South African Foundry Market                   Adrie El Mohamadi                2nd BRICS Foundry Forum                   ...
Presentation Outline1. South African overview2. Foundry industry structure in    South Africa3. NFTN looking ahead  Slide 2
South Africa                                       10%                                               59 million           ...
Contribution to the GDP in South Africa             Province                            Contribution to GPD ‘07           ...
Industry structure by foundry type                                    No. of         No. of         No. of         2011 v/...
Estimated annual production by metal type                           Est. annual      Est. annual      Est. annual      Gro...
Markets served by the SA foundry industry                                           • Export and local markets            ...
Main casting processes used in foundries                                       No. of foundries using the     Process Type...
Employment in the foundry sector• Estimated no. of direct employees in 2011 – 11,600  - 80% of employees are previously di...
Key roles and activities of various stakeholders            in the innovation system                            Innovation...
SA foundry innovation system                Innovation Capability at Firm Level                              FOUNDRIESTech...
National Foundry Technology NetworkNFTN is the culmination of a significantgovernment and industry association-ledeffort t...
NFTN Delivery Model• Activities that targets the improvement of individual  foundries and their immediate environment (fir...
Types of South African FoundriesType 1 companies                   Type 2 companies  Medium- to large size              Sm...
NFTN Areas of foundry supportKey challenges identified by industry   NFTN support areas1.Skills and training (HCD)        ...
Human Capital Development                  Students currently in Germany on a collaborative Masters                       ...
Waste activity• The compilation of a guideline document for use by  Foundries, discussing requirements in terms of the  Na...
Waste activity• The compilation of a guideline document for use by  Foundries, discussing requirements in terms of the  Na...
Competitive Improvement             NFTN                                                  Satisfaction          Benchmarki...
Demand                                               focused                                                Baseline      ...
Thank you                   Adrie El Mohamadi           National Foundry Technology Network                   Tel: +27 12 ...
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  • NFTN mobilisation support programme. This scheme is intended to support non-routine competitiveness improvement or development projects within individual foundries through a partial financial contribution by the NFTN to the cost of the projects. Note that the scheme is NOT applicable to routine tests or analysis but for matters such as - problem solving- new product development - casting simulation- productivity improvement.
  • south african foundry market

    1. 1. South African Foundry Market Adrie El Mohamadi 2nd BRICS Foundry Forum Beijing, China 9 May 2012Slide 1
    2. 2. Presentation Outline1. South African overview2. Foundry industry structure in South Africa3. NFTN looking ahead Slide 2
    3. 3. South Africa 10% 59 million 1% Population 6% Province 9% (2011 est.) Gauteng 11,328,203 11% 8% Kwa-Zulu Natal 10,819,130 Eastern Cape 6,829,958 30% Limpopo 5,554,657 Western Cape 5,287,863 Mpumalanga 3,657,181 14% North West 3,253,390 11% Free State 2,759,644 Slide 3 Northern Cape 1,096,731
    4. 4. Contribution to the GDP in South Africa Province Contribution to GPD ‘07 Gauteng 33,5% Kwa-Zulu Natal 16,2% Western Cape 14,5%Geographical location of foundries in South Africa No. of foundries No. of foundries No. of foundries % of totalProvince ‘03 ‘07 ’11 foundries ‘11Gauteng 110 108 97 54%Kwa-Zulu Natal 20 26 24 13%Western Cape 26 16 15 8%Eastern Cape 16 10 10 6%Free-State 10 7 6 3%North-West 10 9 5 3%Northern Cape 6 3 3 2%OtherSlide 4 15 15 18 10%
    5. 5. Industry structure by foundry type No. of No. of No. of 2011 v/s foundries in foundries in foundries in 2007Foundry Type ‘03 ‘07 ‘11 change in %Ferrous (Iron and Steel) 110 110 67 -39%Non-Ferrous (Aluminum, Brass &Zinc) 117 119 70 -49%High Pressure Die-casters Significant decline36 numbers 32 in since 2007 32 0% •Due to:Mixed Metal 35 35 •difficult economic conditions 34 -3% •consolidation, mergers & acquisitionsInvestment Casting 7 4 4 0%Art Foundries 13 12 12 0%Total number of Foundries 213 211 184 -13% Slide 5
    6. 6. Estimated annual production by metal type Est. annual Est. annual Est. annual Growth 2011 production ‘03 production ‘07 production ’11 v/s 2007Metal Type (tons) (tons) (tons) (%)Non-Ferrous 84,000 97,800 91,400 -7%Aluminum 66,000 77,800 74,600 -4%Brass is highly concentrated: 9,000Industry 8,200 8,400 2% •Top 3 non-ferrous foundries = 67% of productionBronze 6,000 7,600 5,700 -25% •Top 11 ferrous foundries = 62% of productionZinc 3,000 4,200 2,700 -36%Ferrous 422,000 562,600 479,950 -15%Grey Iron 110,000 147,000 170,200 16%Ductile Iron 100,000 86,000 123,800 44%Other cast iron 85,000 145,600 61,250 -58%Steel 123,000 179,100 118,000 -34%Stainless steel 4,000 4,900 6,700 37%Total annual production 506,000 660,400 571,350 -13% Slide 6
    7. 7. Markets served by the SA foundry industry • Export and local markets Agriculture 5%Construction • Highly Competitive environment 5% Automotive 33% • Competing with the rest of the world GeneralEngineering 22% Mining 33% Slide 7
    8. 8. Main casting processes used in foundries No. of foundries using the Process Type process (%) Sand Bonded sand 44% Green sand 34% Shell 14% Permanent Mould Gravity 21% Low Pressure 5% High Pressure Die-casting 7% Other 3% Gauteng Foundry Type No. of foundries No. of foundries (%) Production 23 24% Jobbing 50 52%Slide 8 Prod. & Jobbing 24 25%
    9. 9. Employment in the foundry sector• Estimated no. of direct employees in 2011 – 11,600 - 80% of employees are previously disadvantaged individuals• Additional 12,400 admin & management staff are employed by foundries• Estimated no. of indirect employees 4,000 - 180 – 200 supplier companies 15% Total of 24,400 30% Melters Moulders Patternmakers Slide 9 55% Shop-floor analysis
    10. 10. Key roles and activities of various stakeholders in the innovation system Innovation Capability at Firm Level Creativity of Employees at all Levels Innovation-friendly organizational structure Networked Research and DevelopmentTechnology-related Education & Training Interaction System Institutions creates an Applied Research & Development Primary Education Research & Development Financing effective Technology-related Secondary Education Technology Transfer & Extension Skills Development for the Workplace Testing, Measuring, Quality Control & innovation Higher Education, especially in Standards Certification system EngineeringIntellectual Property Rights Protection` Political, Legal, Regulatory and Macro- Economic Framework that stimulates learning and innovativenessSlide 10
    11. 11. SA foundry innovation system Innovation Capability at Firm Level FOUNDRIESTechnology-related Education & Training Institutions System Technological Capabilities emerges from interaction Political, Legal, Regulatory and Macro- Economic Framework Slide 11
    12. 12. National Foundry Technology NetworkNFTN is the culmination of a significantgovernment and industry association-ledeffort to develop a globally competitive SouthAfrican Foundry industry through appropriateskills training, technology transfer and diffusion ofState-of-the-art technologies Slide 12
    13. 13. NFTN Delivery Model• Activities that targets the improvement of individual foundries and their immediate environment (firm level)• Activities that targets an impact on the foundry industry as a whole (system level) Slide 13
    14. 14. Types of South African FoundriesType 1 companies Type 2 companies Medium- to large size Small to medium size Public companies or Family-owned business subsidiaries of multinational Reliance on experience / tacit corporations knowledge and trial-and-error Technologically sophisticated Relatively outdated equipment processes Updated equipment Slide 14
    15. 15. NFTN Areas of foundry supportKey challenges identified by industry NFTN support areas1.Skills and training (HCD) 1. Human Capital Investment2.Environmental and waste management3.Energy management 2.Cleaner production4. Raw material input5.Localisation and market development 3.Expansion of foundry industry6.Capital and investment7.Technology, Innovation and 4. Science, Technology and InnovationCompetitiveness 5. Competitive Improvement Slide 15
    16. 16. Human Capital Development Students currently in Germany on a collaborative Masters programme Placements of Interns within the foundries Technical training courses are offered on specialised areas within the foundry industry Under graduate degrees are being offered relevant to the foundry industry by a number of our Higher Education institutions – with specific mention to UJ – Foundry specific Second national training centre is being planned and will be launched in March 2013 3 x curricula has been developed for Foundry melter, moulder and engineering patternmaker to train artisans Skills programmes are being presented to foundry employees to improve the skills level within foundriesSlide 16
    17. 17. Waste activity• The compilation of a guideline document for use by Foundries, discussing requirements in terms of the National Environmental Management Act (Act 107 of 1998) and the National Environmental Management: Waste Act (Act 59 of 2008)• The compilation of a motivational document for adjustment of environmental legislation pertaining to foundry operations in terms of the National Environmental Management: Waste Act (Act 59 of 2008) Slide 17
    18. 18. Waste activity• The compilation of a guideline document for use by Foundries, discussing requirements in terms of the National Environmental Management Act (Act 107 of 1998) and the National Environmental Management: Waste Act (Act 59 of 2008)• The compilation of a motivational document for adjustment of environmental legislation pertaining to foundry operations in terms of the National Environmental Management: Waste Act (Act 59 of 2008) Slide 18
    19. 19. Competitive Improvement NFTN Satisfaction Benchmarking DST TAP NFTN CII survey • First NFTN CII • Conducted in • Took place • Conducted in is the Vaal 2009 during 2009/10 2011 Foundry Initiative • 103 foundries • 26 Foundries • Overall positive in total were selected response • Also targeting participated Valve • Suppliers to • Lessons learnt Cluster, M&HV• Opportunity for SOEs incorporated Cluster, KZN & foundries to get into the NFTN Automotive a comparison • CSIR & Mintek CII cluster were the implementing partnersSlide 19
    20. 20. Demand focused Baseline ID of longer term Assessment Hosting R&D opportunities Determine market For non-routine services such as:institutionopportunities and - Problem solving such as VUT performance - New product development specifications Hosting institution - Casting simulation trials On going required to is M&E - Productivity improvement appoint a Identify the management Foundry performance gaps committee & use Cluster Specialised, re Access and build on the to interns & Support cognisedacademic institutions NFTN supplier SAIF skills Initiative Access to & subsidised database development mobilisation fund mandate Common foundry problems such as Mobilise specific Energy, Waste public support management etc. Identify the possible addressed skills development Agree on technical collectively needs within cluster assistance &Slide 20 implementation
    21. 21. Thank you Adrie El Mohamadi National Foundry Technology Network Tel: +27 12 841 2127 Adrie.elmohamadi@nftn.co.za www.nftn.co.zaSlide 21

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