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Manufacture of Tanks Cylinders Reservoirs Steam Generators Industry South Africa

Manufacture of Tanks, Cylinders, Reservoirs and Steam Generators Industry in South Africa 2020

Stephen Timm | South Africa | 26 August 2020

Manufacture of Tanks, Cylinders, Reservoirs and Steam Generators Industry in South Africa 2017

Marc Bosman | South Africa | 24 July 2017

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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. \r\n\r\nGrowth 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 confidence\r\n\r\nThere 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.\r\n\r\nThe 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.

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Manufacture of Tanks, Cylinders, Reservoirs and Steam Generators Industry in South Africa
Manufacture of Tanks, Cylinders, Reservoirs and Steam Generators Industry in South Africa 2020

Full Report

R 1 900.00(ZAR) estimated $105.19 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.63 (USD)*

Historical Reports

Manufacture of Tanks, Cylinders, Reservoirs and Steam Generators Industry in South Africa 2017-07-24

R 1 900.00(ZAR) estimated $105.19 (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 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

Report Coverage

The Manufacture of Tanks, Cylinders, Reservoirs and Steam Generators describes current conditions, developments in the LPG sector, factors driving industry growth and the strict regulatory environment. Other factors that influence the success of the sector are covered, including government intervention and a range of government and private sector initiatives. Profiles for 35 companies are provided, including ACTOM whose Boiler division, John Thompson marked the 60th anniversary of boiler manufacture in South Africa with a major expansion of its factory near Cape Town. Also profiled are SMMEs Quick Pools CC, which manufactures reservoir kits and water storage tanks, and Macrotec (Pty) Ltd which specialises in the manufacture of cremators, incinerators and hot water vessels.

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. The metals industry umbrella body, the Steel and Engineering Industries Federation of South Africa (SEIFSA) and industry players reported that 2016 was an extremely difficult year for the industry. The SMP industry and hence the PEM industry experienced declines in demand, sales, production, capacity utilisation, employment, investment, profit and the number of industry players. Statistics South Africa (StatsSA) reported that total annual SMP industry sales for the 2016/2017 financial year reached R 32.856bn, 2.28% or R746m down on 2015/2016.

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

• Designation of locally-produced steel products and components on government projects.
• Expansion into Africa where there are many infrastructure-related opportunities.
• Government support regarding capital investment.
• Increasing inspection and repair services revenue.
• The strategic infrastructure programme.

Threats

• Increasing threat of cheaper imports due to unfair competitive advantages enjoyed by China and other Asian countries.
• Rising manufacturing costs.
• Uncertainty due to changes in policy and regulatory environment.
• Worsening economic climate.

Outlook

SEIFSA forecasts that the metals and engineering sector will expand by 0.4% in 2017 while the SMP industry and therefore the PEM industry are expected to contract by -1.2%. Major industry players see no significant recovery in volume demand in the near future due to ongoing subdued economic growth and policy uncertainty limiting investment. Industry is anticipating continued reduced revenue growth due to increased competition, although if used correctly government initiatives could result in some growth. Analysts believe that increasing demand for food, energy, water and waste processing and projects in the mining and energy sectors combined with ongoing inspection and repair services revenue will sustain the industry.

Read More..
Manufacture of Tanks, Cylinders, Reservoirs and Steam Generators Industry in South Africa
Manufacture of Tanks, Cylinders, Reservoirs and Steam Generators Industry in South Africa 2017

Full Report

R 1 900.00(ZAR) estimated $105.19 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.63 (USD)*

Historical Reports

Manufacture of Tanks, Cylinders, Reservoirs and Steam Generators Industry in South Africa 2020-08-26

R 1 900.00(ZAR) estimated $105.19 (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 4
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 11
4.1. Local 11
4.1.1. Corporate Actions 14
4.1.2. Regulations 14
4.1.3. Enterprise Development and Social Economic Development 15
4.2. Continental 16
4.3. International 17
5. INFLUENCING FACTORS 18
5.1. Economic Environment 18
5.2. Government Initiatives and Intervention 19
5.3. Cheaper Imports 22
5.4. Labour 22
5.5. Technology, Research and Development (R&D) and Innovation 26
5.6. Cyclicality 27
5.7. Environmental Concerns 27
6. COMPETITION 28
6.1. Barriers to Entry 29
7. SWOT ANALYSIS 30
8. OUTLOOK 30
9. INDUSTRY ASSOCIATIONS 31
10. REFERENCES 33
10.1. Publications 33
10.2. Websites 37
APPENDIX 1 40
Items manufactured 40
COMPANY PROFILES 42
ABECO TANKS (PTY) LTD 42
ACTOM (PTY) LTD 44
ADCENG GAS EQUIPMENT (PTY) LTD 53
AFRICAN OXYGEN LTD 55
AIR PRODUCTS SOUTH AFRICA (PTY) LTD 61
ALLMECH CC 64
AQUADAM (PTY) LTD 66
ASSOCIATED ENERGY SERVICES (PTY) LTD 69
CYCLOTHERM (SOUTH AFRICA) (PTY) LTD 71
DBT TECHNOLOGIES (PTY) LTD 73
EURO AUTOMATION TECHNOLOGY (PTY) LTD 76
FORGEWELD ENGINEERING (PTY) LTD 78
FREEZE BURN CC 80
GEA AFRICA (PTY) LTD 81
HYDRA-ARC (PTY) LTD 83
HYDREX (PTY) LTD 85
HYDROCYLINDER (SA) (PTY) LTD 87
HYTEC ENGINEERING (PTY) LTD 88
INDOCO REMEDIES SA (PTY) LTD 89
KAPPA ENGINEERING (PTY) LTD 90
MACROTEC (PTY) LTD 92
MITSUBISHI HITACHI POWER SYSTEMS AFRICA (PTY) LTD 93
ND ENGINEERING AND MAINTENANCE SERVICES (PTY) LTD 95
PABAR (PTY) LTD 96
PETROTANK SOUTH AFRICA (PTY) LTD 98
QUICK POOLS CC 100
SBS WATER SYSTEMS (PTY) LTD 102
SITE MAINTENANCE AND FABRICATION SERVICES (PTY) LTD 104
SKYWATER DIMENSIONS CC 105
SOUTH AFRICAN NUCLEAR ENERGY CORPORATION SOC LTD (THE) 106
STAAL BOER CC 109
STEINMULLER AFRICA (PTY) LTD 110
STYRIA STAINLESS STEEL FABRICATION (PTY) LTD 112
TURNMILL PROQUIP ENGINEERING (PTY) LTD 114
WELFIT ODDY (PTY) LTD 116