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    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

    Report Info

    Report Summary Table of Contents
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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. \r\n
    • The value of metal castings exports declined in 2021 and employment in the industry has decreased.\r\n
    • 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. \r\n
    • The African Continental Free Trade Area agreement should provide opportunities to South African foundries to increase their exports to other countries on the continent.\r\n
    • 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

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

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

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

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    Table of Contents

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    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.

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    The Casting of Metals Industry in South Africa
    The Casting of Metals Industry in South Africa 2018

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    R 1 330.00(ZAR) estimated $ 74.49 (USD)*

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

    R 9 500.00(ZAR) estimated $532.10 (USD)*

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

    R 1 900.00(ZAR) estimated $106.42 (USD)*

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

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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 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. \r\n\r\nThe 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 $106.42 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 74.49 (USD)*

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    Historical Reports

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

    R 9 500.00(ZAR) estimated $532.10 (USD)*

    View Report Add to Cart

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

    R 1 900.00(ZAR) estimated $106.42 (USD)*

    View Report Add to Cart

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

    R 1 900.00(ZAR) estimated $106.42 (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 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\nAfrica’s 180 foundries produced 375,000 tonnes of castings. 338,000 tonnes of these were ferrous. Foundries contributed R9bn to the\nSouth African gross domestic product (GDP) and employed 24,000 people in 2011. Since the publication of the previous sector\nreport in 2009 the number of ferrous foundries has decreased from 139 to 89, mainly due to rapidly increasing energy and labour\ncosts, lack of access to capital and a lack of skills development and training. During this time ferrous castings production decreased\nfrom 425,908 tonnes.

    Strengths

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

    Weaknesses

    • Limited access to capital.
    • Local foundries cannot compete with Asian foundries on\nprice 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\ntechnologies.

    Opportunities

    • Government support in the form of the Preferential\nProcurement Policy Framework Act, the National\nInfrastructure Plan, the Industrial Policy Action Plan and\nthe dti’s Manufacturing Competitiveness Enhancement\nProgramme.
    • Sub-Saharan Africa is a growing market for South African\nproducts.
    • Supply to the local automotive industry that has a goal to\nmanufacture 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 $106.42 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 74.49 (USD)*

    Buy Now +

    Historical Reports

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

    R 9 500.00(ZAR) estimated $532.10 (USD)*

    View Report Add to Cart

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

    R 1 900.00(ZAR) estimated $106.42 (USD)*

    View Report Add to Cart

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

    R 1 900.00(ZAR) estimated $106.42 (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

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