Compared with the situation two years ago, prospects for the R18-billion foundry industry look promising, mainly as a result of expected growth in the valves and pumps ectors, says Kimberley-based metal castings specialist KEW Foundries director John Bryson.

“The drive by the valves cluster and the Department of Trade and Industry (DTI) to enforce a minimum of 80% local content in locally produced valves holds potential,” he notes.

Bryson says KEW Foundries is already active in the valves market. Its 11-year relationship with local valves manufacturer Gunric Valves has seen the foundry complete a R2.3-million order for seven sets of DN2500-1500KMP valve bodies, weighing 5 t each, and discs, weighing 6.5 t each, within 15 weeks of receiving the order.

The pumps industry represents another key expansion area for foundries and centri- fugal pumps manufacturer Sulzer Pumps has become KEW Foundries’ biggest foundry customer over the last five years, with parts supplied by KEW being manufactured to German specifications.

“We have reached a level of product competence where no casting within our 7 t maximum casting weight capacity is too challenging. New patterns continuously flow to us and, with the partnerships forged between ourselves, Sulzer and its pattern shops, we are now involved in the pattern design stage,” says Bryson.

Areas of Concern

However, spiralling labour and energy costs remain a challenge.

“Over the past five years, our labour costs have increased by 50%, whereas Western European labour costs have increased by only 10% over the same period.

“In addition, electricity price hikes of, on average, 25% a year since 2008 have eradicated our historic low-price energy advantage. Our industrial energy costs are now above those of our major competitors in other countries,” says Bryson.

The National Foundry Technology Network (NFTN) is working with stakeholders to find solutions to these pressing matters.

Another area of concern is new environ-mental legislation, which compels South African foundries to submit short- to medium- term plans to meet the legislation now in place, often at great cost.

“It is imperative that any international company that produces all of, or part of, any import, is subjected to similar legislation, otherwise we will, once again, lose out to imports,” he states.

Meanwhile, Bryson points out that recent foundry industry training and manufacturing initiatives also augur well for the industry.

KEW Foundries says current government initiatives and engagements from the DTI, the NFTN, the Manufacturing, Engineering and Related Services Sector Education and Training Authority (Merseta) and foundry companies are dealing with the lack of training advancement in the foundry industry over the past 25 years.

Bryson says most foundries are too small to play a significant role, but stand to benefit from learnerships and apprenticeships that the larger role-players have put in place, resulting in learners and apprentices finding their way to smaller foundries to enhance their training or become permanent employees.

“KEW Foundries has been involved in the development of these training programmes and the standard of the moulder, patternmaker and melter material is such that it matches, if not exceeds, any international qualification. The structure also allows for job fragmentation to encourage semiskilled qualifications and certification,” states Bryson.

The company also participates in the Department of Science and Technology’s (DST’s) Technology Assistance Programme (TAP), which is a technology localisation initiative aimed at helping South African foundries improve their technological capabilities and leverage procurement opportunities from State-owned entities.

The DST’s TAP has opened up communication channels with major technology services providers, such as mineral processing and metallurgy extraction research and development specialist Mintek, the Council for Scientific and Industrial Research and other counterparts, says Bryson.

“Although there have been teething problems, we have had success with the DST’s TAP in modifying the methodology on our solid sheave wheels, where input from process and plant simulation software services provider SimLogic’s managing member, Adrian Paine, has been invaluable.

“However, further develop-ments within the DST’s TAP are required to assist foundries going forward,” notes Bryson.

Meanwhile, KEW Foundries says that, although there have been no recent major technological advances in the ferrous foundry industry, the trend is to move away from steel to spheroidal graphite iron castings in certain fields, as users become more educated on the material.

“Its benefits include lower-priced castings, reduced machining costs and compatibility with certain steel specifications, as well as design friendliness. Global advancement in aluminium and aluminium alloy castings also offers better capacity for growth,” says Bryson.

Nonetheless, he warns that, despite promising forecasts, industry needs to be mindful of the negative impact that the reduced number of foundries in business could have on service levels and volumes, which could lead to an increase in imports.