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The Manufacture and Wholesale of Pumps, Compressors, Taps and Valves Industry in South Africa 2018

Yasmin Mahomedy | South Africa | 13 December 2018

The Manufacture and Wholesale of Pumps, Compressors, Taps and Valves Industry in South Africa 2016

Yasmin Mahomedy | South Africa | 13 December 2016

The Manufacture and Wholesale of Pumps, Compressors, Taps and Valves Industry in South Africa 2014

Brenda Young | South Africa | 30 June 2014

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Report Coverage

This report focuses on the Manufacture and Wholesale of Pumps, Compressors, Taps and Valves. It includes comprehensive profiles of 32 companies including the largest pump manufacturers in South Africa, Weir Minerals, KSB and Sulzer Pumps SA. It also includes a profiles on Ainsworth Engineering, which, together with sister company UVC, has changed ownership.

Introduction

This report focuses on the manufacture and wholesale of pumps, compressors, taps and valves in South Africa. The valve and pumps sector, which is valued at approximately R5.5bn per annum, is being affected by increasing imports, the weak local economy, volatile exchange rates and insufficient skills. The increasing cost of production has resulted in many manufacturers ceasing manufacturing operations and becoming resellers of products imported mainly from China.

Strengths

• High levels of innovation as locally-based subsidiaries of foreign multinational companies have access to advanced research and development facilities.

Weaknesses

• Input costs for local manufacture are high so companies cannot compete with imported products.
• Reliant on a consistent supply of reasonably-priced scrap metal to the foundries.
• The manufacturing industry is energy-intensive.

Opportunities

•  The government’s Industrial Policy Action Plan and the Preferential Procurement Policy Framework Act should support the pumps and valves industry by designating products for local procurement with minimum content thresholds.
• Ageing infrastructure requires investment by government.
• Demand for pumps from the renewable energy sector.
• Repair and refurbishment of critical valves.

Threats

• Increasing imports of cheap Asian products.
• More foundries closing down.
• Skill shortages.

Outlook

The South African pumps and valves industry is expected to continue experiencing difficult trading conditions amidst a weak economy, rising production costs, shortage of skills and cheap imports. Although the requirement that state-owned enterprises specify a minimum of 70% local content has the potential to create significant job opportunities along the valves value chain, it remains to be seen whether manufacturers will be able to win the battle against the cheap imported valves that enter the South African market. This challenge is further compounded by a shortage of specialised engineering skills that can deal with valve design and manufacturing. Brimis Engineering technical director Moeketsi Mpotu said: “The industry must continue to perform to expected technical specifications and at competitive price points, while all stakeholders, including government, must support an enabling environment. Industry should have deliberate programmes to assist new entrants to play a meaningful role in the supply and maintenance of valves.”

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The Manufacture and Wholesale of Pumps, Compressors, Taps and Valves Industry in South Africa
The Manufacture and Wholesale of Pumps, Compressors, Taps and Valves Industry in South Africa 2018

Full Report

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

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.33 (USD)*

Historical Reports

The Manufacture and Wholesale of Pumps, Compressors, Taps and Valves Industry in South Africa 2016-12-13

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

View Report Add to Cart

The Manufacture and Wholesale of Pumps, Compressors, Taps and Valves Industry in South Africa 2014-06-30

R 1 900.00(ZAR) estimated $103.33 (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 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. Corporate Actions 5
4.1.2. Regulations 6
4.1.3. Enterprise Development and Social Economic Development 7
4.2. Continental 8
4.3. International 9
5. INFLUENCING FACTORS 10
5.1. Government Initiatives 10
5.2. Economic Environment 10
5.3. Rising Operating Costs 11
5.4. Availability of Input Material 11
5.5. Labour 12
5.6. Technology, Research and Development (R&D) and Innovation 13
5.7. Environmental Concerns 14
6. COMPETITION 15
6.1. Barriers to Entry 16
7. SWOT ANALYSIS 16
8. OUTLOOK 17
9. INDUSTRY ASSOCIATIONS 17
10. REFERENCES 18
10.1. Publications 18
10.2. Websites 18
APPENDIX 1 19
Summary of Major Players 19
COMPANY PROFILES 23
ABB SOUTH AFRICA (PTY) LTD 23
AINSWORTH ENGINEERING (PTY) LTD 27
ARI FLOW CONTROL AFRICA (PTY) LTD 29
AVENG AFRICA (PTY) LTD 31
AVK HOLDING SOUTHERN AFRICA (PTY) LTD 37
AZ-ARMATUREN SOUTH AFRICA (PTY) LTD 39
BRAYBAR PUMPS (PTY) LTD 40
BREHNOR PUMPS (PTY) LTD 42
DISTRIBUTION AND WAREHOUSING NETWORK LTD 43
ENSERVE ENGINEERING SERVICES (PTY) LTD 46
FLOWSERVE SOUTH AFRICA (PTY) LTD 48
FRANKLIN ELECTRIC (SOUTH AFRICA) (PTY) LTD 50
GOSCOR (PTY) LTD 52
GRUNDFOS (PTY) LTD 54
INGERSOLL-RAND COMPANY SOUTH AFRICA (PTY) LTD 56
KSB PUMPS AND VALVES (PTY) LTD 58
LIXIL AFRICA (PTY) LTD 61
MAGETZ ELECTRICAL CC 63
MATASE INDUSTRIAL SOLUTIONS (PTY) LTD 65
PAMODZI UNIQUE ENGINEERING (PTY) LTD 67
PIPE MAKERS (PTY) LTD 69
PSV HOLDINGS LTD 71
RAPID ALLWEILER PUMP AND ENGINEERING COMPANY (PTY) LTD 74
S A M ENGINEERING (PTY) LTD 76
SCAMONT ENGINEERING (PTY) LTD 78
SULZER PUMPS (SOUTH AFRICA) (PTY) LTD 80
TORRE HOLDINGS (PTY) LTD 82
WACKER NEUSON (PTY) LTD 85
WALTER MEANO ENGINEERING (PTY) LTD 87
WATSON-MARLOW BREDEL SA (PTY) LTD 89
WEIR MINERALS AFRICA (PTY) LTD 91
ZENZELE VALVES MANUFACTURING (PTY) LTD 94

Report Coverage

This report examines the major activities of the sector, the size and state of the industry and outlines the initiatives implemented by government in an attempt to revive the manufacturing sector. The report profiles 20 companies, including the three largest pump manufacturers, Weir Minerals, KSB and Sulzer Pumps SA. Also profiled is AVK Holding Southern Africa (Pty) Ltd, a Danish valve company that acquired a majority stake in South Africa’s Premier Valves Group (PVG) in 2014.

Introduction

This report focuses on the manufacture and wholesale of pumps, compressors, taps and valves in South Africa. The valve and pumps sectors are valued at approximately R5.5bn per annum and experienced weak growth over the past year, mainly because government projects in the water supply sector were postponed. Valve manufacturers rely largely on State-Owned Enterprises (SOEs) for business, with the water and power generation industries accounting for 43% of the total valve market.

Strengths

• High levels of innovation as locally based subsidiaries of foreign multinational companies have advanced research and development facilities.

Weaknesses

• Input costs for local manufacture are high so companies cannot compete with imported products.
• Reliant on a consistent supply of reasonably priced scrap metal to the foundries.
• SABS product certification processes and procedures are complex and not all are recognised internationally.
• The manufacturing industry is energy-intensive.

Opportunities

• Ageing infrastructure requires investment by government.
• Demand for pumps from the renewable energy sector.
• Export of pumps as demand overseas increases.
• The government’s IPAP and the Preferential Procurement Policy Framework Act should support the pumps and valves industry by designating products for local procurement with minimum content thresholds.

Threats

• Increasing imports of cheap Asian products.
• More foundries closing down.
• Skill shortages.

Outlook

SAPSDA chairperson Gareth Langton reported that despite the many challenges that local pumps manufacturers face, the South African sector has the potential to become a world class supplier of high quality pump products and will be able to compete with other “low-cost countries” if manufacturers improve their operational efficiencies. Respondents from both the pumps and valves sectors believe that if the many government projects such as water schemes, dams and oil pipelines materialise, the industry will flourish as will the upstream and downstream value chain. According to SAPSDA executive committee member Thys Wehmeyerr, the local pumps sector will also benefit from exporting to lucrative overseas markets if the SABS product certification processes and procedures are simplified and amended so they are recognised by other international certification authorities.

Read More..
The Manufacture and Wholesale of Pumps, Compressors, Taps and Valves Industry in South Africa
The Manufacture and Wholesale of Pumps, Compressors, Taps and Valves Industry in South Africa 2016

Full Report

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

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.33 (USD)*

Historical Reports

The Manufacture and Wholesale of Pumps, Compressors, Taps and Valves Industry in South Africa 2018-12-13

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

View Report Add to Cart

The Manufacture and Wholesale of Pumps, Compressors, Taps and Valves Industry in South Africa 2014-06-30

R 1 900.00(ZAR) estimated $103.33 (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 1
2.2. Geographic Position 2
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 5
4.1. Local 5
4.1.1. Corporate Actions 7
4.1.2. Regulations 8
4.1.3. Enterprise Development and Social Economic Development 9
4.2. Continental 10
4.3. International 10
5. INFLUENCING FACTORS 11
5.1. Economic Environment 11
5.2. Government Initiatives 12
5.3. Rising Input Costs 13
5.4. Availability of Input Material 14
5.5. Technology, Research and Development (R&D) and Innovation 14
5.6. Labour 15
5.7. Environmental Concerns 17
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 21
VAMCOSA Members 21
SAPSDA Members 21
COMPANY PROFILES 23
AINSWORTH ENGINEERING (PTY) LTD 23
AVENG AFRICA (PTY) LTD 25
AVK HOLDING SOUTHERN AFRICA (PTY) LTD 31
BRAYBAR PUMPS (PTY) LTD 33
DISTRIBUTION AND WAREHOUSING NETWORK LTD 35
ENSERVE ENGINEERING SERVICES (PTY) LTD 38
FRANKLIN ELECTRIC (SOUTH AFRICA) (PTY) LTD 40
GRUNDFOS (PTY) LTD 42
GUNRIC VALVE MANUFACTURING (PTY) LTD 44
INGERSOLL-RAND COMPANY SA (PTY) LTD 46
KSB PUMPS AND VALVES (PTY) LTD 48
PAMODZI UNIQUE ENGINEERING (PTY) LTD 51
PIPE MAKERS (PTY) LTD 53
PSV HOLDINGS LTD 55
S A M ENGINEERING (PTY) LTD 58
SCAMONT ENGINEERING (PTY) LTD 60
SULZER PUMPS (SOUTH AFRICA) (PTY) LTD 62
WALTER MEANO ENGINEERING (PTY) LTD 64
WATSON-MARLOW BREDEL SA (PTY) LTD 66
WEIR MINERALS AFRICA (PTY) LTD 68

Introduction

This report focuses on the manufacture and wholesale of pumps, compressors, taps and valves in South Africa. The Southern African Pump Systems Development Association (SAPSDA) (previously The South African Pumps Manufacturers’ Association (SAPMA)) reported that an audit by PricewaterhouseCoopers (PwC) is currently underway in an attempt to determine the value of the local pump industry. The value of the taps and mixers manufacturing industry is estimated at R1.2bn. During 2013 pumps, compressors, taps and valves to the value of R12.87bn were imported while exports amounted to R5.76bn.

Strengths

• High levels of innovation as locally based subsidiaries of foreign multinational companies have advanced research and development facilities.
• Locally manufactured brands are supported by the availability of spare parts and technical backup.
• Pump manufacturing facilities are currently running at only 50% to 60% capacity so plants can increase production.

Weaknesses

• Input costs for local manufacture are high so companies cannot compete with imported products.
• Reliant on a consistent supply of reasonably priced scrap metal to the foundries.
• The manufacturing industry is energy intensive.

Opportunities

• Increased mining and oil and gas discoveries and developments in the rest of Africa.
• New scrap metal export rules should ensure procurement at a preferential price, which should enable local manufacturers to compete internationally.
• The government’s infrastructure programme will amount to R847bn over the next three years. New Eskom power stations are being built and local manufacturers will benefit from this build programme.
• The government’s IPAP and the Preferential Procurement Policy Framework Act are supporting the pumps and valves industry by designating products for local procurement with minimum content thresholds. Manufacturers are allowed to access the projected spend of SOEs.
• The need for energy efficient, environmentally–friendly and intelligent products are driving development of new products.

Threats

• Increasing imports of cheap Asian products.
• Skill shortages.
• Strikes in the mining sector which will result in missed opportunities and profits for the pump and valve industry.

Outlook

The IPAP 2013/2014 – 2015/2016 estimates that the country’s mineral reserves and resources are worth more than $2.5-trillion so the opportunities for the downstream pumps and valves industry are immense. However, the current mining climate has had a negative impact on the local pump manufacturing industry as the mining sector accounts for almost 30% of the industry’s output. Demand for pumps and valves is expected to increase in the power generation sector, with Eskom forecast to account for 11% of pump demand. John Thompson, organiser of the Pumps, Valves and Pipes Africa (PVPA) trade exhibition in May 2013, announced that about R1.47bn of Eskom’s projected capacity expansion budget will be spent over the next five years on valves and valve spares. New markets opening up in the mining sector in the rest of Africa are also expected to have a positive effect on local pump and valve production, which should be stimulated by the implementation of the Preferential Procurement Policy. If properly implemented, turnover of between R4bn and R5bn per annum for the valve industry alone has been forecast.

The Manufacture and Wholesale of Pumps, Compressors, Taps and Valves Industry in South Africa
The Manufacture and Wholesale of Pumps, Compressors, Taps and Valves Industry in South Africa 2014

Full Report

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

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.33 (USD)*

Historical Reports

The Manufacture and Wholesale of Pumps, Compressors, Taps and Valves Industry in South Africa 2018-12-13

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

View Report Add to Cart

The Manufacture and Wholesale of Pumps, Compressors, Taps and Valves Industry in South Africa 2016-12-13

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

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY AND SUPPLY CHAIN 1
3. SIZE OF THE INDUSTRY 1
4. STATE OF THE INDUSTRY 3
4.1. Local 3
4.1.1. Corporate Actions 4
4.1.2. Regulations 4
4.1.3. Enterprise Development and Social Economic Development 5
4.2. Continental 6
4.3. International 8
5. INFLUENCING FACTORS 9
5.1. Economic Environment 9
5.2. Limited Foundry Capacity 9
5.3. Government Initiatives 9
5.4. Input Costs 9
5.5. Availability of input Material 9
5.6. Labour 10
5.7. Technology and Information Technology 11
5.8. Environmental Concerns 11
6. COMPETITION 12
6.1. Barriers to Entry 13
6.2. Research and Development (R&D) and Innovation 13
7. SWOT ANALYSIS 13
8. OUTLOOK 14
9. INDUSTRY ASSOCIATIONS 14
10. REFERENCES 15
10.1. Publications 15
10.2. Websites 15
APPENDIX 1 16
The Southern African Pump Systems Development Association (SAPSDA) Members: 16
The South African Valves and Actuators Manufacturers’ Association (SAVAMA) Members: 16
ORGANOGRAM 17
COMPANY PROFILES 18
AINSWORTH ENGINEERING (PTY) LTD 18
BRAYBAR PUMPS (PTY) LTD 19
DISTRIBUTION & WAREHOUSING NETWORK LTD 20
DYNAMIC FLUID CONTROL (PTY) LTD 24
ENSERVE ENGINEERING SERVICES (PTY) LTD 26
FRANKLIN ELECTRIC (SOUTH AFRICA) (PTY) LTD 28
GRUNDFOS (PTY) LTD 30
GUNRIC VALVE MANUFACTURING (PTY) LTD 32
INGERSOLL-RAND COMPANY SA (PTY) LTD 33
KSB PUMPS & VALVES (PTY) LTD 35
PAMODZI INDUSTRIALS (PTY) LTD 37
PIPE MAKERS (PTY) LTD 39
PREMIER VALVES (PTY) LTD 40
PSV HOLDINGS LTD 41
SCAMONT ENGINEERING (PTY) LTD 43
SULZER PUMPS (SA) (PTY) LTD 44
WALTER MEANO ENGINEERING (PTY) LTD 46
WATSON-MARLOW BREDEL (PTY) LTD 47
WEIR MINERALS AFRICA (PTY) LTD 48