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The Manufacture of Structural Metal Products in South Africa

The Manufacture of Structural Metal Products in South Africa 2020

Alex Conradie | South Africa | 31 July 2020

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Report Coverage

This report focuses on The Manufacture of Structural Metal Products in South Africa, and includes information on the state and size of the sector, developments and corporate actions, trade statistics and influencing factors. There are profiles of 17 companies including major producers of structural metal products such as Argent Industrial, CIS Engineering, Consolidated Steel Industries, Mazor Group and Wispeco. Other profiles include barrier security products manufacturer Trellidor Holdings and GRI Wind Steel, the only local manufacturer of wind towers, as well as Kwikspace, which produces prefabricated and modular buildings.

Introduction

According to the International Trade Centre’s Trade Map, South Africa exported 158,814 tons (t) of structural metal products to the value of US$366.9m in 2019, while Stats SA figures indicate the structural metal products manufacturing sector had an estimated turnover of R47.8bn in 2018. However, the impact of the coronavirus pandemic and weak economic conditions continue to have a significant effect on the performance of the local structural metal products manufacturing sector.

Strengths

• Structural metal products are the preferred material in several applications.
• The structural metal products manufacturing sector is well established.

Weaknesses

• Demand for structural metal products is heavily dependent on one sector – the construction sector.

Opportunities

• Increased demand for wind towers, electricity transmission towers and light steel frame building products.

Threats

• Depressed domestic demand due to the impact of the coronavirus pandemic and weak economic conditions.
• Increasing cost of electricity, water, transport and labour.

Outlook

South African economic research institution Trade and Industrial Policy Strategies (Tips) expects the impact of the coronavirus pandemic to affect the mining sector negatively and the electricity, gas and water and construction sectors very negatively. The previously forecasted amount of local steel demand for the second quarter of 2020 is therefore expected to be reduced by 50% due to the impact of the pandemic, while it is forecast to improve later in 2020 to between 60% and 70% of normal levels. Domestic steel demand for 2020 is forecast to drop by 27% from 2019’s figure of 4.5Mt. Talking about the First National Bank/Bureau for Economic Research building confidence index, senior economist at First National Bank, Siphamandla Mkhwanazi, said in June 2020: “While we may see a rebound on a quarterly basis in the third quarter as a result of the gradual reopening of the economy, building demand, and therefore activity, is still going to be severely constrained over the short term.” Barrier security products manufacturer Trellidor Holdings said in May 2020 it expected lower demand for its products until the end of 2020 due to consumers’ reduced disposable income. Energy investment company Hulisani, however, sees growing demand for wind towers in South Africa and the rest of the continent, due to the increasing use of wind energy, while Kwikspace Modular Buildings expects higher demand for its prefabricated buildings from energy and mining project developers in the rest of Africa.

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The Manufacture of Structural Metal Products in South Africa
The Manufacture of Structural Metal Products in South Africa 2020

Full Report

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

Industry Landscape

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

Table of Contents

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PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 1
2.2. Geographic Position 2
3. SIZE OF THE INDUSTRY 2
4. STATE OF THE INDUSTRY 3
4.1. Local 3
4.1.1. Trade 6
4.1.2. Corporate Actions 8
4.1.3. Regulations 9
4.1.4. Enterprise Development and Social Economic Development 10
4.2. Continental 10
4.3. International 11
5. INFLUENCING FACTORS 12
5.1. Coronavirus 12
5.2. Economic Environment 13
5.3. Rising Input Costs 14
5.4. Technology, Research and Development (R&D) and Innovation 14
5.5. Government Incentives and Support 15
5.6. Environmental Concerns 15
5.7. Labour 16
6. COMPETITION 17
6.1. Barriers to Entry 18
7. SWOT ANALYSIS 18
8. OUTLOOK 19
9. INDUSTRY ASSOCIATIONS 19
10. REFERENCES 20
10.1. Publications 20
10.2. Websites 20
APPENDIX 1 22
Summary of Notable players 22
COMPANY PROFILES 26
AFMETCO (PTY) LTD 26
ANDREW MENTIS (PTY) LTD 28
ARGENT INDUSTRIAL LTD 30
CIS ENGINEERING (PTY) LTD 35
CONSOLIDATED STEEL INDUSTRIES (PTY) LTD 37
FENSTER ALUMINIUM (PTY) LTD 40
GRI WIND STEEL SOUTH AFRICA (PTY) LTD 42
HAMPSON INTERIORS (PTY) LTD 44
HULAMIN LTD 45
KWIKSPACE MODULAR BUILDINGS (PTY) LTD 49
LEITA STEEL (PTY) LTD 51
MAZOR GROUP LTD 52
NJR STEEL FENCING (PTY) LTD 55
ROLLUP SERRANDA (PTY) LTD 56
RTS TOWER MAST (PTY) LTD 57
TRELLICOR (PTY) LTD 58
WISPECO (PTY) LTD 61