http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.34Change: -0.03
R/$ = 10.71Change: -0.03
Au 1283.65 $/ozChange: 1.40
Pt 1464.50 $/ozChange: 3.50
 
 
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  
 
 
Jul 15, 2005

Significant growth for local steel fabricator

Back
Construction|DURBAN|Natal|Africa|Components|Cosira Group|Paper|Petrochemicals|PROJECT|Projects|Safety|System|Welding|Africa|Poland|South Africa|Sapref Plant|Compliant Structural Steel Fabricator|Consolidated Construction Solutions Group|Equipment|Mining|Petrochemicals|Power Generation|Power-generation|Steel|Steel Fabrication Industry|Steel FabricationnIndustry|Steel Fabricator|Steel Fabricators|Structural Steel Fabri|Fabrication|Infrastructure|John Da Silva|Power|CAD|Corrosion Protection
Construction||Africa|Components|Paper|Petrochemicals|PROJECT|Projects|Safety|System|Welding|Africa|||Equipment|Mining|Petrochemicals|Power Generation|Power-generation|Steel||Fabrication|Infrastructure|Power|
construction|durban|natal|africa-company|components|cosira-group|paper-company|petrochemicals-company|project|projects|safety|system|welding|africa|poland|south-africa|sapref-plant|compliant-structural-steel-fabricator|consolidated-construction-solutions-group|equipment|mining|petrochemicals|power-generation|power-generation-industry-term|steel|steel-fabrication-industry|steel-fabricationnindustry|steel-fabricator|steel-fabricators|structural-steel-fabri|fabrication|infrastructure|john-da-silva|power|cad-technology|corrosion-protection
© Reuse this South Africa’s largest private ly-owned and black economic- empowerment (BEE)-compliant structural steel fabricator, the Cosira Group, is experiencing significant growth and expansion as a result of increased expenditure in the petrochemical and power generation sectors.

The success of the company in being able to gain a foothold in these sectors can be found in the history and nature of the business, as well as the experience gained in the steel fabrication industry over the last few years.

Cosira has grown from a small family-owned company into a consolidated construction solutions group that offers all disciplines, including structural steel fabri- cation, supply and erection of the steelwork and mechanical and pipework components.

Similarly, through the years, the company has established an exemplary safety record, which has further enhanced its reputation in the industry. In fact, it was this exemplary safety record that paved the way for Cosira’s first foray into the petrochemical industry last year.

Petrochemicals
Following Sasol’s Project Turbo, all South African petrochemical companies have increased their expen- diture to end the production of leaded fuel by 2012.

As a result, there has been a surge in activity in this industry, which has led to more work for steel fabricators and construction companies.

Cosira is one steel fabricator that is particularly benefiting from the increased demands for the refurbishment of plants and construction of new plants around the country.

Last year, the company secured two separate contracts, one for Sasol, in Secunda, and the other for Sapref, in Durban. In the first of these, the Sasol Turbo Offsite Project in Secunda, Cosira was awarded the contract to do the detailing, fabrication and onsite erection of 1 400 t of steel on the Offsites and Outside Battery Limits (OBL) portions of the Sasol Project Turbo, which is sche- duled for completion this year.

The OBLs and infrastructure section of the Sasol Project Turbo provide the support to the inside battery limit (IBL) units, which are required to achieve the necessary processing and upgrading of the low-value feedstocks to support the changes in fuel specifications.

Much of this work involves piping, both for process interconnectivity and for utilities.

“Detailing for the project was done using state-of-the-art software including the X-steel computer-aided design (CAD) system,” explains Cosira’s MD John da Silva.

In the second petrochemical contract that the company was awarded, Cosira was commissioned to do all minor design work, detailing, procurement, fabrication, corrosion protection, supply, transportation and erection of all the structural steelwork at the Sapref plant in Durban.

Cosira began work on the project in October 2004 and completed the erection of the 903 t of structural steelwork in May this year.

“The contract included work in both the OBL and IBL sectors at Sapref in Durban with the four separate areas in the OBL already completed and more than 50% of the 14 separate areas in the IBL sector completed,” elaborates Da Silva.

“Most of the contract comprised medium to heavy steel support structures, which were fabricated from mild steel and hot-dip galvanised, for access ways to the isomeration unit’s distillation columns, pipework and high-pressure vessels.

“Out of 40 000 items only three had to be reworked, which is a significant benchmark for a structural steel fabricator.” The most interesting aspect of the project was that the design for the Sapref plant was undertaken in Poland, with electronic design data being sent directly to the detailing division at Cosira.

Receiving both hard copies and electronic data of the drawings in the form of structural detailing neutral files has meant that the drop-down 2D or workshop detail drawings were available faster than would have normally been the case. Both projects proved to be very successful for the company and were completed on time and within budget.

“Since the completion of the project, we have received accreditation from Sasol and are currently undergoing accreditation by Sapref,” says Da Silva. “The company’s intention is to expand into this sector of the market, especially with the accreditation, and will actively pursue projects within this sector.

“To a certain extent, this decision has also prompted the company to establish a representative office in Kwazulu-Natal because of the increased work within the petrochemical sector and because there is enormous scope in this region in the paper-and-pulp and sugar industries.” The company anticipates the open- ing of its new representative office during the last quarter of this year.

Mining
Within the mining sector, Cosira was recently awarded the contract to supply the fabricated steel for the furnace building for the prestigious Xstrata Lion Ferrochrome Project, in Steelpoort, Mpumalanga.

Civil construction of the furnace got under way in February this year, with the bulk of the construction work expected to take place during the last quarter of this year.

“Steelwork for the construction of the plant has amounted to some 4 000 t of structural steel to date,” says Da Silva.

The ferrochrome furnace building is about 175 m long and features various crane girders running the length of the building. The crane girders are manufactured using submerged-arc welding processes by Cosira, and, in some instances, are up to two metres in depth.

Transmission towers
Cosira has opened a new division in the company to cater for the current expansion in power generation and the construction of transmission towers.

“With all the infrastructural deve-lopment required both in South Africa and Africa, we have decided to establish Cosira Towers,” explains da Silva.

“This division will fabricate cellular towers for the African market and transmission towers for the South African market, and we think that the company is well-poised to handle the anticipated volumes.

Challenges
Cosira believes that the cost of labour in South Africa is a big issue in the manufacturing industry.

“This is one of the reasons why the company is investing a lot of money in capital equipment to maxi-mise turnover with the current staff complement,” says Da Silva.

“We need to be able to increase productivity and this is a good way to achieve this without compromising our critical mass.” The price of raw materials is also of concern.

“The fact that there is no stability within the industry when it comes to steel prices and we have to deal with short lead times for price increases is an issue,” contends Da Silva.

“Some of our contracts happen over extended periods and our prices have to be fixed despite fluctu- ations in the steel price.

“If we can stabilise the supply and price of steel, then the structural steel industry will see growth, and contractors will stop looking for alternatives to using steel in large structures,” concludes Da Silva.

Edited by: Jade Davenport
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Telecoms News
Zunaid Bulbulia
Telecommunications giant MTN South Africa CEO Zunaid Bulbulia has been appointed group chief operating executive, effective immediately, the company announced on Thursday. Former MTN Nigeria CEO Ahmad Farroukh would take up the role of CEO of MTN South Africa.
The disciplinary hearing of telecommunications giant Telkom’s suspended CFO Jacques Schindehütte was set to resume next Wednesday. Telkom said it hoped the hearing would result in a definitive resolution on the matter of Schindehütte’s personal conduct after a...
IT technician Mansour Diagne is one of the lucky few in Senegal to have a bank account, but when he needs to pay some bills or transfer cash to his sisters on the other side of the crowded capital Dakar, he reaches for his mobile phone. Fewer than 20% of adults in...
More
 
 
Latest News
Independent, black-owned and managed investment holding company Southern Palace Properties has acquired an 8% stake in Growthpoint Properties from the Public Investment Corporation’s (PIC’s) Government Employees Pension Fund (GEPF) for R4.5-billion. Standard Bank...
Shareholders of JSE-listed real estate investment trusts (REITs) Octodec and Premium Properties have approved the proposed merger of the two companies, creating a combined property fund that will attract a market capitalisation in excess of R5-billion and comprise...
The Metal and Engineering Industries Bargaining Council (MEIBC) this week called on employees and employers to exercise restraint as the metals and engineering industries resumed operations following a four-week strike, stating that it regretted the strike’s...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
 
 
 
 
 
This Week's Magazine
Updated 5 hours ago South African construction company Group Five says work on the rehabilitation of the 800 km stretch of the Plumtree–Mutare highway, in Zimbabwe, should be completed by the end of this year. Giving evidence before the Parliamentary Porfolio Committee on Transport...
SINGLE EXPERIMENT An artist’s impression of OCO-2 in orbit
Updated 5 hours ago The Space Operations division of the South African National Space Agency (Sansa) revealed on July 17 that it had supported the successful launch of the US National Aeronautics and Space Administration’s Orbiting Carbon Observatory-2 (OCO-2) satellite on July 2. The...
RICE TAG The real costs of operating Rea Vaya have become clear
Updated 5 hours ago Phase 1A of Johannesburg’s Rea Vaya bus rapid transit (BRT) system should carry around 42 000 people a day, while it was been expected that Phase 1B, rolled out last year, would add another 60 000 daily passengers. However, the entire system is currently carrying...
Updated 5 hours ago A stormwater project in Bedforview, east of Johannesburg, has stalled for eight months after project managers in the Ekurhuleni municipality resigned and municipal managers were placed on special leave without designating replacements. Construction to reinforce the...
Updated 5 hours ago The design of the Beit Bridge border post is the biggest impediment to efficient freight movement between Zimbabwe and South Africa, says Cross-border Road Transport Agency CEO Sipho Khumalo. Beit Bridge is the busiest border post in Africa. A research study on 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