http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.23Change: 0.14
R/$ = 11.58Change: 0.07
Au 1198.65 $/ozChange: 4.19
Pt 1201.50 $/ozChange: 4.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 17, 2012

Profound interest in Moz resources benefits steel construction industry

Back
Construction|Engineering|Expertise|Africa|CoAL|Cosira Group|Industrial|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|Mining|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|Industrial|PROJECT|Projects|Resources|Sustainable|System|Africa||||Energy|Equipment|Mining|Oil And Gas|Steel||Infrastructure||Operations|Proximity|
construction|engineering|expertise|africa-company|coal|cosira-group|industrial|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|mining|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|subsaharan-africa
© 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
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Construction Materials News
The battle for the assets cement firms Lafarge and Holcim must sell to get the go-ahead for their merger will likely be between three groups, several people familiar with the matter said. The three groups expected to hand in binding bids by a mid-January deadline...
Construction resources and aggregates company Lafarge Ash Resources aims to have fly ash exempted from the National Waste Management Amendment Bill’s classification as hazardous waste. This exemption will improve the sustainability of construction materials and...
VALVES Importing companies account for about 80% of the jobs in the valves industry
Local valve importer CMO Africa says the government regulation, which stipulates that 70% of valves used in State projects be manufactured in-country, will lead to the demise of the valves import industry. CMO Africa MD Mark Bowden told Engineering News at the Mining...
More
 
 
Latest News
Updated 6 hours ago China appears to have been routinely underestimating output from its sprawling steel sector, with official figures for last year alone 40-million tonnes below a key industry estimate - an amount equivalent to Germany's entire annual production. Beijing has vowed to...
Lumwana, Zambia
Canada’s Barrick Gold Corp will suspend operations at its Lumwana copper mine, in Zambia’s Northwestern province, after the country enacted legislation that raised the royalty rate on openpit mining operations from 6% to 20%. TSX- and NYSE-listed Barrick, the world’s...
The Labour Court in Johannesburg has set aside the 2011-2014 metal sector wage agreement, the National Employers' Association of SA (Neasa) said on Thursday. The 2011-2014 wage deal was the result of an agreement between the Steel and Engineering Industries...
More
 
 
Recent Research Reports
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.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 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 network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
 
 
 
 
 
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
TO BE PHASED INTO SERVICE The first MeerKAT dish, with another 63 to come
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
MATT BARKER Wireless networks should enable users to engage and must provide relevant information to them based on their activity and location
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
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
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks