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casting metals industry south africa

The Casting of Metals Industry in South Africa 2022

Alex Conradie | South Africa | 24 November 2022

The Casting of Metals Industry in South Africa 2018

Marc Bosman | South Africa | 25 April 2018

The Casting of Metals Industry in South Africa 2015

Marc Bosman | South Africa | 13 November 2015

The Casting of Metals Industry in South Africa 2014

Alex Conradie | South Africa | 22 October 2014

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Report Coverage

This report is on the casting of metals in South Africa, which produces finished and semi-finished products of cast iron and steel (ferrous metals) and cast non-ferrous metals. It includes information on the state and size of the sector, influencing factors, trade statistics and developments and information on notable players/ There are profiles of 26 companies in the industry, which include those of listed companies ArcelorMittal South Africa and Hudaco Industries, as well as players such as Atlantis Foundries, Cast Products South Africa, MIS Engineering and Pressure Die Castings.

Introduction

• The metal casting industry has been contracting over the last two year due to poor economic growth, high input costs, inconsistent supply of electricity and high levels of imports.
• The value of metal castings exports declined in 2021 and employment in the industry has decreased.
• There is potential for increased demand for the industry’s products from end users like the mining, automotive and energy industries.

Strengths

• Input materials are available in South Africa.
• Various diverse end user industries.

Weaknesses

• Energy-intensive production processes mean producers are vulnerable to high electricity costs and loadshedding.
• Machinery has to be imported.
• Shortage of skilled employees.

Opportunities

• Increased demand from end users like the mining, automotive and energy industries.
• Increasing exports due to growth in African end user industries, and the African Continental Free Trade Area agreement.
• Reducing production costs and time by using 3D printers.

Threats

• High levels of imports.
• Inconsistent supply of electricity.
• Increasing costs of electricity, water, raw materials and labour.
• Large customers might produce their own components using 3D printing.
• Poor economic growth affects demand for products.

Outlook

• The global metal casting industry’s revenue is expected to increase, largely due to higher demand from the automotive, building and construction, and mining industries.
• The African Continental Free Trade Area agreement should provide opportunities to South African foundries to increase their exports to other countries on the continent.
• The local automotive manufacturing and mining industries should continue to be large end users of the industry’s products.

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The Casting of Metals Industry in South Africa
The Casting of Metals Industry in South Africa 2022

Full Report

R 9 500.00(ZAR) estimated $522.91 (USD)*

Industry Landscape

R 6 650.00(ZAR) estimated $ 366.04 (USD)*

Historical Reports

The Casting of Metals Industry in South Africa 2018-04-25

R 1 900.00(ZAR) estimated $104.58 (USD)*

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The Casting of Metals Industry in South Africa 2015-11-13

R 1 900.00(ZAR) estimated $104.58 (USD)*

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The Casting of Metals Industry in South Africa 2014-10-22

R 1 900.00(ZAR) estimated $104.58 (USD)*

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 2
2.3. Size of the Industry 4
3. LOCAL 4
3.1. State of the Industry 4
3.2. Key Trends 5
3.3. Key Issues 5
3.4. Notable Players 5
3.5. Trade 10
3.6. Corporate Actions 12
3.7. Regulations 13
3.8. Enterprise Development and Social Economic Development 15
4. AFRICA 15
5. INTERNATIONAL 20
6. INFLUENCING FACTORS 24
6.1. Economic Environment 24
6.2. Inconsistent Supply of Electricity 25
6.3. Input Costs 26
6.4. High Levels of Imports 27
6.5. Technology, R&D and Innovation 28
6.6. Environmental Issues 30
6.7. Unforeseen Events 31
6.8. Labour 31
6.9. Government Support 32
7. COMPETITIVE ENVIRONMENT 34
7.1. Competition 34
7.2. Ownership Structure of the Industry 34
7.3. Barriers to Entry 34
8. SWOT ANALYSIS 35
9. OUTLOOK 35
10. INDUSTRY ASSOCIATIONS 36
11. REFERENCES 36
11.1. Publications 36
11.2. Websites 36
APPENDIX 1 38
Summary of Notable Players 38
COMPANY PROFILES 42
Akhani 3D (Pty) Ltd 42
ArcelorMittal South Africa Ltd 43
Atlantis Foundries (Pty) Ltd 48
Autocast South Africa (Pty) Ltd 50
Cast Products South Africa (Pty) Ltd 53
Ceracast (Pty) Ltd 55
Copalcor (Pty) Ltd 56
Elmacast (Pty) Ltd 59
Hudaco Trading (Pty) Ltd 60
Kimberley Engineering Works (Pty) Ltd 66
M I S Engineering (Pty) Ltd 68
Natal Iron and Brass Foundry CC 70
Non-Ferrous Metal Works (S A) (Pty) Ltd 72
Pressure Die Castings (Pty) Ltd 74
Prevail Engineering (Pty) Ltd 76
Rely Precision Castings (Pty) Ltd 78
Rustenburg Engineering and Foundry (Pty) Ltd 80
South African Roll Company (Pty) Ltd 82
Steloy Foundries (Pty) Ltd 84
Thomas Foundry (Pty) Ltd 85
Thos Begbie and Company (Pty) Ltd 87
Transnet SOC Ltd 88
Vereeniging Foundries (Pty) Ltd 93
Viking Foundry (Pty) Ltd 94
Wahl Industries CC 96
Weir Minerals Africa (Pty) Ltd 99

Report Coverage

The report on the Metal Casting sector examines current conditions and discusses the government interventions aimed at stimulating local manufacture. Factors negatively affecting the success of the sector, which include rapidly rising electricity and raw material costs, high labour costs and the increasing cost of environmental compliance are also covered. Profiles for 21 industry players are provided. Included is Scaw South Africa whose cast products division will be transferred to Cast Products SA which was acquired by US-based manufacturer, Amsted Rail Company in March 2018.

Introduction

The casting industry is an important sector in the manufacturing value chain, as more than 80% of manufactured products used by a variety of different sectors of the economy contain castings. The metals industry is in deep distress and longstanding issues such as government intervention in pricing and trade measures remain divisive. Accordingly, the metals industry continues to contract. New technologies and environmental regulations threaten and yet present opportunities while investment is absolutely essential yet limited. The latest statistics from the South African Institute of Foundrymen (SAIF) show that the number of operational foundry member numbers declined from 450 in the 1980s to 170 in 2015, with one new global market entrant, ACO Casting Services South Africa in that year.

Strengths

• Focused industry bodies.
• Foundries have benefited from Government interventions and significant investments have been made in leading edge technology.
• High level of technical and production expertise.
• Research and development capability
• Strong public-private partnerships.
• Tier 1 foundries in the automotive supply chain are qualified to international automotive standards.

Weaknesses

• Competitive disadvantage relative to BRIC partners in terms of current raw material, energy and labour costs.
• Lack of necessary skills.
• Volumes too low to be competitive and are shrinking.

Opportunities

• Capital Investment assistance from government.
• Government assistance in the automotive industry.
• Industry 4.0 and Additive Manufacturing /3D Printing.
• Localisation and designation policies.
• Ongoing investment by OEM automotive assemblers.
• Spare production capacity is available and demand from Africa is likely.

Threats

• Asian imports.
• Cost of environmental legislation compliance.
• Economic climate.
• Falling too far behind on the technology curve.
• Lack of availability and increasing cost of scrap metal.
• Rising input costs.
• Volatility of the Rand.

Outlook

Consolidation within the sector is expected to continue as a result of global pressures and the increasing need for upgrades to ageing infrastructure. Investment in new technology is essential if companies are to compete with new 3D printing operations used by original equipment manufacturers (OEMs) and other new entrants in rapid prototyping and component casting. Although insufficient sales volumes, BEE and environmental requirements and a shortage of critical industry skills will have an effect on all industry players, stakeholders believe there will be an increase in the demand for aluminium-based components in the automotive sector.

Read More..
The Casting of Metals Industry in South Africa
The Casting of Metals Industry in South Africa 2018

Full Report

R 1 900.00(ZAR) estimated $104.58 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.21 (USD)*

Historical Reports

The Casting of Metals Industry in South Africa 2022-11-24

R 9 500.00(ZAR) estimated $522.91 (USD)*

View Report Add to Cart

The Casting of Metals Industry in South Africa 2015-11-13

R 1 900.00(ZAR) estimated $104.58 (USD)*

View Report Add to Cart

The Casting of Metals Industry in South Africa 2014-10-22

R 1 900.00(ZAR) estimated $104.58 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 9
4.1. Local 9
4.1.1. Corporate Actions 12
4.1.2. Regulations 13
4.1.3. Enterprise Development and Social Economic Development 15
4.2. Continental 17
4.3. International 17
5. INFLUENCING FACTORS 19
5.1. Economic Environment 19
5.2. Government Initiatives 20
5.3. Automotive Industry 21
5.4. Rising Operating Costs 22
5.5. Technology, Research and Development (R&D) and Innovation 23
5.6. Labour 26
5.7. Cyclicality 29
5.8. Environmental Concerns 30
6. COMPETITION 30
6.1. Barriers to Entry 32
7. SWOT ANALYSIS 33
8. OUTLOOK 34
9. INDUSTRY ASSOCIATIONS 34
10. REFERENCES 36
10.1. Publications 36
10.2. Websites 37
COMPANY PROFILES 40
AJAX MANUFACTURING (PTY) LTD 40
ARCELORMITTAL SOUTH AFRICA LTD 42
ATLANTIS FOUNDRIES (PTY) LTD 46
AUTOCAST SOUTH AFRICA (PTY) LTD 49
BESAANS (PTY) LTD 52
COPALCOR (PTY) LTD 54
FOXTEC-IKHWEZI (PTY) LTD 57
KIMBERLEY ENGINEERING WORKS FOUNDRIES (PTY) LTD 59
KPL DIE CASTING (PTY) LTD 61
M I S ENGINEERING (PTY) LTD 63
NATAL IRON AND BRASS FOUNDRY CC 65
NON-FERROUS METAL WORKS (S A) (PTY) LTD 67
PANDROL S A (PTY) LTD 70
PRESSURE DIE CASTINGS (PTY) LTD 72
PREVAIL ENGINEERING (PTY) LTD 74
RELY PRECISION CASTINGS (PTY) LTD 76
SCAW SOUTH AFRICA (PTY) LTD 78
TRANSNET SOC LTD 82
WAHL INDUSTRIES CC 86
ZEALOUS AUTOMOTIVE (PTY) LTD 88
ZEALOUS PRESSURE CASTINGS (PTY) LTD 90

Report Coverage

The report on the Metal Casting sector discusses the latest developments in the industry and the range of government interventions aimed at stimulating local manufacture. The report also profiles 32 industry players, including Autocast South Africa (Pty) Ltd based in the Eastern Cape, which casts both ferrous and non-ferrous metals at four manufacturing plants and employs 500 people, and Western Cape-based Atlantis Foundries (Pty) Ltd, which employs 1,169 workers and produces 69,000 tonnes of ferrous castings annually.

Introduction

This report focuses on the casting of metal, which occurs in a foundry and is a process in which molten or liquid metal is poured into a mould made of sand, metal or ceramic. The casting industry is an important sector in the manufacturing value chain, as more than 80% of manufactured products used by a variety of different sectors of the economy contain castings. However, the industry has been in decline for a lengthy period, with the number of operational foundries decreasing from 450 in the 1980s to the current figure of 170. Annual production has also declined by approximately 26% since 2003 due in part to the increasing input cost of raw materials, particularly scrap metal, and a lack of competitiveness in a global market where over-capacity is a problem.

Strengths

• Foundries have benefited from Government interventions and significant investments have been made in state-of-the-art equipment.
• High level of technical and production expertise.
• Tier 1 foundries in the Automotive supply chain are qualified to international automotive standards.

Weaknesses

• Competitive disadvantage relative to BRIC partners in terms of current raw material, energy and labour costs.
• Lack of necessary skills.
• Volumes too low to be competitive and are shrinking.

Opportunities

• Capital Investment assistance from government.
• Continuing growth and Government assistance in the automotive industry.
• Localisation and designation policies.
• Spare production capacity is available and demand from Africa is likely.

Threats

• Cost of compliance with environmental legislation
• Economic recession.
• Lack of availability and increasing cost of scrap metal.
• Rising energy cost and erratic energy supply.
• Volatility of the Rand.

Outlook

Industry bodies and analysts concur that the need to be globally competitive requires continuous capital investment in new equipment and technology. Further consolidation of smaller companies is possible given the state of the global and local economies as well as that of the industry itself. While the steel sector remains in defensive mode against the Chinese onslaught there is a much more positive outlook for the aluminium sector and any positive impact on demand is more likely to benefit the aluminium sector. The demand for iron and steel products in South Africa is growing, while demand from the rest of Africa is expected to increase in the medium to long-term, driven by investment in infrastructure, energy, mining and construction, thus creating potential for the development of the sector. South Africa’s casting industry needs to adopt the latest technologies to improve efficiency, decrease the impact on the environment and develop new opportunities to create diversity and meet market demands. Much assistance will continue to be provided to the metal casting industry through initiatives implemented by the NFTN, from skills development and productivity improvement to energy efficiency and quality enhancement, all underpinned by government programmes and initiatives to drive manufacturing growth. All are expected to make a significant contribution to the industry’s future well-being. SEIFSA has indicated, “For recovery to commence in the sector, export markets need to recover and domestic demand from mining, the automotive sector and construction has to resume. Far more important, however, is the need for South African manufacturing in general and the metals and engineering and related sectors in particular to be much more efficient in their production processes in order to be competitive internationally”.

Read More..
The Casting of Metals Industry in South Africa
The Casting of Metals Industry in South Africa 2015

Full Report

R 1 900.00(ZAR) estimated $104.58 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.21 (USD)*

Historical Reports

The Casting of Metals Industry in South Africa 2022-11-24

R 9 500.00(ZAR) estimated $522.91 (USD)*

View Report Add to Cart

The Casting of Metals Industry in South Africa 2018-04-25

R 1 900.00(ZAR) estimated $104.58 (USD)*

View Report Add to Cart

The Casting of Metals Industry in South Africa 2014-10-22

R 1 900.00(ZAR) estimated $104.58 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 8
4.1. Local 8
4.1.1. Corporate Activity 10
4.1.2. Regulations 11
4.1.3. Enterprise Development and Social Economic Development 12
4.2. Continental 13
4.3. International 15
5. INFLUENCING FACTORS 15
5.1. Government Intervention 15
5.2. Economic Environment 18
5.3. Rising Input Costs 18
5.4. Labour 19
5.5. Technology 21
5.6. Research and Development (R&D) 21
5.7. Innovation 22
5.8. Information Technology 23
5.9. Cyclicality 23
5.10. Environmental Concerns 24
6. COMPETITION 25
6.1. Barriers to Entry 26
7. SWOT ANALYSIS 27
8. OUTLOOK 27
9. INDUSTRY ASSOCIATIONS 28
10. REFERENCES 29
10.1. Publications 29
10.2. Websites 31
COMPANY PROFILES 32
ACTOM (PTY) LTD 32
AJAX MANUFACTURING COMPANY (PTY) LTD 40
ALLIED PRODUCTION INDUSTRIES (PTY) LTD 42
ARCELORMITTAL SOUTH AFRICA LTD 44
ATLANTIS FOUNDRIES (PTY) LTD 51
AUTOCAST SOUTH AFRICA (PTY) LTD 54
COPALCOR (PTY) LTD 56
DORBYL LTD 59
ELEMENT SIX (PTY) LTD 61
FOXTEC-IKHWEZI (PTY) LTD 63
IMPALA BOLT AND NUT (PTY) LTD 65
KIMBERLEY ENGINEERING WORKS FOUNDRIES (PTY) LTD 67
KPL DIE CASTING (PTY) LTD 69
LEBONIX (PTY) LTD 71
METMAR LTD 72
MIS ENGINEERING (PTY) LTD 74
MW WHEELS SA (PTY) LTD 76
NATAL IRON AND BRASS FOUNDRY CC 77
NON-FERROUS METAL WORKS (SA) (PTY) LTD 79
PANDROL SA (PTY) LTD 81
PRESSURE DIE CASTINGS (PTY) LTD 83
PREVAIL ENGINEERING (PTY) LTD 85
SAINT-GOBAIN PIPELINES SA (PTY) LTD 87
SCAW SOUTH AFRICA (PTY) LTD 90
STEELMETALS (PTY) LTD 94
STELOY CASTINGS (PTY) LTD 95
STURROCK AND ROBSON INDUSTRIES (PTY) LTD 98
TRANSNET SOC LTD 100
WAHL INDUSTRIES CC 105
WESTERN CAPE STEELWORKS (PTY) LTD 107
ZEALOUS AUTOMOTIVE (PTY) LTD 108

Introduction

This report focuses on the casting of finished or semi-finished products of iron or steel, viz. ferrous castings. During 2012, South Africa’s 180 foundries produced 375,000 tonnes of castings. 338,000 tonnes of these were ferrous. Foundries contributed R9bn to the South African gross domestic product (GDP) and employed 24,000 people in 2011. Since the publication of the previous sector report in 2009 the number of ferrous foundries has decreased from 139 to 89, mainly due to rapidly increasing energy and labour costs, lack of access to capital and a lack of skills development and training. During this time ferrous castings production decreased from 425,908 tonnes.

Strengths

• Many local foundries can compete with European foundries on price and complexity.
• The sector has underused capacity

Weaknesses

• Limited access to capital.
• Local foundries cannot compete with Asian foundries on price and delivery speeds.
• Many local foundries lack the resources to invest in modern technologies and implement new manufacturing methods, due to poor local demand.
• South Africa incurs a higher cost for lower qualifications and skills than the other BRICS countries.
• The workforce has under-developed skills, training and education.
• There is some resistance in the sector to adopting new technologies.

Opportunities

• Government support in the form of the Preferential Procurement Policy Framework Act, the National Infrastructure Plan, the Industrial Policy Action Plan and the dti’s Manufacturing Competitiveness Enhancement Programme.
• Sub-Saharan Africa is a growing market for South African products.
• Supply to the local automotive industry that has a goal to manufacture 1.2 million vehicles per year by 2020.

Threats

• A national carbon tax from 2015.
• Increasing cost of electricity and raw materials.
• Increasing imports competing with locally produced castings.
• Labour strike activity
• Poor and inconsistent local demand for foundry products.
• The cost of compliance with legislation concerning both air emissions and waste disposal.
• The South African automotive industry’s shift from local supplier development to the global sourcing of drivetrain and chassis components.

Outlook

The demand for iron and steel products in South Africa is growing, while the demand from the rest of Africa is expected to increase in the medium to long term, driven by investment in infrastructure, energy, mining and construction, thus creating potential for the development of the sector. South Africa’s foundry industry does, however, need to adopt the latest technologies to improve efficiency and decrease the impact on the environment, and develop new market opportunities to create diversity and meet market demands. According to the National Foundry Technology Network’s previous project leader, Adrie El Mohamadi, a lot of assistance is provided to the foundry sector through initiatives implemented by the NFTN – from skills development and productivity improvement to energy efficiency and quality enhancement - and government initiatives to underpin manufacturing. Both are expected to make a significant contribution to the industry’s future well-being.

The Casting of Metals Industry in South Africa
The Casting of Metals Industry in South Africa 2014

Full Report

R 1 900.00(ZAR) estimated $104.58 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.21 (USD)*

Historical Reports

The Casting of Metals Industry in South Africa 2022-11-24

R 9 500.00(ZAR) estimated $522.91 (USD)*

View Report Add to Cart

The Casting of Metals Industry in South Africa 2018-04-25

R 1 900.00(ZAR) estimated $104.58 (USD)*

View Report Add to Cart

The Casting of Metals Industry in South Africa 2015-11-13

R 1 900.00(ZAR) estimated $104.58 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Supply Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 7
4.1. Local 7
4.1.1. Corporate Actions 7
4.1.2. Regulations & Government programmes 8
4.1.3. Enterprise Development and Social Economic Development 8
4.2. Continental 10
4.3. International 11
5. INFLUENCING FACTORS 12
5.1. Government Intervention 12
5.2. Economic Environment 13
5.3. Rising Input Costs 13
5.4. Labour 13
5.5. Environmental Concerns 14
5.6. Information Technology 15
6. COMPETITION 15
6.1. Barriers to Entry 15
6.2. Technology, Research and Development (R&D) and Innovation 16
7. SWOT ANALYSIS 17
8. OUTLOOK 17
9. INDUSTRY ASSOCIATIONS 18
10. REFERENCES 18
10.1. Publications 18
10.2. Websites 18
ORGANOGRAM 20