The Valve and Actuator Manufacturers Cluster of South Africa (Vamcosa), which was formed in July last year, plans to start an enterprise development fund to enable it to set up a machine shop or foundry to make a contribution to skills development within companies that supply the local valves sector.

Vamcosa member Mark Wilson says one of the cluster’s main goals is to grow the South African valves industry and encourage localisation, which will, in turn, improve job creation and skills development.

“The establishment of the enterprise development fund is currently being planned.

“New black economic-empowerment (BEE) codes for this type of initiative have been suggested and this means that we have to change our strategy completely. If the codes are not accepted, we can go ahead with our original strategy. If they are accepted, then we need to do an overhaul,” he says.

He adds that the cluster further aims to promote the manufacturing of products in South Africa with locally produced castings, forgings and materials; job creation through local procurement to increase the value chain both upstream and downstream; and transformation within the industry by jointly looking at enterprise development in valve-orientated businesses.

“We also want to promote interaction between the industry and State-owned companies (SoCs), as well as interaction between municipal-owned enterprises (MoEs).

“Vamcosa also aims to improve standards and specifications and create ones that are uniform throughout the SoCs and MoEs, and to promote exports by improving quality and continuous research and development,” he says.

The cluster has started a technical working group with State-owned enterprise Eskom, with the first meeting set for this month.

The technical working group was formed to enable SoCs to define what they require from local valve manufacturers, as well as to compare its requirements equally with the products offered by local and international manufacturers.

“It is a kick-off meeting. We would like SoCs to start compiling separate specifications for locally manufactured products and imported products, and judging the quality and prices of two separate manufacturers more fairly,” he says.

Wilson believes Eskom is not fully aware of the valves that are locally available.

“Until now, importers have wielded more financial power than local manufacturers. There is a lack of standardisation and procurement is becoming complicated.

“For example, valves that go into some power stations are not of the same quality as those that are used at other power stations. This leads to valves that need to be replaced regularly, which can become very expensive,” he notes.

Wilson points out that Vamcosa wants to make the relevant authorities aware that the cost of ownership of valves is dif- ferent to the upfront purchase price.

Further, the cluster is also working with the Department of Trade and Industry (DTI) to combat cheap imports and promote local valve manufacturers’ growth and sustainability.

“The DTI sees what we are trying to accomplish and hopefully the designa- tion process [to designate sectors for local production] will stop imports and help grow jobs,” says Hunter.

Further, he adds that the DTI has been pushing the concept of clustering for a long time, and Vamcosa is the first cluster successfully working within the DTI’s designated cluster parameters.

State of the Industry

Vamcosa member Ross Hunter states that the local valve manufacturing industry has been on the decline since 1994, adding that the industry as a whole has shrunk by 60% since then.

“This is because imports are less expensive than locally manufactured valves and it is easy to pick up a phone or type an email and place an order with a manufacturer in China,” he notes.

He adds that the problem with cheaper imports is that the quality of the valves is inconsistent.

“One can start with a company that makes good-quality valves. If the company is overworked or is not able to fill an order, that company will subcontract the work order. This can change the quality of the valves, so you don’t have a consistent quality each time you place an order,” he says.

Hunter believes Vamcosa will have a posi- tive impact on the development of the local valves industry.

“We are working on ways to improve our research and development and are also working closely with the local foundry industry. Representatives from the National Foundry Technology Network, which is a government-funded initiative, attend all our monthly meetings.

“Vamcosa’s chances of making a mark within the local industry are now better than they were before we formed Vamcosa. We want to bring local manufacturers together to create a common focus and goal,” he concludes.