R/€ = 15.16Change: -0.14
R/$ = 14.29Change: -0.14
Au 1071.65 $/ozChange: -0.40
Pt 852.50 $/ozChange: 7.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
RSS Feed
Article   Comments   Other News   Research   Magazine  
Aug 17, 2012

Profound interest in Moz resources benefits steel construction industry

Construction|Engineering|Expertise|Africa|CoAL|Cosira Group|Gas|Industrial|Mining|PROJECT|Projects|Resources|Sustainable|System|Africa|Europe|China|Mozambique|South Africa|Southern African Institute Of Steel Construc|Energy|Equipment|Local And Foreign Steel Fabricators|Local Steel Fabricator|Oil And Gas|Oil And Gas Sectors|Steel|Steel Construction Industry|Steel Fabricator|Steel Fabricators|Steel Fabricators Industry|Francis Braz|Hennie De Clercq|Infrastructure|Neels Van Niekerk|Tim Tasioulas|Operations|Proximity|Sub-Saharan Africa
Construction|Engineering|Expertise|Africa|CoAL|Gas|Industrial|Mining|PROJECT|Projects|Resources|Sustainable|System|Africa||||Energy|Equipment|Oil And Gas|Steel||Infrastructure||Operations|Proximity|
© Reuse this

Local and foreign steel fabricators are pursuing business potential in sub- Saharan Africa, with many focusing on opportunities in Mozambique, says International Steel Fabricators (ISF) director Neels van Niekerk.

He tells Engineering News that the number of South African and international companies that attended this year’s Mozambique Mining and Energy Conference (MMEC), in April, was significant.

“The MMEC is the premier event that focuses on the Mozambique mining, energy and oil and gas sectors, as well as their sustainable development,” he says. “This year, it attracted a plethora of international investors, mining experts and, of course, steel fabricators, includ- ing many South African companies, whose proven expertise in these areas is sought after.”

Local steel fabricator and construction company Cosira Group is one of the many companies showing interest in opportunities in Mozambique. Cosira Mozambique MD Francis Braz says the company is making significant progress, despite the presence of Chinese companies – Mozambique’s usual partners in infrastructure development.

While China’s trade with Mozambique has reportedly increased by 800% over the last decade, Braz states that Cosira delivered more than 10 000 t of steel to the Moatize coal project, in Mozambique, in 2011 alone.

Braz credits the ISF with the company’s success in Mozambique, as the industry body helped to establish opportunities for Cosira and other South African companies, not only in Mozambique but also worldwide.

Specialist steel fabricator Tass Engineering MD Tim Tasioulas agrees, saying that the ISF’s contribution has been significant, attributing its success in the South African steel fabricators industry to good networking.

“This has been especially helpful in Mozambique, where [Tass Engineering] benefited from the MMEC – facilitated by the ISF – by meeting a host of potential clients,” he says, adding that he is impressed by potential opportunities in Mozambique. Further, he notes that Tass Engineering is pursuing some interesting business leads in the country.

A Secure Investment
Southern African Institute of Steel Construc- tion (Saisc) executive director Dr Hennie de Clercq believes that establishing business in Mozambique is a more secure investment for companies in Southern Africa than for international companies, partly owing to geographical proximity.

“[South Africa] has a long tradition of doing work in Mozambique. We have a better under- standing of the country’s legal system, and relationships are more clear cut,” he says.

De Clercq cites the newly discovered abundance of coking coal and other resources as the sources of investment interest in the Southern Africa country. He points out that the subsequent need to build infrastructure around these resource sites is one of the major attractions for the steel construction industry.

“It must be understood, however, that structural steel is just an element [of infrastructure]. As a steel industry, we have an even greater interest in industrial development than in infrastructural development – not that there isn’t a significant interest there as well,” he notes.

De Clercq adds that the current infrastructure in Mozambique is quite weak, and until it has been developed and the capacity has been increased, inadequate infrastructure will hamper the development of mining operations in the country.

This bodes well for the steel construction industry because initial construction has to take place before mining projects can be developed.

De Clercq points out, however, that steel construction is not the only industry with an interest in Mozambique, or any other country in sub-Saharan Africa.

The economic downturn and subsequent slowdown have forced European companies to consider opportunities outside Europe, with Africa designated as the target area, he says.

“Thanks to subsidies from home, these companies tend to come into the market quite competitively and then, of course, there is China.”

Owing to this increased competition, De Clercq emphasises the necessity of simply being present in Mozambique and the importance of increasing competitiveness through active marketing.

He also highlights the importance of encouraging South African civil engineering companies to establish a greater presence in the rest of Africa and to be more dynamic.

“If this happens, the steel construction industry, including capital equipment suppliers, among others, can come into those projects on the coat tails of the civil engineering contractors,” he says.

Endorsing Exports
One of the many challenges facing the South African steel construction industry is that the combined capacity of the industry exceeds current demand.

De Clercq highlights the industry boom in 2007 and 2008, when there was a tremendous demand for steel construction and the industry was fully occupied.

“Since then, demand has shrunk signifi- cantly because of the global and local economic slowdown, and the industry’s capacity is not even nearly fully used,” he says.

“Even under normal conditions, our industry needs to expand its markets and exports constitute the obvious opportunity. Exporting fabricated steelwork is a strategic imperative for the industry.

“Our industry needs to be active in exports on a consistent basis and certainly not just during those times when local demand is down.”

Van Niekerk agrees and says that the African situation is enticing for South African exporters. “New coal mining opportunities in countries like Mozambique are booming and the discovery, as well as capacity confirmation of new offshore gasfields around all the other Southern African countries, signal the start of a great new Southern African industry.”

Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
Other Construction News
Updated 3 hours ago  Rail group Alstom announced on Thursday that it had signed an agreement to purchase 51% of South African rail company Commuter Transport & Locomotive Engineering (CTLE), for an undisclosed amount. CTLE, specialising in the modernisation of trains, was previously...
Updated 5 hours ago Embattled construction firms, which lost 38% of their aggregate market capitalisation in 2015, are facing more hard times, a survey showed on Thursday. The latest PwC study on the construction industry has shown that the sector is taking strain as it battles lower...
Latest News
Updated 2 hours 45 minutes ago Business confidence has dropped by a full 15 points over the past year to reach its lowest level in five years, the latest Rand Merchant Bank (RMB)/Bureau for Economic Research (BER) Business Confidence Index (BCI) has shown. After falling from 43 to 38 in the third...
Updated 2 hours 51 minutes ago JSE-listed beverage, food and nonperishable packaging manufacturer Nampak’s basic earnings a share rose 3% to 228.3c for the year ended September 30, from 221.7c the year before. The company also reported an increase in group revenue and trading profit of 13%, to...
Updated 3 hours ago As Parliament mulls the new regulatory framework to govern South Africa’s financial industry, the sector is preparing for its promulgation; however, it will require a complete “rethink” of the way regulators guide financial institutions. The tabling of the Financial...
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
Additive manufacturing, better known as 3D printing, has the potential to completely change the relationships between individual consumers, professional designers and manufacturers. So argued Loughborough University Reader in Computer Aided Product Design Dr Ian...
Airbus Defence and Space: Military Aircraft has highlighted that its A330 Multirole Tanker Transport (MRTT) has significant commonalities with the Airbus A330-200 commercial airliner, upon which it is based. The South African Air Force (SAAF) once operated a fleet of...
Financial services provider Nedbank launched the second edition of its Carbon Footprinting Guide earlier this month, which is aimed at demystifying carbon footprint approaches and help readers grasp the main concepts of carbon measuring, monitoring, reporting and...
This year marks the thirtieth anniversary of Caterpillar’s first backhoe loader. This also coincides with the worldwide release of its latest-generation F2 series backhoe loader, which was launched at supply chain services company Barloworld Logistics’ Big Dig Day in...
BARRY DWOLATZKY The CPD programme provides advanced skills required locally, and provides a stepping stone to Wits University’s Master of Engineering degree in software engineering
A shortage of software engineers is leading to fewer information technology (IT) projects in private and public sector organisations. This also places a dampener on the economy, as IT is an integral part of business and civil service, says University of Witwatersrand...
Alert Close
Embed Code Close
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96