South African Institute of. Foundrymen. 6 th BRICS FOUNDRY FORUM. The Foundry Industry in South Africa. 16 th May 2016 John Davies SAIF CEO.
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1 South African Institute of 6 th BRICS FOUNDRY FORUM Foundrymen The Foundry Industry in South Africa 16 th May 2016 John Davies SAIF CEO Slide 1
2 PRESENTATION OUTLINE 1. Introduction to SAIF 2. Status of the South African Foundry Industry 3. Interventions by State Departments in Support of the Foundry Industry 4. International Co-operation 5. Conclusion and Thanks Slide 2
3 1. The South African Institute of Foundrymen Constituted in 1938 as a branch of the Institute of British Foundrymen (IBF) now (ICME) Established as the SAIF in 1964 Is a non profit company Focus on skills development, training and education Membership 186 of which 89 are companies Represents the Voice of the Foundry Industry To improve the competitiveness of the South African Metal Casting Industry. Generating sustainable growth and employment opportunities in the manufacturing sector Slide 3
4 KEY PARTNERSHIPS The National Foundry Technology Network (NFTN) The Aluminium Federation of South Africa (AFSA) The Metal Casting Technology Station (MCTS) hosted and the University of Johannesburg The Department of Science and Technology (DST) Through the agencies of the CSIR and Mintek to assist industry and conduct research The University of Johannesburg, Vaal University of Technology, Cape Peninsula University of Technology and the Tshwane University of Technology The BRICS Foundry Association Slide 4
5 2. SOUTH AFRICAN FOUNDRY INDUSTRY The industry has contracted since 2007 Output in 2015 of 374,700tons is down from 660, 400 in 2007, or 43 percent lower 170 Production Plants in SA Down by 36 percent since 2007 Big plants (more than 1000 people) to very small (less than 20 people) Some in house foundries producing only for their own use Iron, Steel, Aluminium, Zinc, Bronze and Special Alloy Castings are made Added Value: Machining, Coating, Assembly is evident in some foundries Spread all over the country: Gauteng, KZN, W/Cape and E/Cape More than 80% of manufactured products contain castings! Slide 5
6 THE STATUS OF THE FOUNDRY INDUSTRY IN SOUTH AFRICA Province Population (2014 est.) % South Africa Gauteng 13,200,300 24,0% Kwa-Zulu Natal 10,919,100 19,9% Eastern Cape 6,916,200 12,6% Limpopo 5,726,800 10,4% Western Cape 6,200,100 11,3% Mpumalanga 4,283,900 7,8% North West 3,707,000 6,7% Free State 2,817,900 5,1% Northern Cape 1,185, % Slide 6 Total 54,002, %
7 Contribution to the GDP in South Africa Province Contribution to GDP 2015 Gauteng 34,7% Kwa-Zulu Natal 15,8% Western Cape 14,0% Slide 7 Geographical location of foundries in South Africa Province No. of foundries 2015 % of total foundries 2015 Gauteng % Kwa-Zulu Natal 20 12% Western Cape 14 8% Eastern Cape 8 5% Free-State 5 3% North-West 4 3% Northern Cape 3 2% Mpumalanga 2 1%
8 Industry Structure By Foundry Type Foundry Type No. of foundries in 11 No. of foundries in v/s 2011 change in % Ferrous (Iron and Steel) % Non-Ferrous (Aluminum, Brass & Zinc) Sand, Gravity, Low Pressure % High Pressure Die-casters % Investment Casting 5 5 0% Total number of Foundries % v There are 44 foundries making castings in steel and / or stainless steel, of which 3 are investment casting foundries v There are an additional 13 art casting foundries and 11 spin casting operations Slide 8
9 Estimated Annual Production by Metal Type Metal Type Est. annual Production 03 (tons) Est. annual production 07 (tons) Est. annual production 12 (tons) Est. annual production 13 (tons) Est. annual production 14 (tons) Est. annual production 15 (tons) Aluminum 66,000 77,800 21,000 22,000 22,000 22,000 Brass 9,000 8,200 Copper Based Bronze 6,000 7,600 14,300 9,100 8,500 8,500 Zinc 3,000 4,200 1, Grey Iron 110, , , , , ,000 Ductile Iron 100,000 86,000 59,000 47,000 61,500 63,000 High Cr White Iron 85, ,600 54,000 28,500 40,500 42,000 Steel 123, , , , ,000 93,000 Stainless steel 4,000 4,900 5,800 6,500 6,000 6,000 Total annual production 506, , , , , ,700 v Note: All the above exclude grinding media produced by Slide 9 SCAW Metals Goup
10 Markets served by the SA foundry industry Other 5% Foundry markets Infrastructure 5% Railways 10% Agriculture 5% Automotive 25% General Manufacturin g 25% Mining 25% Slide 10
11 Employment in the Foundry Sector Estimated no. of direct employees in ,000 Estimated number of indirect employees 4,000 (Adding Value to Products) Skill Base 15% Total of 13,000 30% Melters Moulders Patternmakers Slide 11 55% Shop-floor analysis
12 Foundry Industry Profile Challenges: Industry is in decline High levels of imported castings and products Lack the volumes to achieve manufacturing economies of scale Aged Infrastructure for capital equipment parts High levels of capital investment needed Low capacity utilization at many foundries Difficulties in becoming environmental compliant Limited use of computational design software Slide 12
13 3. Interventions by the Sate in Support of The Foundry Industry National Foundry Technology Network (NFTN) Formed 2008 to improve the global competitiveness and transformation of the Foundry Industry Funded by the Department of Trade and Industry (DTI) Focused interventions in Skills Development, Technology Transfer and Competitiveness improvements. Slide 13
14 Slide 14
15 Slide 15 CSIR
16 Slide 16 CSIR
17 Slide 17
18 Interventions Human Capital Development Concern: Foundries do not have the required skills to grow and capitalize on opportunities Challenges: South African foundry skills lag other BRICS countries and the world Optimum training model for key skills. Skills Upliftment programs: Artisans: Melter, Moulders, Patternmakers Gauteng Foundry Training Centre (GFTC) Foundry Skills: Workers SAIF Partnership in Training Professional Skills: Technical and Engineers New Foundry Generation Forum Slide 18
19 Slide 19
20 Slide 20
21 Interventions Technology Transfer Partnership with Germany and MCTS to improve energy and material efficiency Developed simulation software for High Chrome White Iron Castings Improved re-use and reclamation of foundry sand and investigated recycling opportunities Membership or WFO and hosting of WFO Technical Forum in March 2017 Slide 21
22 Interventions Competiveness Improvements Evaluate opportunities in foundries for reduction in energy use. (Including alternative sources = solar energy) Assistance to obtain ISO 9001 and other quality accreditation. Assistance to foundries to comply with environmental standards for emissions and spent sand disposal Assisted in new product development with front end engineering tools Slide 22
23 3.2 Casting Simulation Network Partnership between Technology Localization Implementation Unit (TLIU), The Vaal University of Technology (VUT), and Private Sector Company Ametex representing MAGMA To assist foundries to use solidification simulation technology 26 Projects completed with 18 foundries Part subsidisation by TLIU Slide 23
24 Slide 24
25 3.3 Metal Casting Technology Station University of Johannesburg 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 Slide 25
26 3.4 Vaal University of Technology Offers foundries assistance in design, simulation and mould and core 3 D printing 3.5 Department of Economic Development Has introduced a price preference system for scrap metals to improve availability and cost for foundries Has developed guidelines for the export of scrap metal Slide 26
27 3.6 National Cleaner Production Centre Assists foundries to improve energy efficiency through conducting assessments and implanting recommendations Provides support to achieve compliance with environmental standards and legislation 3.7 Department of Health / Energy Provided training via International Atomic Energy Agency in the regulation and control of radiated materials found in metal scrap Slide 27
28 3.8 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 3.9 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 Slide 28
29 4. International Co-Operation The SAIF, in conjunction with one or more of its partners has established links with The American Foundry Society, The British Association ICME, The German Foundry Association, including strong links with Freiberg University and the foundry industry in Egypt, with a purpose of forming a union of foundries on the African continent. Slide 29
30 5. Conclusions The South African Foundry Industry is facing strong headwinds, but with assistance from the state and other institutions several opportunities can be realised: 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 The SAIF will continue to leverage both increased demand and new technology to grow the industry, improve competitiveness and build human capacity. Slide 30
31 Slide 31 THANK YOU
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