Report Coverage
This report focuses on the manufacture of tanks, cylinders, reservoirs and steam generators, otherwise known as the pressure equipment manufacturing industry, a value-adding manufacturing division in the fabrication of metals sub-sector, which includes all structural metal products in the fourth and final stage of the metals beneficiation process. It includes comprehensive information on the state of the sector and influencing factors including trade and regulatory factors, corporate actions and sectoral and corporate developments. There are profiles of 34 companies including major players such as Actom and African Oxygen, the state-owned South African Nuclear Energy Corporation, gas cylinder manufacturer Pabar and Mitsubishi Hitachi Power Systems Africa, which sells commercial-use boilers.
Introduction
This report focuses on the manufacture of tanks, cylinders, reservoirs and steam generators, referred to in this report as the pressure equipment manufacturing (PEM) industry. This is a value-adding manufacturing division in the fabrication of metals sub-sector, which includes all structural metal products (SMP) in the fourth and final stage of the metals beneficiation process. Growth in the sector remains volatile and continues to trend below its 18-year average, according to the metals industry umbrella body, the Steel and Engineering Industries Federation of South Africa (Seifsa). This has been compounded by the onset of the coronavirus pandemic and the associated lockdown since March 2020.
Strengths
• A well-established sector with a good reputation for quality products.
• There is spare production capacity.
• Well-regulated sector with stringent safety regulations in place.
Weaknesses
• Lack of technology take-up by smaller companies.
• Limited skills in all categories, compounded by those who are qualified being inadequately skilled, and an absence or lack of apprenticeships.
• Local unit labour cost is higher and labour less productive than China and India.
• Stringent regulatory compliance adds to already high costs of production.
Opportunities
• Adoption of new technology such as internet of things and artificial intelligence.
• Designation of locally-produced steel products and components on government projects.
• Expansion into Africa and the free trade agreement.
• Government’s infrastructure fund.
• New LPG production plants
• The strategic infrastructure programme.
Threats
• Coronavirus pandemic and recovery
• Increasing threat of cheaper imports due to unfair competitive advantages enjoyed by China and other Asian countries.
• Recent introduction of a carbon tax
• Rising manufacturing costs.
• Uncertainty due to changes in policy and regulatory environment.
• Worsening economic environment and lack of demand
Outlook
The outlook for the sector remains poor. The pressure equipment manufacturing sector is facing a multi-year slowdown in demand driven by among other things, a fall in infrastructure spending, poor productive capacity and low business confidence. Business activity fell precipitously during the first half of 2020. Steel and Engineering Industries Federation of South Africa economist Michael Ade says the uncertainty created by coronavirus has compounded low levels of domestic demand for intermediate and finished products, dampened selling prices and has worsened levels of business, investor and consumer confidenceThere is an increasing possibility that the damage inflicted by the coronavirus pandemic in the stainless steel sector, might still be mitigated to some extent during this financial year. Southern African Stainless Steel Development Association acting executive director Michel Basson says some companies are reporting good order books with a strong component of delayed work in contrast to cancelled work in the stainless steel fabrication sector. Despite this, in a year-to-year comparison, there has been a decline in apparent local usage of stainless steel in the order of 8%, he says.The industry hopes to take advantage of the African Continental Free Trade Area which was to have come into effect in July 2020 but has been delayed because of the coronavirus pandemic. A tentative date of January 2021 has been set by the African Union.
Manufacture of Tanks, Cylinders, Reservoirs and Steam Generators Industry in South Africa
2020
Full Report
R 1 900.00(ZAR) estimated $101.90 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 71.33 (USD)*
Historical Reports
Manufacture of Tanks, Cylinders, Reservoirs and Steam Generators Industry in South Africa 2017-07-24
R 1 900.00(ZAR) estimated $101.90 (USD)*
View Report Add to CartTable 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 | 3 |
| 4. | STATE OF THE INDUSTRY | 5 |
| 4.1. | Local | 5 |
| 4.1.1. | Corporate Actions | 10 |
| 4.1.2. | Regulations | 10 |
| 4.1.3. | Enterprise Development and Social Economic Development | 12 |
| 4.2. | Continental | 13 |
| 4.3. | International | 14 |
| 5. | INFLUENCING FACTORS | 15 |
| 5.1. | Government Intervention | 15 |
| 5.2. | Economic Environment | 17 |
| 5.3. | Cheap Imports | 17 |
| 5.4. | Labour | 17 |
| 5.5. | Technology, Research and development (R&D) and Innovation | 20 |
| 5.6. | Cyclicality | 22 |
| 5.7. | Environmental Concerns | 22 |
| 6. | COMPETITION | 23 |
| 6.1. | Barriers to Entry | 24 |
| 7. | SWOT ANALYSIS | 24 |
| 8. | OUTLOOK | 25 |
| 9. | INDUSTRY ASSOCIATIONS | 26 |
| 10. | REFERENCES | 28 |
| 10.1. | Publications | 28 |
| 10.2. | Websites | 28 |
| APPENDIX 1 | 30 | |
| Items Manufactured | 30 | |
| APPENDIX 2 | 32 | |
| Summary of Notable Players | 32 | |
| COMPANY PROFILES | 37 | |
| ABECO (PTY) LTD | 37 | |
| ACTOM (PTY) LTD | 39 | |
| ADCENG GAS EQUIPMENT (PTY) LTD | 47 | |
| AFRICAN OXYGEN LTD | 49 | |
| AIR PRODUCTS SOUTH AFRICA (PTY) LTD | 56 | |
| ALLMECH (PTY) LTD | 59 | |
| AQUASTEEL (PTY) LTD | 61 | |
| CGH SOUTH AFRICA (PTY) LTD | 63 | |
| CYCLOTHERM SOUTH AFRICA (PTY) LTD | 64 | |
| EURO AUTOMATION TECHNOLOGY (PTY) LTD | 66 | |
| FORGEWELD ENGINEERING (PTY) LTD | 68 | |
| FREEZE BURN CC | 70 | |
| GEA AFRICA (PTY) LTD | 72 | |
| GRW ENGINEERING (PTY) LTD | 74 | |
| HYDRA-ARC (PTY) LTD | 76 | |
| HYDREX (PTY) LTD | 78 | |
| HYDROCYLINDER ENGINEERING (PTY) LTD | 80 | |
| HYTEC ENGINEERING (RF) (PTY) LTD | 81 | |
| INDOCO REMEDIES SA (PTY) LTD | 82 | |
| KAPPA ENGINEERING (PTY) LTD | 83 | |
| MACROTEC (PTY) LTD | 85 | |
| MITSUBISHI HITACHI POWER SYSTEMS AFRICA (PTY) LTD | 86 | |
| ND ENGINEERING AND MAINTENANCE SERVICES (PTY) LTD | 88 | |
| PABAR (PTY) LTD | 90 | |
| SBS CORPORATE SERVICES (PTY) LTD | 92 | |
| SITE MAINTENANCE AND FABRICATION SERVICES (PTY) LTD | 94 | |
| SKYWATER DIMENSIONS CC | 96 | |
| SOUTH AFRICAN NUCLEAR ENERGY CORPORATION SOC LTD (THE) | 98 | |
| STAAL BOER CC | 102 | |
| STEINMULLER AFRICA (PTY) LTD | 103 | |
| STYRIA STAINLESS STEEL FABRICATION (PTY) LTD | 106 | |
| TANK CLINIC (PTY) LTD | 108 | |
| TURNMILL PROQUIP ENGINEERING (PTY) LTD | 110 | |
| WELFIT ODDY (PTY) LTD | 112 |
