2. 2015 TRADE FAIR EXPERIENCE
Presentation will be presented by:
Jaco Breytenbach – IIW, Cswi
Isaac Mogoba - Metallurgist
Paul Malone - Metallurgist

3. THOS BEGBIE INTRO
 Thos Begbie & Company was established in 1887. We produce
components for the Pyro metallurgical Industry. Services includes:
 Sales & Marketing
 Pattern Making
 Casting Simulation
 Foundry,
 Fettling
 Machining
 Inspection & Testing.
TOPICS
 THE TRADE FAIR
 SWOT ANALYSIS
 COMPETITOR AWARENESS
 SA SWOT ANALYSIS
 EUROPEAN FOUNDRY COMPARISON
 EMPHASIS ON SKILL

4. TRADE FAIR
Held in Messe Düsseldorf Germany
4 exhibitors in 1:
GIFA
METEC
THERM PROCESS
NEWCAST
78000 visitors from 120 Countries
2214 Exhibitors
Held every 4 Years
13th Anniversary

5. TRADE FAIR
GIFA
 Experts from ferrous & non-
ferrous, metal casting
industries.
NEWCAST
 Visitors from engineering,
apparatus engineering and tool
making.
METEC
 Visitors from iron and steel
production, plant engineering,
construction apparatus,
engineering and tool making.
THERMPROCESS
 Experts from automotive
and gear manufacturing.

6. TRADE FAIR
 A Main user requirement of new technology is resource & energy
efficiency.
 Companies presented their innovative technologies and thus could get
in direct contact to potential customers from all over the world.
 The fair was a complete success for the promoting of various
associations.
 The demand for innovative products as well as the atmosphere were
promising.
Feedback from Organizers:

7. STRENGTHS
TRADE FAIR SWOT ANALYSIS
The Fair provides a marketing platform to the
majority of the World in the related sectors.
Provides and Identifies a comprehensive
summary of new Technology and Sufficient
Systems.
Show casts participating Companies Products,
Services and Systems to the world.

8. WEAKNESSES
TRADE FAIR SWOT ANALYSIS
It is not well marketed in Developing Countries like
ourselves.
Due to cost related aspects attendance and
participation from Developing Countries are limited.
The fair only takes place over 5 days which do not
allow sufficient time for a complete evaluation of all
stands.

9. OPPORTUNITIES
TRADE FAIR SWOT ANALYSIS
Market competitiveness and trends can be studied
and the necessary actions can be detriment
By understanding these shifts, roles, and influence
points, both incumbents and new entrants can give
themselves the tools to successfully navigate the
new landscape of foundries.
Companies presented their innovative technologies
and thus could get in direct contact to potential
customers from all over the world.

10. THREATS
TRADE FAIR SWOT ANALYSIS
Competitors can scrutinize each others Products
and Services if presented at the Fair.
Established Customers can make direct
comparisons between Suppliers or manufacturers.

11. TRADE FAIR
“The Fair has helped us to understand the requirements even better, and
to identify the market trends”
“The atmosphere was positive and the visitors at the trade fair showed
very keen interest in the technical trends in the industry and in the
optimisation of their processes”
“World leaders in foundries and metal processing enjoyed a demanding
presence staking a claim that they are here to stay”
“The actual exhibition of processes was a big eye opener for us, realizing
that most of the processes followed in South Africa are outdated”
Comments from visitors:

12. There was many new and improved existing technologies , here
are a few reflections:
TRADE FAIR
 Pneumatic Hammers
Heavy duty pneumatic hammers for the
remove of risers with contacts up to 10" in
contact diameter. Construction is substantial
and the unit is MADE IN THE USA
HAMMER IT!!!!! KNOCK OFF RISERS WITH THE PULL OF THE TRIGGER.

13. TRADE FAIR
 3D Geometry Scanning
Delivers three-dimensional
measurement data and analysis
for industrial components such
as sheet metal parts, tools and
dies, moulded parts, castings,
and more. Reverse engineering
can be done with equipment like
this.
CAD comparison, mould can be scanned
first then the final casting, it can then be
digitally fitted to manage things like
contraction and machining allowances. It
also measures surface finishes. Inspection
reports are generated instantly after Scan
is complete.

14. TRADE FAIR
 Sand Reclamation Plants
China`s current average sand reclamation ratio: sodium silicate sand ≥60%, Alkaline
phenolic resin sand≥70%, furan resin-sand ≥90%, clay sand≥95%.

15. TRADE FAIR
 3D Mould Printing
3D printing sand moulds and cores
directly from CAD data eliminates
the need for physical patterns and
pattern storage, since parts can be
stored digitally. Design freedom is
the largest advantage of the
process - even very large and
complex mould and core designs
can be realized. Uses Silica sand
and furan binder it is considered a
“no bake” product, which means
that printed silica sand moulds and
cores are immediately ready for
casting.
Build volume up to 2200(w) X
1200(d) X 700(h)mm at a build
speed up to 14 ft³/h.

16. TRADE FAIR
53.7
31.5
7.4
3.7
1.9 1.9
0.0
10.0
20.0
30.0
40.0
50.0
60.0
Don’t Know / Don’t
Attend
Local Trade Events International Trade
Events
Seda Events Business Expo's Conferences
Trade Events
Figure indicates the percentage gap in the awareness of trade events in South Africa
Source: dti SEDA

17. TRADE FAIR
The Trade Fair was an eye opener on how technology has
progressed.
Countries like China and India had a massive presence at the
Trade Fair.
For South Africa to stay competitive:
Introduce new Technology
Improve Processes
Improve Efficiency
Upskill
Quality Standards
Provide the opportunity to compare used Standards in
South Africa to the current and future International norm of
acceptance.

18. TRADE FAIR
Other South African Companies which where present:
SCAW METALS,
SAIF,
Lauds Foundry Equipment,
AFSA,
FOCHEM
PROCON AFRICA
 And 30 Others…
0.5% OF THE EXHIBITORS WHERE SOUTH AFRICAN BASED
Source: Casting sa vol 16 #1

19. TRADE FAIR
Where were:
COLUMBUS STAINLESS,
ATLANTIS FOUNDRIES.
ARCELORMITTAL,
SAMANCOR,
STELOY,
CISCO.

20. This Chart shows that the major Countries produce 80% of all world
castings. The rest of the world produce 20% and South Africa produce
0.43%. Thus the small amount of castings produced by South Africa are
vulnerable towards massive markets like China.
COMPETITOR AWARENESS
Source: AFS 46th
Census of World
Casting Production
2012

21. COMPETITOR AWARENESS
This chart shows the Countries with the most Foundries in the world,
compared to South Africa. Take note of the quantities stipulated on the
vertical axis.
Source: AFS 46th
Census of World
Casting Production
2012

22. COMPETITOR AWARENESS
The following indicates the average amount of cast tonnes per foundry
produced by the applicable Country. South Africa produce a moderate
2361 tonne per foundry.
Source: AFS 46th
Census of World
Casting Production
2012

23. COMPETITOR AWARENESS
TOP 3 & South Africa, Total Castings Produced per Annum:
WORLD = 103 229 774 t
CHINA = 44 500 000 t
USA = 12 250 000 t
INDIA = 6 700 000 t
SOUTH AFRICA = 375 000 t
THE STATISTICS:
Source: AFS 48th
Census of World
Casting Production
2014

24. COMPETITOR AWARENESS
 The Chinese government plans
to invest £237 billion in industry
over the current 5-year plan to
improve manufacturing
efficiencies.
 The highest education/skill and
consultancy in modern
techniques in manufacturing and
engineering.
 Surveys shows that China is
viewed as having a mainly
positive influence in the world by
a majority or plurality of citizens
in 14 countries.
 On time delivery & costs.
 They have a strong
government investment
programme.
 largest Information and
Communications Technology
(ICT) market in the world.
 Abundance of electricity,
nuclear installed capacity in
China is 58GW by 2020, with
a further 30GW planned. 26
nuclear power reactors are
under construction in addition
to the 22 already in operation.

25. According to the China Foundry Association 2013, foundry equipment
demand in the future:
COMPETITOR AWARENESS
Advanced and efficient automatic mould making, core
making and cleaning equipment
Efficient and energy-saving melting, sand processing and
reclamation equipment
On-site application of various kinds of robots
Aluminium alloy melting and die-casting equipment
De-dusting equipment
Online casting detection, testing and analysing devices

26. Joint Venture with China:
 exploit the market knowledge,
 manufacturing capability
 the technology,
 manufacturing know-how and
 marketing experience of the foreign partner.
Due to the overgrowing population this trend is usually followed to ensure
future organizations can be successfully established in China securing
employment and wealth for their people.
Just one of the reason that the Chinese highly invest in their educational sector.
COMPETITOR AWARENESS

27. COMPETITOR AWARENESS
Intellectual Property (IP):
China uses a ‘first-to-file’ system for trademarks. You may lose legal
protection if a similar mark has already been registered within China.
Therefore, you must register your trademarks in China before entering the
market. This is one of their weaknesses, the chances are good that they
will not protect your IP`s.

28. USA vs CHINA

29. We where fortunate to spend a day at a well known foundry in
Netherlands and this was our observations:
EUROPEAN FOUNDRY ASSESSMENT
• Motivated and proud employees.
• Employees gets rotated to ensure skill level throughout the organization.
• Self-motivated following procedures.
• Selling a product not a process 3rd Party inspectors not allowed, the
product can be tested after manufacturing.
• Emphasis toward Quality and Safety, each employee takes responsibility.
• Specialists in their field do not allow other outside influence jeopardise their
production processes.
• With a cast capacity of 55 ton Non-Ferrous and 13 ton Ferrous the whole
foundry gets operated by only 15 employees.
• Low reject and nonconforming product rate.
The most noticeable thing was the passionate attitude of the employees.
The pride in what they do and the success of each casting they made. The
great care and precision, together with their skill towards manufacturing
these medium to large castings. That makes Europe the trend setters in the
foundry industry today.

30. WEAKNESSESSTRENGTHS
SA SWOT ANALYSIS
 South Africa has world-class
infrastructure, exciting
innovation, research and
development capabilities and
established foundries.
 South Africa is remarkably well-
endowed with metals.
 South Africa is also one of the
highest ranking developing
economies and surpasses
countries such as Hungary,
Italy, Brazil and Thailand.
 Viewed as a percentage of production
costs, labour costs in South Africa are
the highest among BRICS countries at
33.5 percent.
 By contrast, electricity costs have been
raised by over 170% in South Africa,
and this is predicted to continue to
escalate at more than double the
forecasted inflation rate.
 In 2004 unskilled and semiskilled
labour accounted for 63% of total
employment in metal products.
 In 1982 there were 13 000 artisan
apprentices registered, but this figure
had dwindled to only 2 000 in 2003,
 South Africa only beneficiates 15% of
its iron ore and 3% of its chrome into
finished steel products,Source: SA STATS & SEDA

31. THREADSOPPORTUNITIES
SA SWOT ANALYSIS
 The future of the metallurgical
sector in South Africa lies in
the country’s ability to become
a stable business destination,
globally competitive and
beneficiate locally produced
products.
 The fact is that we as South
Africa manufacture more now
than we ever have in our
history the future of our foundry
sector should be about rapidly
advancing technology.
 South Africa had about 450
foundries in the 1980s and just
over 200 in 2003. Between 2007
and 2011 another 13% closed and
employment in the industry
declined by 30%.For instance, in
2012 China had more than 30 000
foundries
 Our domestic market is vulnerable
to imports from China, India, Brazil
and other countries which offer
much higher incentives and
protection to their manufacturers.
 Treads faced by the foundry
industry include international
competition due to continuous
technological improvements and
cost-competitiveness.

32. EMPHASIS ON SKILL
We once had 150 training centres for teachers we no only have 25. WE CAN
HAVE THAT AGAIN , only if foundries and institutions work together and
can come up with a strategic training plan for this and other sectors.
We must know that all the experience needed to do the job is nothing without
the correct educational background, because you could have been doing it
wrong all these years with out knowing the theory and concepts that go with
the job.
In South Africa the attitude that sees poaching rather than training as the
solution to skills needs is linked to the size and system constraints of firms.
Source: SA STATS & SEDA

33. EMPHASIS ON SKILL
Skills are critical for the growth and expansion of general engineering and
foundry skill, however, does not exist outside the context of the prevailing
technologies. Many of the machines being utilised in the industry are operated
through numerical control technology. Interviewees emphasized the importance
of computerisation for the industry; one employer described computerization as
the ‘backbone of modern industry.
Scenario putting stress on cost and on time delivery which we are starting to
face today: work is contracted to firms in the sector, but the client is required to
employ a number of additional personnel to oversee the work that is assigned to
the organisation, to ensure the required amount of skill and know how are
implemented on basic practices thus overcoming potential setbacks.
Not all foundries situated in South Africa acknowledge the fact that skill comes
from comprehensive training, and that lower skill level jeopardise work ethic,
sufficiency , problem solving , Higher Quality Product , on time delivery , scrap
ratio , cost saving , higher profit margins & a safer work environment.

34. EMPHASIS ON SKILL
South Africa’s international manufacturing output, at a percentage of total
world manufacturing output, decreased from 0.61% in 1990 to 0.5% in 2010.
This indicates the need to strengthen SA’s manufacturing position, given the
potential for employment creation, economic growth and export earnings.
The New Growth Path aims at creating 5 million new jobs by 2020. However,
this seems very unlikely given the current structure of the economy, including
supply side constrains (power, rail networks and levels of education amounts
others).
Lets stop blaming and start building, the warning lights are flashing we as
South Africa must take hands. The future are in our hands , lets stop this day
to day concept and plan for tomorrow.
The world are leaving South Africa behind, Start TRAINING now for
tomorrow. We can once again be powerhouse by leading by example in
the foundry industry.
Source: SA STATS & SEDA

35. ALL SA FOUNDRIES
 South African Foundries should work together, support local product !!!

36. We as Thos Begbie would like to Thank the South African Institute of Foundrymen for the
opportunity to provide our observations through this presentation to other South African
Foundries. We believe that this awareness will have positive endeavours for this sector.