2008
Podcast - January 30, 2008Back
Engineering|Africa|Building|Defence|Eskom|Industrial|Lighting|Materials Handling|Petrochemicals|PROJECT|Pumps|Systems|Africa|Energy|Logistics|Materials Handling|Petrochemicals|Steel|Systems|Power|Operations
© Reuse this From Engineering News in Johannesburg, I am Matthew Hill
In our lead story this week:
South Africa has unveiled plans to cut the country’s electricity consumption by 10% over the next six months, in an attempt to deal with the prevailing power crisis.
This new plan comes as industry and mines took a hammering this week, when Eskom could not guarantee uninterrupted supply, forcing many companies to suspend operations.
The programme will initially centre on load shedding and preemptive load curtailment, but will later introduce power rationing.
This latest plan will run in conjunction with government’s electricity conservation programme, which hopes to save 3 500 MW through interventions such as solar power, efficient lighting, metering and fuel switching.
But despite the electricity situation being declared a “national emergency” and making international news headlines, the government insists that power constraints are not deterring investment.
Public Enterprises Minister Alec Erwin:
The country’s power crisis is also taking its toll on the steel industry, with one of the country’s largest producer warning that it cannot meet its clients’ demands.
ArcelorMittal South Africa CEO Rick Reato says the company’s output will take a knock of 300 000 t if the electricity supply problems continue for two more weeks.
A Johannesburg-based analyst describes the situation as disappointing and says the company may have to reconsider its expansion plans. He also says that fears of a short-term steel shortage are indeed warranted.
Petrochemicals giant Sasol has resumed normal production capacity at its plants producing transportation fuels to the inland region, laying to rest concerns that country’s pumps may run dry.
But while a short-term shortage may not be an immediate threat, experts warn that a huge liquid fuels shortage is looming as a result of the country’s economy growth patterns.
Independent power producer Ipsa has signed a deal with the Central Energy Fund for a key role to the integrated energy project being developed at the Coega Industrial Development Zone in the Eastern Cape.
Under the agreement, Ipsa will install a 521-MW open-cycle gas turbine plant and will look at building four more plants with the same capacity.
Also in this week’s Engineering News Online:
Global defence group BAE Systems will transfer the development and production of the new Pinzgauer military vehicles to the group’s Benoni site.
Cement producer PPC says growth in regional cement demand will cool this year, following double-digit rates for a number of years.
Global steel output reached a new record in 2007, growing to 1,34-billion tons. This is an increase of 7,5% from 2006 and the fifth consecutive year that steel production grew by more than 7%.
And in this week’s Engineering News magazine, out on Friday, read our cover story Africa’s presence in space.
We also have in-depth coverage of South Africa’s current power instability deepening into an economic crisis and some of the short-term measures that can be put in place to help both reduce demand and increase supply.
Finally, don’t miss our features on materials handling & logistics and gas.
That’s a round up of this week’s stories on Creamer Media’s Engineering News. For more on these and other stories, visit engineeringnews.co.za
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Other Intellectual Property Law News
Pedestrian Door Solutions specialists, ASSA ABLOY Entrance Systems South Africa (Pty) Ltd., have supplied and installed a number of Besam entrance systems to medical facilities both in South Africa and outside the country’s borders that offer fast, convenient and...
Rubber-in-compression couplings, from Renold Hi-Tec, provide fail-safe operation on applications such as mine winders, hoists, draw-works on drilling rigs and industrial overhead cranes. The intrinsically fail-safe construction of the couplings protects both people...
Engineering, management and specialist technical services company Aurecon achieved a first in Tshwane in 2011 when its Lynnwood Bridge Office Park building, situated just off of the N1 highway, achieved a 4 star GreenStar SA – [Office Design v1, Office Design v1]...
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
This Week's Magazine
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...