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Manufacture and Wholesale of Machinery for Mining, Quarrying and Construction in South Africa

Manufacturing of Machinery for Mining, Quarrying and Construction 2016

Alex Conradie | South Africa | 27 September 2016

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Report Coverage

The report on The Manufacture of Machinery for Mining, Quarrying and Construction describes current conditions in the local sector and factors influencing the success of the industry. The report profiles 40 companies including market leaders Bell Equipment Ltd and Barloworld Ltd, the official dealer for Caterpillar construction and mining machines in southern Africa. Also profiled are Wuhlf Equipment (Pty) Ltd, active in the construction sector, and Pilot Crushtec International, which was appointed as the sole distributor of Finnish company Metso’s aggregates products and services in southern Africa in April 2016.

Introduction

This report focuses on the manufacture and wholesale of mining, quarrying and construction machinery in South Africa. Data from the Construction and Mining Equipment Suppliers’ Association (CONMESA) shows that a total of 5,718 items of mining and construction equipment were sold during 2015. According to the Sector Skills Plan Update: 2015/16-2019/20 of the Manufacturing, Engineering and Related Services Sector Education and Training Authority (merSETA), employment in its metal chamber totalled 298,000 in June 2015. Currently manufacturers of mining, quarrying and construction machines are experiencing subdued demand for their products, due to low commodity prices and limited activity in the construction sector.

Strengths

• Companies invest in technological innovation.
• Mature market with several players.
• Provides equipment used by different economic sectors.
• Reputation for manufacturing high quality products.
• The provision of thorough back-up and maintenance services.

Weaknesses

• Severe skills shortages of artisans, technicians, engineers and project managers.
• There is fierce competition from numerous importers and distributors of international brands.

Opportunities

• Establishment of the Mining Equipment Manufacturing of South Africa organisation.
• Exports into the rest of Africa.
• Planned establishment of a local export-import bank.
• Planned spending by government and state-owned companies on infrastructure.

Threats

• For local manufacturers, increasing numbers of cheaper imports.
• Rising input costs.
• Subdued demand if commodity prices remain low and if construction activity does not increase.
• Volatile exchange rate.

Outlook

Several manufacturers of mining, quarrying and construction machines expect markets to remain flat during the remainder of 2016, but Barloworld is hopeful for a recovery during 2017 and 2018 as the mining industry starts to invest in new projects. Several greenfield projects are likely to commence as soon as commodity prices improve and stabilise. CONMESA’s Stefan Otto said, “In the short term I believe we will be hanging on and just aiming to survive. With the amount of uncertainty in the market and the difficulties facing our major clients in the mining and construction sectors it will most likely be a bumpy 2016 and 2017 with the chance of weathering the storm only by late 2017. In the medium term I hope to see a stabilisation of the exchange rate and a stable South African economy with a slow uptick in business from late 2017 onward.”

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Manufacturing of Machinery for Mining, Quarrying and Construction
Manufacturing of Machinery for Mining, Quarrying and Construction 2016

Full Report

R 1 900.00(ZAR) estimated $103.33 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.33 (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 3
4. STATE OF THE INDUSTRY 7
4.1. Local 7
4.1.1. Corporate Actions 12
4.1.2. Regulations 12
4.1.3. Enterprise Development and Social Economic Development 13
4.2. Continental 14
4.3. International 15
5. INFLUENCING FACTORS 17
5.1. Economic Environment 17
5.2. Rising Input Costs 17
5.3. State of the Mining and Construction Sectors 18
5.4. Government Policy 20
5.5. Technology, Research and Development (R&D) and Innovation 20
5.6. Labour 23
5.7. Environmental Concerns 25
5.8. Availability of Service Centres and Parts 25
6. COMPETITION 26
6.1. Barriers to Entry 26
7. SWOT ANALYSIS 27
8. OUTLOOK 27
9. INDUSTRY ASSOCIATIONS 28
10. REFERENCES 28
10.1. Publications 28
10.2. Websites 29
COMPANY PROFILES 30
AARD MINING EQUIPMENT (PTY) LTD 30
ATLAS COPCO SOUTH AFRICA (PTY) LTD 33
AURY AFRICA (PTY) LTD 35
BARLOWORLD LTD 36
BELL EQUIPMENT LTD 40
BIRD MACHINES (PTY) LTD 44
CMTI MINING MANUFACTURING (PTY) LTD 46
DCD GROUP (PTY) LTD 47
DESMOND EQUIPMENT SA CC 50
ELB GROUP LTD 51
EQSTRA TA EQUIPMENT (PTY) LTD 54
FERMEL (PTY) LTD 56
FLSMIDTH (PTY) LTD 58
GALISON MANUFACTURING (PTY) LTD 60
HITACHI CONSTRUCTION MACHINERY SOUTHERN AFRICA CO (PTY) LTD 61
IAN DICKIE AND COMPANY (PTY) LTD 63
INVICTA HOLDINGS LTD 64
JOEST KWATANI (PTY) LTD 68
JOY GLOBAL (AFRICA) (PTY) LTD 70
KOMATSU AFRICA HOLDINGS (PTY) LTD 72
LIEBHERR-AFRICA (PTY) LTD 75
LONGYEAR SOUTH AFRICA (PTY) LTD 77
MANHATTAN MINING EQUIPMENT (PTY) LTD 79
MAX POWER SERVICES (PTY) LTD 81
MECHPROTECH (PTY) LTD 83
METSO SOUTH AFRICA (PTY) LTD 84
MULTOTEC (PTY) LTD 85
OCTA ENGINEERING KROONSTAD (PTY) LTD 87
OSBORN ENGINEERED PRODUCTS SA (PTY) LTD 89
PAN MIXERS SOUTH AFRICA (PTY) LTD 91
PETREL ENGINEERING (PTY) LTD 92
PILOT CRUSHTEC INTERNATIONAL (PTY) LTD 94
REEF CONSTRUCTION MACHINERY COMPANY (PTY) LTD 96
SMITH CAPITAL EQUIPMENT (PTY) LTD 97
TENOVA MINING AND MINERALS SOUTH AFRICA (PTY) LTD 98
THYSSENKRUPP INDUSTRIAL SOLUTIONS (AFRICA) (PTY) LTD 100
TRIDENT SOUTH AFRICA (PTY) LTD 102
TURNER MORRIS (PTY) LTD 104
VAN REENEN STEEL (PTY) LTD 106
WUHLF EQUIPMENT (PTY) LTD 108