7 th BRICS FOUNDRY FORUM

Transcription

1 South African Institute of Foundrymen State of the Industry Presentation to: 7 th BRICS FOUNDRY FORUM 14 th March 2017 Slide 1 John Davies (SAIF - CEO)

2 Presentation Outline 1. The Role of SAIF 2. Foundry Industry in South Africa Skills Development, Training and Education 4. Industry Challenges 5. Conclusion Slide 2

3 1. The Role of SAIF Listen to and respond to the industry needs To be the voice of the industry Facilitate interventions to improve competitiveness Takes the lead in some interventions Provides feedback to industry members Disseminates technical and other information Focusses on skills development, training and education Promotes research in foundry processes and practice More than 80% of manufactured products contain castings! Slide 3

4 Slide 4 CSIR

5 Foundry Industry in South Africa Number of foundries has reduced to 165; 30% fewer than 2000 Total tonnage in 2015 of 430,300 tons is 35% lower than 2007 and 0,4% of world total South Africa is ranked the 19 th largest producer of metal castings in the world A few big foundries (more than 500 people), but many small foundries (less than 20 people) Several foundries only produce for their own use Adding value through design or machining and assembly is evident in some foundries Two thirds of foundries are located in Gauteng province Slide 5

6 Estimated Annual Production by Metal Type Metal Type / 2016 Aluminium 66,000 77,800 24,000 Brass 9,000 8,200 Copper based Bronze 6,000 7,600 7,000 Zinc 3,000 4, Grey Iron 110, , ,000 Ductile Iron 100,000 86,000 41,200 Other Cast Iron (White Iron) 85, , ,000 Steel 123, ,100 85,000 Total annual production 506, , ,300 Slide 6 Metal Casting Tonnage World Totals = ,257 tons South Africa Tonnage = 0,4%

7 Industry Structure By Foundry Type Foundry Type No. of foundries in 2011 No. of foundries in 2016 Ferrous (Iron and Steel) Non-Ferrous (Aluminum, Brass & Zinc) Sand, Gravity, Low Pressure High Pressure Die-casters Investment Casting 4 4 Total number of Foundries v More than 50 foundries are making pump / valve components v There are an additional 13 art casting foundries and 11 spin casting operations Slide 7

8 Markets served by the SA foundry industry Infrastructure 2% Other 2% Agriculture 3% Railways 6% Mining 32% Manufacturing 20% Slide 8 Automotive 35%

9 Employee Structure Employee Structure % Administration 11,4 Technicians / Engineers 6,2 Workers 82,4 Tertiary Education Institutions No Universities offer Foundry Engineering Two have Foundry Technology Courses Six offer Metallurgy / Material Science Slide 9

10 Employment in the Foundry Sector Estimated number of direct employees in ,000-80% of employees are previously disadvantaged individuals Estimated number of indirect employees 3,200 (Adding Value to Products in machining, sub-assembly and final assembly) Skill Base 15% Total of 12,200 30% Melters Moulders Patternmakers Slide 10 55% Shop-floor analysis

11 3. Skills Development, Training and Education Apprentice Training Gauteng Foundry Training Centre (GFTC) Opened in 2014 near Johannesburg Patternmakers, Melters and Moulders are trained for 3 years Industry support for specialized subjects and on the job work experience GDED, NFTN and EEC Partnership Slide 11

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14 Short Course Training (Worker Training) Funded by the National Foundry Technology Network (NFTN) The SAIF has developed technical training material in many fields of foundry technology including; Melting & Metallurgy Sand & Moulding Sands Die Casting Cores & Core making Fettling Quality Control Supervisory Management Practical Sand Testing Heat Treatment Stainless Steel Casting Non Destructive Testing Casting Design & Methods Productivity & Production Planning Customized training is also offered for on site presentation Courses are for foundry workers and held outside normal working hours More than 2500 workers have attended at least one module Slide 14

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16 New Generation Foundry Forum Funded by NFTN Targets young engineers in foundries Introduces new technologies Casting design, simulation and 3 D printing Problem solving techniques and management principles in marketing and finance Slide 16

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18 Metal Casting Technology Station Funded by Department of Science and Technology Assist in transfer of Technology to Foundries Testing of Sand and Cast Metal Samples Design and Simulation Training and Education Special focus on very small foundries Co-hosted the Research and Innovation in Foundry Technology (RIFT) project with CPUT funded by the Department of Science and Technology (DST) University of Johannesburg Offers foundry courses as part of the engineering curriculum Collaborates with SAIF and provides support for the short course programme Slide 18

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20 Vaal University of Technology Offers foundries assistance in design, simulation and 3 D printing of moulds and cores A partner in the casting simulation network project Slide 20

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22 Other Institutions (MINTEK, CSIR, Universities) ALL assist with research and development in some aspect of metal casting technologies or the training and education of technicians, technologists and engineers Department of Higher Education Through the Metals and Engineering and Related Industries Sectorial Training Administration (MERSETA), assists in the development of training programmes and the training of apprentices The Quality Council for Traders and occupations is the quality council that oversees the design, implementation, assessment and certification of occupation including trades Slide 22

23 National Cleaner Production Centre Presented the Expert training programme in energy and waste management to a group of foundrymen in 2016 Department of Health / Energy Provided training via the International Atomic Energy Agency in the regulation and control of radiated materials found in metal scrap Slide 23

24 Challenges facing the SA Foundry Industry Import leakages and reduction of orders due to slow economic growth. Lack the volumes to achieve the manufacturing economies of scale. Rising Energy Costs. Low Labour Productivity and Labour unrest. Lack of Skills development and training. Compliance with Environmental Regulations. Aged infrastructure for capital equipment parts. (average age - 17 years) High capital investment required to become world class. Limited Access to Capital. High Transport and Logistics Costs. Recent Technological Developments Require Special Skills. Foundry Environment is not attractive. Low capacity utilization at most plants. Slow pace of transformation Slide 24

25 Opportunities for the SA foundry industry Availability of raw materials Relatively competitive input costs such as rental, energy, labour (although these have been increasing); Pockets of excellence in terms of manufacturing quality; A high level of flexibility and engineering versatility, i.e. small production runs, mixed process and mixed metal production; Spare production capacity the foundry industry on average operates at utilization rates of 70% or less, based on a single shift scenario. Localization and designation The industry is well positioned to grow as a result of these programs. Capital Investment assistance from government Sector Specific Slide 25

26 Conclusion The South African Foundry Industry is facing strong headwinds, but with assistance from the state and other institutions several opportunities can be realised: o Improved Levels of Transformation o Improvement of Skills and Technical Knowledge o Increased Localisation and Import Replacement o Foundries that are environmentally compliant o Increased use of new Technologies o Become increasingly more efficient and thus more cost competitive Slide 26

27 Foundry Operations at the beginning of the 19 th Century Slide 27

28 Slide 28 CSIR

29 Slide 29 THANK YOU