.Casting solutions with a difference. KEW FOUNDRIES N.E.R.S.A PRESENTATION IMPACT OF ELECTRICAL COSTS IN THE MANUFACTURING SECTOR

Transcription

1 .Casting solutions with a difference. KEW FOUNDRIES N.E.R.S.A PRESENTATION IMPACT OF ELECTRICAL COSTS IN THE MANUFACTURING SECTOR DATE: 6 TH NOVEMEBR 2017 PRESENTED BY JAIME GONCALVES

2 K.E.W. FOUNDRIES

3 CONTENTS About Kimberley Engineering Works Manufacturing: Value Adding Process Safety Critical Products Exports Product Development Customers Examples of products produced Macro overview of Employment in the Manufacturing Sector Future Developments at KEW: Threats to the Developments at KEW Conclusion Contact Details

4 ABOUT KIMBERLEY ENGINEERNG WORKS Established by De Beers in =126 YEARS OLD Serviced the start of the Mining industry in S.A. Played an integral role during the Anglo Boer War Long Cecil Canon In 2007, underwent a name change to KEW FOUNDRIES; Presently services the Mining and the Manufacturing Industry offering a wide range of services and products:- Mine headgear sheave wheels; Castings manufactured in various grades of Cast Iron & Spheroidal Graphite Iron (SG Iron) 1 kg kg; Precision machining and fitting; Deep Drawn thin wall cylinders.

5 ABOUT KIMBERLEY ENGINEERNG WORKS Continued Presently a Level 5 BBBEE Contributor (with 36% shareholding black`owned). ISO 9001 Rated company. Annual surveillance audit completed on the 26 th April 2017; Developing systems to implement and achieve ISO and ISO accreditation

6 ABOUT KIMBERLEY ENGINEERING WORKS (continued) K.E.W DESIGN FITTING & TURNING FOUNDRY PRESSINGS Conceptual design; Site assessments & evaluations Developing criteria for new designs

7 MANUFACTURING: VALUE ADDING PROCESS Approximately 15% (2016/2017 Financials) of KEW s Input Cost base is dedicated to the purchase and payment of ELECTRICITY to initiate the value adding process:-

8 MANUFACTURING: VALUE ADDING PROCESS (continued) In value added costing terms: SCRAP STEEL = R 2.50/KG VALUE ADDED PRODUCT = ± R 44,00/KG

9 SAFETY CRITICAL PRODUCTS KEW is the most experienced and ONLY manufacturer of cast iron mining head gear sheave wheels in the world. More than 5000 sheave wheels have been manufactured in the last 20 years.

10 SAFETY CRITICAL PRODUCTS These products comply with the most stringent Mining and Health and Safety Regulations globally. KEW sheave wheel designs are installed in mines throughout Africa, Canada, Australia, India, Mongolia, South America, the United States of America, Russia, Sweden and Finland.

11 SAFETY CRITICAL PRODUCTS Examples of Safety Critical Products produced and installed:sinking sheaves packaged and ready for shipment to Russia (15 off containers In total packaged & shipped from Kimberley, South Africa) Dia. 6500mm Sheave Rim being machined Dia. 6152mm 6-Sheave Deflection Cluster Trial Assembly 2 off Sets Dia. 1900mm 6-sheave Cluster assemblies Dia. 1800mm 2 off 3-sheave doubling down cluster sheaves Dia. 5500mm 4-sheave Deflection Sheave Cluster installed

12 AFRICA EXPORTS KEW Foundries has extensive experience in exporting sheave wheels and related products throughout the world:- BRAZIL, PERU, CHILE

13 PRODUCT DEVELOPMENT Over the last 15 years, KEW has used the knowledge gathered over its 100-year history in producing safety critical items and applied this knowledge to expand the range of products KEW offers our Customers in:- Materials Handling components, e.g. Flywheels and V-belt pulleys; Housings for rolling elements (White Metal and bearings); Pumping Industry (Specific water and low density slurry applications) Water reticulation Industry, e.g. Gate and Disc Valves Smelting Industry, e.g. Slag Baths Railway parts, e.g. railway blocks, cannon boxes Port, e.g. bollards Driven Machinery, e.g. gearboxes and motor housings

14 CUSTOMERS Below are a list of some of our Customers, local and international that are served from our operation in Kimberley:-

15 EXAMPLES OF PRODUCTS PRODUCED Below are examples of some of the products produced:- Dia. 1000mm Valve Body 6100kg Pump casting Assorted Castings from 1kg 5500kg Dia. 3000mm Valve Body Large Bore Bearing Housing Castings Mass weights, 5500kg

16 MACRO OVERVIEW OF MANUFACTURING IN SOUTH AFRICA CONTRIBUTION TO GDP Referring to the South Africa Reserve Bank Quarterly Bulletin, September 2017 and Stats SA:-

17 MACRO OVERVIEW OF MANUFACTURING IN SOUTH AFRICA CONTRIBUTION TO GDP (continued) Referring to the South Africa Reserve Bank Quarterly Bulletin, September 2017 and Stats SA:-

18 MACRO OVERVIEW OF MANUFACTURING IN SOUTH AFRICA: GLOBAL COMPARISON Referring to the South Africa Reserve Bank Quarterly Bulletin, September 2017 and Stats SA:-

19 MANUFACTURING YEAR-ON- YEAR IN SOUTH AFRICA Referring to the South Africa Reserve Bank Quarterly Bulletin, September 2017 and Stats SA:-

20 MANUFACTURING IN SOUTH AFRICA EMPLOYMENT Referring to the South Africa Reserve Bank Quarterly Bulletin, September 2017 and Stats SA:-

21 MANUFACTURING IN SOUTH AFRICA EMPLOYMENT (continued) Referring to the South Africa Reserve Bank Quarterly Bulletin, September 2017 and Stats SA:-

22 MANUFACTURING IN SOUTH AFRICA EMPLOYMENT (continued) Referring to the South Africa Reserve Bank Quarterly Bulletin, September 2017 and Stats SA:-

23 MANUFACTURING IN SOUTH AFRICA EMPLOYMENT (continued) Referring to the South Africa Reserve Bank Quarterly Bulletin, September 2017 and Stats SA:-

24 DEVELOPMENTS AT KEW FUTURE DEVELOPMENTS: Increase power installed electrical capacity from present 2000kVA to 4000kVA, minimum

25 DEVELOPMENTS AT KEW FUTURE DEVELOPMENTS: Increase mould production capacity in the Small Foundry to match molten metal output per hour Present before new Furnaces, molten metal output is 500kg / hour; After New Furnaces commissioned, output will increase to 4000 kg / hour (estimated).

26 DEVELOPMENTS AT KEW FUTURE DEVELOPMENTS: Increase Machine Shop machining capacity to increase value added capability on O.E.M Parts

27 DEVELOPMENTS AT KEW THREATS TO DEVELOPMENT: Cost of electricity: Local and National Job creation under pressure Approximate R 1,2 Million over expenditure on Electricity per year; For every Job Entrant into the Manufacturing Sector, approximately 15 new JOBS are lost per year at KEW Foundries Economic growth in South Africa: Global resource prices Skills development in South Africa A healthy nation Cost of New Electrical Installation upgrades Imports: Fast Moving Consumer Goods

28 CONCLUSION Should the proposed ESKOM Tarriff increase of approximately +20% for the 2018/2019 period, the impact to the Manufacturing Sector will be DETRIMENTAL:- Further Job Losses Further decrease in manufacturing capacity Further dependence on Imported Content Increased pressure on the Balance of Payments

29 CONTACT DETAILS If your have any queries, please contact:- Jaimé Goncalves Operations Director Tel: +27 (0) Mobile: +27 (0) Fax: +27 (0) # 1: jaime@kewfoundries.co.za #2: goncalves@kewfoundries.co.za Alternative info@kewfoundries.co.za Website: