November 2010

SUROH

STEEL STUDIO
INTERNATIONAL

This South African company is leading the balustrade industry with its spectacular designs
R29.95

The IDC provides finance for industrial and enterprise development.

To discuss funding of R1 million or more, please call 086 069 3888 or visit www.idc.co.za

Rolling out a successful mining components

company in Gauteng tested our mettle.

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14
18
23

November 2010

Columbus
Filterscreen
Fischer
IDC
Macsteel
Metso
Remkor
Rimex
Steel Studio

Committed to supply chain management

Air Liquide

KZN fabricators show off their international skill

Metso

The experts in handrails and balustrades

Steel Studio

Suppliers of top-class polished tube and round bar

Macsteel VRN Stainless

Architecture

Solar

The utility ferritic has proven itself as the

most hard wearing stainless steel

3CR12

Unpacking the history behind Sassdas

stainless steel levy

Financials

Sassda appoints its new main committee and

executive board members

Sassda Board

Welding stalwart recognised at this years

Southern African Welding Association awards

Welding

New ferrochrome smelters are on the cards

for SA, say alloys experts

Ferro Alloys

The governments proposed solar park

holds huge opportunities for SA manufacturers

24

22

20

19

10

FOCUS ON

EE stairs from Steel Studio

Durability, strength and aesthetics are only some

of the reasons why architects love stainless steel

We talk to Sassdas new Executive Director Sethakgi Kgomo

Personality Profile

News and events from the association

Sassda News

News and events from companies in the industry

Industry News

Sassda and Ken Dewar answer your technical questions

From the Technical Desk

A message from Sassdas Executive Director Sethakgi Kgomo

Perspective

PROFILES

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28
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32

THE ARCHITECTURE ISSUE

CONTENTS

November 2010

REGULARS

ADVERTS

visit www. sassda.co.za

For more information on the Stainless Steel awards

MAKE SURE ITS STAINLESS

Southern Africa stainless steel development association

Make sure it lasts forever. Make sure its stainless steel.

If appropriate grades and finishes of stainless steel are selected, there should be no need to replace
stainless steel, even if a buildings life spans thousands of years. When total life cycle costs are considered,
stainless steel is often the least expensive material option available for architects, designers and quantity
surveyors. It is used, not only as a structural material, but also for cladding, balustrading and all sorts of
interior applications.

The use of stainless steel in the Architectural, Building and Construction Sector is rapidly increasing due
to the materials properties - aesthetics, durability, corrosion resistance, ease of maintenance, fire
resistance and its eco-friendliness.

If ancient architects and builders had used stainless steel their creations would still be in use today

Imagine if ancient architects and

builders had used stainless steel

TTW 13535

November 2010

Stainless Steel is published every eight weeks and is distributed

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by Sassda.

Tel: 0861 SASSDA ((727732)

Fax: 086 639 4280
e-mail: info@sassda.co.za
www.sassda.co.za

Yumna Emeran
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Martin Nel

Sethakgi J Kgomo

SASSDA

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requests to melissar@polka.co.za

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CONTACT US

Sethakgi J Kgomo
Sassda Executive Director

am pleased to introduce myself to

you as the newly appointed executive director of Sassda.
I take this opportunity to extend my sincere gratitude to the
Sassda board for affording me the
privilege of leading Sassda. To get
to know the board better, see our
profile on the newly elected members on page 28.
It was a great privilege to
meet some of the members of the
association at the Sassda Annual
General Meeting held on the 30th
September. I am filled with expectation, but also acutely aware and
therefore fully conscious of the responsibilities I assume from the 1st October 2010.
As the association, we will strive to vigorously maintain
and increase contact with current and potential members and to
update all stakeholders on the activities of Sassda. We have already revitalised sector meetings and look forward to increased
participation from our member base. We aim to promote the
benefits of being a Sassda member so that collectively we can
lobby the industry to growth and ultimate success.
Personally, I wish to address the challenges of the industry pertaining to existing trade barriers and unpacking the value
chain of our industry to ensure a full assessment of the actual and
potential value of our industry to our country.
Its important to leverage off best practices of industry
peers and benchmark ourselves against relevant organisations
to ensure constructive and innovative development within the
association.
I look forward to making a real difference here and
affirming Sassdas role in the sustainable growth and development of the industry.

PERSPECTIVE

November 2010

focus on

ARCHITECTURE

November 2010

The green issue

Probably its most attractive characteristic and the reason behind its surge
in popularity, is the fact that its one of
the most environmentally friendly metals
commonly used.
Catherine Houska, the international expert on stainless steel in architecture, encourages architects looking to
create green buildings to ask some very

Since its invention in the 1920s, stainless steel has been used for structural purposes both large and small. Its extensive
use is apparent in some of the worlds
most iconic buildings and it is becoming
increasingly significant in todays built
environment. So what is it about stainless
steel that makes it as endearing now as it
was almost a hundred years ago?
In a nutshell, stainless steel
provides structural engineers with the
strength, durability and fire resistance
that cannot be matched by other common building materials.
For civil engineers, the product
has a greater capacity to work under
stress. It offers building owners a long life
cycle that ensures the structure requires little maintenance but keeps its visual appeal for as long as it remains erect and
for architects, its an aesthetically pleasing
product that only gets better over time and
even if completely neglected, can easily
be restored to its original appearance.
Its these broadly appealing
characteristics that make stainless steel a
common choice for construction projects
and its usually the one material that parties involved in a project can agree to
work with. All architects love stainless
steel, says Johannesburg based architect Krynauw Nel.

Sustainable projects
Stainless steel is corrosionresistant, which makes it such an outstanding material for indoor and outdoor
projects in any climate as long as the
appropriate grade is used.
In South Africa, Type 304 is
well suited for the majority of interior proimportant questions about the materials jects as well as exterior work in places
they intend to use. These include:
like Gauteng which have a milder clit
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those with higher pollution levels.
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from London is exposed to brackish
corrosion?

The Petronas Twin Towers

in Kuala Lumpur (detail above and
full image left) have 65 000m2 of
stainless steel cladding and are an
iconic example of stainless steel in
architecture

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required?
In assessing stainless steel
against these provisos, it comes as no
surprise why it is the metal of choice for a
more eco-aware and friendly generation.
Stainless steel is 100% recyclable although it is typically in use for
twenty to thirty years before it is recycled
which means that the recycled content
in new products only ever sits at about
60%, according to the International
Stainless Steel Forum. However, when it
is recycled, no down cycling occurs no
matter how many times the metal goes
through the process.
Its scrap value and corrosionresistance, both of which are high, are
the fundamentals behind it being called
a green metal but its durability and lifespan come into play too.

offers architectural splendor

Stainless steel

The material offers strength, durability and

affordability due to its long LIFE CYCLE
as well as aesthetic qualities that only improve over time

Iconic structures
Examples of innovative use of stainless
steel by architects are visible globally; from some
early instances like the Empire State and Chrysler
buildings in New York, to the Louvre Pyramid in
Paris built in the 1980s and the more recent architectural feat of Kuala Lumpurs Petronas Towers
with 65 000m2 of stainless steel cladding.
But what about South Africa? What are
our architects and designers doing with stainless
steel? As with most trends we lag a little; probably due to the fact that while the rest of the
world was building with stainless steel, we had
a love affair with concrete and tiles.
Its great for fixtures like hand rails or
floor strips that are produced on mass from a
prototype, says Nel. But anything else is considered a once-off job which requires design
and development time which, on top of the cost
of the metal, makes it a grand project and quite
unaffordable for most.
And hes right; weve started to see
some exceptional examples of balustrade and
railing installations such as the kilometres of
balustrades at OR Tambo and King Shaka
International Airports and all of the Gautrain
stations but are yet to see some stainless steel
mega-structures.

Money matters
With the whole world more moneyconscious than ever, project managers are
rigorous about the financial management of a
project; usually the reason why stainless steel is
overlooked as a major component of many projects. Nel says that the price of stainless steel is
usually the prohibitive factor to its wider use in
construction as clients perceive other materials
to provide more cost-effective solutions. Its at this
point where client education is sorely needed.
While the initial investment is higher
than many other materials, the long term cost
benefit of using stainless steel is greater too.
With its long life cycle, negligible need for coating and minimal maintenance requirements, the
only significant investment in the metal, is the upfront capital outlay.

water, salt spray and an average humidity of

80%. Its created almost entirely of Type 316
stainless steel and looks as good as it did when
it became operational in 1982.
Being corrosion-resistant also means
that stainless steel requires no coating and therefore no environment hazards. It also makes the
product more cost-effective than many other construction materials as it eliminates the need for
ongoing paint work over the life of the structure.

ARCHITECTURE

focus on

Thames
Barrier
(right) is
made from
grade 316
stainless steel
and looks
as good as
it did when
it became
operational
in 1982

November 2010

Lloyds of London was designed in 1979. The central spiral

column is one of the stainless steel clad staircases. Staircases, pipes
and other services were placed on the outside of the building

company

November 2010

Macsteel VRN Stainless has the equipment to polish stainless steel tube, round
bar and sheet, which means they can
compete with the best international markets have to offer.
Macsteel VRN Stainless has a
6 station Loeser tube polisher that can
polish up to 800 grit on round tube and
bar and can polish up to a 600 grit finish on square and rectangular tubing.
The 6 station Loeser tube polisher is a grinding and polishing line
for stainless steel tubes of up to 150mm
in diameter and 6m in length. The
polisher has 11 kW per station and
a pressure control for the belt, which
measures 150mm wide by 3500mm
in length. The constant pressure extends
the lifespan of the belt.
The polisher has an enclosed
cabin with a mist collector, which ensures a quiet and clean operation. The
Loeser can polish tubing to ensure sur-

face improvements prior to plating.

The two sheet polishers used
are modern high-tech machines. The
Grindmaster gives the traditional No 4
finish while the Costa gives the more
refined scotch bright finish favoured in
the catering industry.
The equipment means Macsteel VRN Stainless can polish tubes,
round bar and sheet to world-class

standards, says Kit Williamson, the

managing director of Macsteel VRN
Stainless. The idea behind acquiring
the equipment was to ensure that the
company can compete with the best imported finishes.
Macsteel VRN Stainless is dedicated to local conversion and believes
its service centre provides the perfect
solution for local manufacturers and
specifiers. Centre to our strategy is a
focus on local: local procurement, local added value and local conversion,
says Williamson.
Macsteel VRN Stainless wants
to strengthen South Africas local conversion base, says Williamson. We
are committed to providing competitive
value added products to South African
fabricators to ensure growth of the local
conversion of stainless steel, and in so
doing contribute to the growth of employment in South Africa.

a shine to local conversion

Macsteel VRN brings

The 6 stage Loeser tube polisher (above) and the Costa Scotch Brite polisher (below) mean Macsteel VRN
can compete with the best polished tube international markets have to offer

PROFILE

focus on

SOLAR

November 2010

November 2010

South Africa is seeking billions of rands

in investment for a 5 000 megawatt
solar park, Energy Minister Dipuo
Peters said in early October. The project,
which aims to generate private sector
investment, is part of the governments
move to wean the country off its heavy
reliance on coal and move towards
renewable energy.
The first deals relating to the
solar park near Upington in the Northern Cape are expected to be concluded by 2011 and electricity is scheduled
to be flowing from the grid by 2012.
The area in Upington was identified in a pre-feasibility study conducted
by the Clinton Climate Initiative.
The Northern Cape Province
possesses some of the best conditions
in the world for producing solar power. The province boasts excellent and
consistent sun, large areas of suitable
and available land and the ability to
connect to the electricity grid at multiple points, good availability of water,
and a developed highway system and
a good airport, making it an ideal location for solar deployment, says Ira
Magaziner, the chairman of the Clinton
Climate Initiative.
Our cost analysis confirms
that solar power can be deployed in
South Africa in large quantities over
the next decade at costs that become
competitive with and eventually lower
than new fossil fuel-fired power, says
Magaziner.
Peters says the government will
provide the infrastructure for the project,
then lease out the land to private developers who will finance and build individual projects that will sell power to the
national grid.
The department of energy has
a huge task ahead of itself if it plans

to decrease South Africas reliance on

coal from 90% to 48% by 2030 as
stipulated in its long-awaited integrated
electricity resource plan (IRP2) released
in October. The government will need
to invest about R100 million to set up
the solar parks basic infrastructure and
stimulate private investment of about
R150 million.
A solar park can radically decrease the costs of solar power due to
economies of scale and locally-manufactured components.
Peters believes the proposed
solar park will provide as much power
as one coal-fired power station.
The solar park offers amazing
opportunities for local industry. Although
the majority of the structural work will be

in carbon steel due to the location being the Upington area, which is a noncorrosive environment, stainless steel
will be a great material for additional
applications in the park.
Although it is too early to know
what technology will be used for the
solar park, it is safe to say that stainless steel will be a great material for a
number of different applications.
Stainless steel is the ideal material for the heat transfer piping, heat
exchangers and the hot salt storage
tanks and is used successfully across the
world in solar applications.
Stainless steel can also be
used in mirror frames, electrical boxes,
palisade fencing and access control
gates.

Solar technologies to be considered will include the use of Silica or

crystalline modules (above and left) for photovoltaic systems

to boost local manufacturers

Solar Park initiative

A solar park can radically decrease the costs of

SOLAR POWER due to economies of scale
and locally-manufactured components

FERROCHROME

focus on

November 2010

Chinas exploding stainless steel industry would lead to a wave of new

ferrochrome smelting capacity in South Africa from 2013, including greenfields plants, assuming sufficient electricity could be supplied, a German metals
analyst argued.
Shortages due to existing energy supply problems would boost ferrochrome, prices in coming years says Heinz Pariser, head of Heinz H Pariser
Alloy Metals & Steel Market Research. Ferrochrome is a key component in
stainless steel.
Despite Parisers guarded optimism there remains skepticism that ferrochrome producers will gain access to significantly more power supply over
the next 20 years needed for smelting.
However, on Wednesday October 20, Xstrata announced it would
go ahead with the second phase of its postponed R4.9 billion Lion complex
ferrochrome smelter after securing electricity supply from Eskom.
Xstrata, which is in a joint venture with Merafe Resources, delayed construction following uncertainty caused by the power supply and financial crises.
Commissioning is expected in 2013 when Eskoms new Medupi power plant is likely to come on stream.
South Africa, with over 70 percent of all raw chrome ore, has been
unable to take advantage of the opportunity to convert it into the value-added
ferrochrome, initially due to the energy crisis and then the global financial
crash. Since then demand has resumed. Historically ferrochrome has been
most efficiently produced close to chrome ore mines but shortages have contributed to the rise of the smelting sector in China.
Expansion would not take place on a large scale before 2013, Pariser
told the recent MetalBulletin South African ferro alloys conference in September.
Existing ferrochrome capacity restrictions are expected to be lifted
after 2013 and about 600kt idled capacity will be available again, he said.
Following the electricity blackouts of 2008, Eskom electricity supply
to ferrochrome smelters has been restored to 90 percent of demand. In 2013
power supply is expected to exceed demand.
Ferrochrome production capacity utilisation was as low as 56 percent
during the economic crisis of 2009 but has already resumed to the previous
level of about 85 percent and is expected to maintain this rate to 2015.
Pariser, despite his bullish outlook for expansion and new plants, cautioned that industry sources believed electricity demand could exceed capacity
again at some point after 2013. The extent of new ferrochrome capacity
would depend in part on whether Eskom or possibly new private power producers were prepared to enter long-term supply contracts, Pariser said.

on the cards for SA

11

New ferrochrome smelters

Xstrata is going ahead with the second phase of its

R4.9bn ferrochrome SMELTER after securing
an electricity supply deal with Eskom

12

Cornelis van der Waal, energy

programme manager at Frost & Sullivan
Africa, had a far more bearish outlook.
Commenting on mineral beneficiation in general, Van Der Waal said
that the country would need a cheap
and reliable electricity supply to support
this energy intensive sector.
While beneficiation remained
part of the governments strategy, the
emphasis in its executive summary of
the draft Integrated Resource Plan (IRP)
2010 to 2030 had moved away from
power-hungry industry towards the leaner commerce sector, he said.
The IRP charts out a flexible
middle road to new electricity generation over the next 20 years. It sits
in between dirty low-cost approach
that could provide more plentiful electricity supply at cheaper prices, and
constrained growth of higher priced
clean energy. Thus the opportunity for
new mineral beneficiation will neither
be plentiful nor parched.
Van der Waal agreed that after the first phase of the Medupi plant
came on stream there would be more
power capacity but said this electricity
would be expensive. The government
would have the option of weighing up
benefits of subsidising energy costs in
order to make beneficiation viable. But
he described this as a risky approach.
Investors would take a 30-year view and
subsidisation might be difficult to guarantee for such a long period, considering
political and policy changes that could
occur over time.
Van der Waal added that
there was also inertia as to what type
of power stations to build after Medupi
as it was not known how high expected global carbon emission taxes on
coal generators would be. This created uncertainty as whether to build
carbon emitting coal-fired or cleaner
nuclear plants. But if electricity cost
and supply were resolved the country
could have a thriving beneficiation
sector, der Waal concluded.
Pariser said in 2009 ferrochrome export sales were as high as
US $4.31 billion, while export revenue from the lower value ore was only
$704 million, demonstrating the opportunity of converting the raw material

FERROCHROME

focus on

into ferrochrome.
He expected significant [ferrochrome] price increases in coming
years, predicting Chinese stainless steel
production would increase by as much
as 50 percent by 2015.
An increasing conversion of
imported chrome ore is taking place in

November 2010

China, illustrating South Africas lost opportunity of selling the beneficiated ferrochrome to that country.
But it remained to be seen
whether these [Chinese] facilities will
remain in place once South Africa has
regained its dominant market position in
the global industry, Pariser said.

Domestic stainless steel users are not expected to suffer shortages of ferrochrome nor pay a premium for the component above Chinese users
despite surging stainless steel demand in the worlds second-largest economy, metals analyst Heinz Pariser says.
I do not see that domestic South African producers will be punished through a special chrome price premium, says Pariser.
He notes that Chinese companies are already shareholders of several ferrochrome units in South Africa and thus a certain tonnage is,
without question, already destined for China.
Commenting on the local stainless steel sector he says the South
African producer is part of a very strong stainless steel group that has
long-standing contacts with the ferrochrome industry; so we cannot see
that at present.
It also has to be kept in mind that chrome is not only available as
primary ferrochrome but also in form of stainless steel scrap.
This in many cases puts a lid on jumping raw material prices, as
secondary chrome always gives the stainless steel mill some price advantage, Pariser says.

SA to weather fallout from Chinese demand

focus on

November 2010

The government revealed it

had no plans to introduce an
export levy on chrome ore,
after an analyst at Macquarie
First South Securities said there
was a compelling case for
the tax in order for South Africa to benefit from its dominant
position in this market.
Merafe
Resources
have also previously called
for chrome exports of the raw
material to be restricted as India has done, but in October
the National Treasurys chief
director of communications,
Jabulani Sikhakhane, told
Stainless Steel magazine it
was not considering an export levy on chrome ore.
In late September
Macquarie analyst Avishkar
Nagaser said the export levy
on chrome ore would encourage local industry to increase
capacity to beneficiate it into
ferrochrome, a higher value
component in stainless steel
than the raw material, and foster employment growth. Nagaser, who had been speaking at the MetalBulletin South
African ferro alloys conference, Workers at an Xstrata ferrochrome smelter
said the value of ferrochrome
taxes from dirty but cheaper coal-fired
was about four times higher
than chrome ore in 2009 and the differ- power stations as indicated by the govence was expected to increase.
ernments draft Integrated Resource Plan
The statement by the Treasury (IRP) 2010 to 2030.
Theoretically the countrys powmay signal a government move away
from a policy bias towards adding value erful position in the chrome ore market
to minerals due to the frequent high ener- would make it difficult for customers, pargy consumption in this sector. The coun- ticularly those in China, to buy enough
try faces a double whammy from high elsewhere, giving the country the opporelectricity costs due to previous under tunity to beneficiate it into higher value
investment in generation, coupled with ferrochrome.
Nagaser said there was a
expected future global carbon emissions

13

strong case to be made in fa

vour of the export levy because
South Africa was giving away
its competitive advantage.
Nagaser said the government needed to make a decision on introducing the levy,
which he described as a collaborative effort from Treasury
and the Department of Mineral
Resources (DMR).
He said that while
there was a counter argument
that there was a lack of electricity supply to increase valueadding smelting capacity, the
country was playing into Chinese hands.
The more chrome ore
South Africa exports, the more
self-sufficient the buyer [presumably a Chinese consumer]
becomes, Nagaser noted.
He said the DMR already had a beneficiation
strategy in place that it needed
to move forward and implement on a gradual basis.
The DMR did not respond to requests to comment
on its mineral beneficiation
strategy.
Earlier this year Mining Weekly reported Merafe
Resources, which has been
campaigning for some time for the exportation of chrome ore to be reduced,
conceded that the power shortage
might result in even more unbeneficiated ore being sent out of the country
without any value addition a foreignexchange and job-opportunity loss for
South Africa.
Merafe is part of the XstrataMerafe Chrome Venture, led by Xstrata,
the worlds largest ferrochrome producer.

water on call for export levy

Government throws cold

FERROCHROME

PROFILE

company

November 2010

Steel Studio International are as well

known for their residential creations as
they are with their commercial masterpieces. As a specialist manufacturer and
installer of custom-designed stainless
steel and glass balustrades and staircases, their quality and service standards
have made them the market leader in a
highly competitive space.
Steel Studio International claim
that the key to their success comes down
to being a peoples business with a
team of highly skilled and qualified individuals who are all involved in every
aspect of every project. We attract clients because our team is able to interpret
their specific requirements, says chief
executive Rob Blackbeard.
In addition, our attention to detail coupled with the latest in design technology, manufacturing and installation
equipment ensures that the end product
is completed to international standards
and at competitive prices.
Each customised design includes a combination of stainless steel
in laser cut plate profiles, tubular components, timber elements or toughened
glass.
But while its people may drive
the business, its cutting edge installations
both in South Africa and further afield
build and maintain the companys reputation amongst its client base of builders,
architects and developers.
With a project list that reads
like the Oscar winners of the construction and architectural industry, its Steel
Studios commercial projects that gain
most of the attention. Their World Cup
infrastructure projects included King
Shaka and OR Tambo international airports; the latter took almost 18 months
to complete and resulted in several
kilometres of stainless steel balustrades
throughout the airport.

More recent commercial projects include the iconic new landmark which
is the Deneys Reitz Offices on 15 Alice
Lane in Sandton. Steel Studio Internationals frit glass and stainless steel balustrade perfectly complements the exquisite design of the buildings internal
multi-level glass bridges.
Just across the road, the Sandton City shopping centre is undergoing
a long overdue upgrade. Steel Studio
has been able to bring the complexity of the architects design to life by
combining laser cut stainless steel post
profiles, timber elements, glass and in-

Deneys Reitz offices (above

and left) in Alice lane, Sandton.
Steel Studios glass and stainless
steel balustrades complement the
exquisitely designed glass bridges

15

tricate leather detail.

We are extremely proud to be
a part of this project and work alongside the professional individuals behind
its design and execution, says Rob
Blackbeard.
Across the border in Mozambique, a new Radisson hotel will be
opening its doors before the end of the
year and Steel Studio International is responsible for its hundreds of meters of
glass balustrade. Its also responsible
for the 37 floors of stainless steel and
glass balustrades on the W Hotel in Austin, Texas which the company believes
is the most prestigious project its been
involved in internationally.
Despite their involvement in multibillion rand commercial structures, Steel
Studio International is as attentive to its
residential clients and has been involved
in many award winning creations.
We are committed to working
within the home owners budget and our
team is involved throughout the project
to ensure a quality manufactured and installed product at a competitive price. In
addition, our sales people are qualified
to recommend design and fixing details
that will suit the personal taste of the
home owner and the style of the house.
Steel Studio International has recently signed a licence agreement with
EE Stairs Holland to offer their superior
custom designed range of spiral, helical
and straight staircases.
These staircases are every architects dream. With cutting edge design and modern and classic features
theres a product to suite every home
from classic to the ultra modern architectural masterpiece.
We are proud to be associated with the design team on EE Stairs
and stand for the same motto; exponent
of excellence. Quality is guaranteed as

Steel Studio International

Leading with

The companys cutting edge installations in South Africa

and further afield maintain its REPUTATION among its
clients, builders, architects and developers

16

Material matters
Over the years Steel Studio has educated industry professionals on the benefits of using stainless
steel as opposed to other steel products as the
preferred material for balustrades. Were now
starting to see some clever use in architectural
designs for both exterior and interior applications
because of its appearance, strength and high
corrosion resistance.
It is an added benefit that stainless steel
is consistently one of the most environmentally
friendly metals commonly used in construction.

each staircase will be manufactured in our Johannesburg factory using the same high grade materials as with our balustrades. Of course our installation teams will also be involved in completing
every order.
These staircases can be installed in both
residential and also commercial projects and
have already captured the imagination of our architects, designers, developers, contractors and
home owners.

Back to the future

With the World Cup and its associated infrastructure development being a thing of the past and
the global economy taking longer than expected
to recover, what does the future hold for Steel
Studio International?
Were as busy as ever, says Rob Blackbeard although he does concede that they have to
look a little harder for the work.
Weve managed to weather the economic storm and have worked hard not to let any
of our staff go. We have made some changes to
the business to ensure that we are as efficient as
possible.
This includes opening a Cape Town

Its 100% recyclable; in fact recycled material

is used in 65% of all new stainless products.
Its corrosion resistant, durable and its long life
cycle provides a cost benefit that outstrips the
benefits of using any other material on a project. If the correct grade of stainless steel is
selected, it should last the life of the structure.

factory in March this year to service Cape Town

in particular but also the Eastern and Western
Cape. A regional factory not only complements
the capacity of the existing 3 000m2 facility
in Johannesburgs Linbro Park but also reduces
transport costs and speeds up project turnaround
times in those regions.
Its a strategy that seems to be working. Since opening, the factory has been involved in some of the citys most prestigious
projects including Porsche Century City, Shoprite Wellington and Raiel offices. Sales in the
region have tripled over the past three months;
creating the need to move to larger premises in
Montague Gardens.
In addition, a national agent network exists with sales offices in Mpumalanga, Limpopo,
KwaZulu Natal and the Garden Route.
There is also an increased focus on projects beyond our borders.
Were re-focussing on the African continent. Were currently active on projects like the
new airport in Swaziland and Manda Hills shop-

17

ping complex in Zambia as well as a few smaller

installations in Botswana and Nigeria
The US is also a growing market for
Steel Studio International. They formed Steel Studio USA, which is a subsidiary of Steel Studio International in California in early 2008 and now
also have agents in Tampa, Florida.
We are starting to see some recovery
in that market and the job opportunities for us are
growing.
The company works across the country
on a mix of commercial and residential projects. But the work is quite different to what is
delivered here; its a pre-assembled system that
is delivered in kit format for which Steel Studio
owns the patent.
But whether in South Africa or beyond
our borders, Steel Studio International intends
to continue its innovative and pioneering approach to creating world class stainless steel
masterpieces installed to the highest standards
and therefore maintain its enviable position as
market leader.

Stainless
steel touches
Steel Studio is
responsible for
the 37 floors of
stainless steel and
glass balustrades
on the W Hotel in
Austin, Texas (far
left). It is also a
key player in the
revamp of Sandton
City (left) by
bringing together
the complex detail
of timber, stainless
steel and leather
balustrades. The
Makro offices
in Sandton are
another example
of Steel Studios
extensive finishing
touches (far left
bottom)

Ammonium Sulphate Plant

Another substantial order was
for the construction of a large part of
the ammonium sulphate plant by VWS
Envig. This order included three ammonium sulphate crystalisers; support
structures; three heaters and one condenser; as well as tanks and ducting.

www.metsond.co.za
Tel: (031) 464 0510 Fax: (031) 464 0625 Cell: 083 449 5540 Contact: Nolan Green

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SO2 Converters
Metso constructed two SO2
converters measuring 14.5m in diameter by 27.5m high. They each weighed
a mammoth 450 tons, excluding the internal heat exchanger, which weighed
an additional 60 tons each. Transport
restrictions meant heat exchangers had
to be installed on site.

The material of construction

for the converters was 304H stainless
steel. The order was placed by Bateman Minerals and Metals.

Metso ND Engineering was

one of the larger project contributors
in terms of equipment fabrication.
We would like to thank each
of our respective clients for their faith
and confidence in our ability to perform, says Metso ND Engineerings
Nolan Green.
In terms of equipment sourcing, the Ambatovy project can be described as a truly global project.
It is extremely satisfying that
Metso ND Engineering has been able
to be such a positive example of the
capabilities of South African manufacturers and the country as a whole,
says Green.

Fabricated tanks
Metso also built 66 of the
stainless and carbon steel shop fabricated tanks for Dynatec Madagascar
through SNC Lavalin Toronto.

November 2010

The Southern African Institute of Welding

(SAIW) recognised exceptional achievement across a broad spectrum when it
presented its annual awards recently.
The Institutes highest honour, the
Gold Medal Award, went to welding
stalwart Prof Andy Koursaris in recognition of the impact he has made on training welding engineers and his contribution to the development of the Institute.
Introduced in 1966 this award
recognises a company or an individual
who has significantly contributed to
welding technology or to the Institute.
In SAIWs 62nd anniversary year they
were pleased to have a winner who is
widely acknowledged for his contributions to both.
Born in Cyprus Prof Koursaris came to South Africa in 1975 and
joined Wits University carrying out research which lead to his PhD. He became a lecturer at Wits in 1979 and remained with the university until his recent
retirement in June this year.
For the last 10 years or so Prof
Koursaris has been the coordinator of the

Wits/SAIW welding engineering programme. He took over the programme

when it was undergoing significant
change and has been primarily responsible for its rationalisation and alignment
with the International Welding Engineer
programme of the International Institute
of Welding. The programme still runs
successfully and has produced well in
excess of 100 welding engineers.
A prolific publisher, Prof. Koursaris has more than a 100 publications
to his name. He is widely respected for
his technical acumen and the contribution he has made to many areas of the
industrial application of metals and materials over more than 30 years.
The Harvey Shacklock Gold
Medal Award for best Technical paper
went to Morris Maroga of Eskom for the
paper Material Selection and Design for
Supercritical Boiler Pressure Parts which
was presented to the SAIW Technical
Meeting in October last year.
This award was created in
memory of Mr Shacklocks contribution
to the welding industry and was first

19

presented in 1949. It is not an annual

award and is only given if papers are of
a high enough standard.
It was noted that it was the
third year out of four that the award was
made in recognition of work that originated from Eskom and testament to the
development work that goes into ensuring welding in power stations is treated
with the respect it deserves.
Top student Mark Sloan received the Phil Santilhano Award which
is presented to the best student on the
Institutes flagship courses in Welding Supervision and Inspection. Mark achieved
distinctions in both the Level 1 and Level
2 Inspector courses. Since completing
the inspector courses he has also gone
on to successfully complete both Competent Persons courses and the ASME
Codes course.
Phil Santilhano was the SAIWs
first full time employee who passed away
a short time after joining the Institute as
its technical director. The memorial award
was established in 1984 in recognition
of his contributions to the industry.

SA Institute of Welding The Gold Medal Award went

to welding stalwart Prof Andy Koursaris (left), while the
Harvey Shacklock Gold Medal for the best technical paper went to Morris Maroga of Eskom. With him are (from
left) Danie Odendaal, Roman Crookes & Matshela Koko

recognised at awards

finalises Ambatovy project

By the end of the year, the Ambatovy

Project in Toamasina, Madagascar, will
be reaching its completion. By 20132014, this record breaking, worldclass project will be the worlds largest
lateritic nickel producing mine, with an
annual capacity of 60 000 tons of high
grade nickel, 5 600 tons of high grade
cobalt and 190 000 tons of ammonium
sulphate for at least 27 years.
Metso ND Engineering is
proud to have been a part of this
benchmark project.

Welding stalwart

focus on

WELDING

Metso ND Engineering

PROFILE

company

www.remkor.com

62 THIRD STREET U WEST TURFFONTEIN U JHB U SOUTH AFRICA

TEL: 27 11 433-4985 U FAX: +27 11 433-4951 U sales@remkor.com

Since 1981, Remkor Technologies have

delivered world class products to Africa
and beyond

CAD Design
Tool & Die Manufacture
Laser cutting
Bending
CNC punching
Metal pressing
Robotic welding
Automated powder coating
Continuous foam gasket sealing
Laser engraving
Scotchbrite nish, stainless steel
brushing

SASSDA AWARD WINNING

MEMBER SINCE 2000

The Southern Africa Stainless Steel Development Association (Sassda) has announced
the appointment of Bernard Maguire as
chairman to the board of directors of Sassda, and Peter Viljoen as vice-chairman.
Maguires board appointment
follows the chairmanship of Sampie van
Rooyen, who retired from the industry recently. Maguire is a director of Cronimet
RSA, the local arm of the international
Cronimet Group, a recycler of stainless
steel scrap. Viljoen is the managing director of Stainless Fabricators, a heavy-medium fabricator.
Sethakgi Kgomo, the newly appointed executive director of Sassda,
says: Sassda supports the voting process
followed in the new boards election and
we look forward to their input.
I would like to thank the outgoing
chairman Sampie van Rooyen for his valuable contribution over the past two years,
says Kgomo. I congratulate the respective candidates on their appointments and
thank the members for their participation in
the voting process.
The other board members of Sassda
are: Colin Wilson from Euro Steel, Charles
Cammel from Columbus Stainless, Kit Williamson from Macsteel VRN Stainless, Tony
Gerrans from Grotto, Mike Campbell from
NDE and Jason Naud from Rimex Metals. Sethakgi Kgomo from Sassda holds a
standing seat.
Members appointed to the main
committee are: Leon Reeves from Steloy
Casting, Louise Benson from Hendler &
Hart, Andre Visser from Fabrinox, Wilfred
Allen from Welfit Oddy, Erich Kotzenmacher from Fischer, Tom Rice from Bohler Uddeholm and Rob Lawrence from Air Liquide.

appoints
new board

Sassda

The outgoing Sassda board

CHAIRMAN is replaced by
Bernard Macguire from Cronimet

Colin Wilson is the chief executive

of Euro Steel

Mike Campbell
is a director at NDE
Tony Gerrans
is the chief executive of Grotto

21

Board member

Board member
Board member

November 2010

Kit Williamson is the managing

director at Macsteel VRN Stainless

Charles Cammell is senior commercial

manager at Columbus Stainless

Board member

Board member

Board member

Jason Naude is a
director at Rimex Metals

Sethakgi Kgomo holds a standing seat

on the board as executive director

Sassda Executive Director

Bernard Maguire
is a director at Cronimet RSA

Chairman

Peter Viljoen is the managing director

of Stainless Fabricators

Vice-Chairman

focus on

SASSDA BOARD

22

attract the levy. Middelburg Steel, now

Columbus Stainless, agreed to collect
the levy on behalf of the membership
of Sassda. The situation described here
continues to this day.
During the past four years a
group of companies importing various Sassda defined primary product
agreed to levy their imported product
on the same basis as Columbus product.
All products are levied with the same
amount per kilogram.
Most, about 80 percent to 90
percent, of Sassdas activities are financed by this levy. Sassda is therefore
extremely dependent on the levy to pursue the agreed purpose.
November 2010

Sassda can only appeal to members to support the levy so it can pursue
activities in the best interest of the membership. What needs to be considered
is the response to importers, in particular,
those who do not wish to collect and pay
over the levy to Sassda. Logically importers who do not comply with the request
by the members to pay over the levy
should not be members of Sassda.
Finally, it should be kept in mind
that the payment of a levy merely seeks
to provide more funds to assist in developing stainless steel marketing in South
Africa. This in turn assists in local conversion of stainless steel thus creating jobs
and income for South Africans.

November 2010

Air Products places a key emphasis on effective supply chain management. In fact,
the company sees its supply chain methodology as integral to success in maintaining its leading market position within
the gas industry in South Africa.
This is according to Nalen Alwar, supply chain manager of Air Products
SA. Supply chain practice and methodology within Air Products has become a
key focus area, he explains. However,
we have become increasingly aware over
the years that an effective, well-integrated
supply chain is fundamental to the success
of a company, both from an operational
and a strategic perspective.
At Air Products, we aim to be
both lean and agile in our approach, or
leagile, and that ethos forms the basis of
our supply chain methodology.
He says: The two objectives for
us are, firstly, to be efficient, and secondly, effective. It is an interesting balance,
and sometimes of necessity there is a
trade-off between these two objectives.
Alwar says efficiency, in simple
terms, is about keeping costs down, while
effectiveness relates to how the company
pursues its overarching strategic goals. In
pursuing those goals, it is necessary to become both adaptive (responsive) and resilient, and therefore effective in a dynamic,
ever-changing environment.
Donovan OGrady, Distribution Manager for the Bulk division of Air
Products SA, explains that, from an operational point of view, the use of the best
available technology plays a pivotal role,
notably in distribution.
OGrady says: In distribution,
we use specialised software to ensure
proper route planning and logistical efficiency. The programme predicts the delivery schedule, creating the optimal route in
order to save on mileage and fuel.
We also manage our vehicles
by the use of GPS and tracking devices,
which has a number of functions, includ-

ing ensuring safe driving practices.

Air Products uses a telemetry
system, which is key to managing supply and demand. The system monitors
our customers supply levels, and alerts
us when replenishing is required. This is
extremely effective in enabling us to plan,
and to always be ahead of the game,
OGrady says.
Technology is also an enabling
factor, as it provides key feedback mechanisms, says Alwar. Technology allows
for analysis in order to examine our own
efficiency levels, he maintains. The data
provides very useful feedback for analysing costs and to what extent a transaction
brings value to the company.
While predictive software and
enabling technology provides useful feedback mechanisms, Alwar warns of the
dangers of relying heavily on historical
data. For example, tank levels change all
the time according to the changing needs
of a company. There is also the wider
environment which fluctuates constantly,
he says, citing the example of the recent

23

economic downturn. That is why the supply chain is referred to as a Complex,

Adaptive System demand fluctuates at
different rates, it is a living system, which
is why a company needs to respond and
be able to adapt accordingly.
Part of a companys capacity to
adapt to change is dependent on what
Alwar calls their regenerative resource
people. For a great supply chain,
which really works, you need broadthinking people; people who think flexibly
and efficiently, always keeping in mind
the overall interests of the company. In
an intra-firm situation, it is easy to focus on
individual business units, and lose sight of
the bigger picture, he cautions.
Air Products encourages knowledge-sharing behaviour, which is critical
when keeping in mind the overall company strategy. Communication on all levels is key, to gauge what is happening in
the market. Thus, the marketing function
forms a pivotal part of the supply chain,
as do other ways of information-sharing,
such as regular, informal meetings and
external and internal surveys, which Air
Products conduct regularly, Alwar says.
Air Products successful supply chain methodology is in part due to
progressive and innovative leadership,
according to O Grady. He attributes
the companys thinking-out-the-box approach to visionary leadership. You
need to be stay one step ahead, in supply chain management, he maintains,
which requires flexible, creative thinking
in a dynamic environment.
Alwar agrees, adding the importance of being able to stretch in terms of
capacity, as demand requires, but also
being able to retract in leaner times.
No longer is supply chain seen
as an isolated, linear process. It is a highly complex management function that requires a company to constantly adapt to
a changing environment in order to maintain the leading edge, he concludes.

a priority, says Air Products

Sassdas levy unpacked

The purpose of the Southern Africa

Stainless Steel Development Association
(Sassda) is: To provide a platform for
the members of Sassda to collectively
promote the growth and development
of stainless steel used and converted
in South Africa. This is the focal point
around which the association centres its
activities.
A platform is an organised
structure, neutral and independent, a facility where members can come together
pursuing common interests using the staff
and infrastructure provided. Members
can come from anywhere in the world
and be approved and paid up in terms
of Sassdas rules. Collectively means
Sassda staff and appropriate interest groups coming together. Promote
growth and development means carrying out generic promotion and development of stainless steel usage and conversion in South Africa.
Sassda is able to fulfil this purpose by providing education, training,
skills development and technical advice. It communicates and disseminates
relevant information. Sassda develops
the industrys capacity and capability
as well as its sectors and sector initiatives along with networking with key
stakeholders to influence and promote
the interests of the membership. To do
this Sassda needs money.
Prior to a levy being introduced
on stainless steel material, Sassdas
available funds came from membership
fees and other minor activities. Middelburg Steel provided technical support.
During the 1980s, under the
guidance of Ian Elsdon-Dew, it was
agreed at an Annual General Meeting
to introduce a levy.
The levy applied only to product produced and sold into the domestic
market to be converted for local consumption. Product that was exported, or
was to be converted for export, did not

Flexible supply chain

PROFILE

company

A question of money:

FINANCES

focus on

24

The naming of 3CR12

3CR12 was originally described as a Chromium Containing Corrosion Resisting steel. The brand name
of the steel was shortened to 3CR
and then became 3CR12. The 12 was

What is 3CR12?
3CR12 is a utility ferritic stainless
steel, suitable for use in the corrosion resistance needs gap between higher alloyed
stainless steels and coated carbon steels. In
many corrosive environments, it has proven
to be more cost effective than carbon steels,
including in wet abrasion applications.
3CR12 is referred to as a utility
ferritic stainless steel because it can be
used in a much wider range of gauges
than conventional ferritic stainless steels,
such as 409 and 430. These grades
tend to be brittle and thus their use is
limited to those applications requiring a
maximum gauge of about 3mm. 3CR12,
on the other hand, is tough and retains
this toughness, even after welding. It can
thus be used in a wide range of applications in thicknesses of up to about 30mm.
3CR12 is the original lean alternative stainless steel in hot rolled applications. Unlike the lean duplex stainless steels, which are seen as lower cost
alternatives to conventional austenitic
stainless steels, 3CR12 is often used as
a replacement for coated carbon steels.
3CR12 thus contributes to growing the
overall stainless steel market rather than
substituting within the stainless family. The
invention of 3CR12 proved successful in
opening many new avenues for the use
of stainless steel, which had previously
not existed.

3CR12 was invented in South Africa in

1977 and was commercialised in March
1981 by Middelburg Steel & Alloys, now
known as Columbus Stainless. Since then,
a total of one million tons of 3CR12 has
been produced at the Middelburg plant.

3CR12 Variants
Columbus Stainless produces
two 3CR12 variants. 3CR12 is the
original Columbus proprietary grade. This
steel is titanium stabilised to improve the

brought in to indicate similar corrosion

resistance to the 12% chromium AISI
409, from which it was originally developed. The double meaning of CR and
Cr is obvious and intentional.

November 2010

resistance to sensitisation after welding.

3CR12L was introduced in 1989 and
is a low carbon unstabilised grade. This
grade conforms to the requirements of
ASTM A240/A240M/ASME SA240/
SA240M (UNS designation S41003)
and EN 10088-2/EN 10028-7 (EN
number 1.4003). In practise, both
grades are resistant to sensitisation if the
welding heat input is controlled between
0.5 and 1.5kJ/mm and certain specific

3CR12 Coal wagons

The manufacture of coal wagons in 3CR12 is the largest and probably
the most successful application in the 30 year history of this utility ferritic stainless steel. 3CR12 has been used for this application in South Africa and also
in several other countries such as the US, UK, Belgium and Australia.
The first application was in South Africa, as a replacement for weathering grade carbon steel, which, due to a combination of corrosion, fatigue
and abrasion, was only lasting about 8 years before complete failure.
The first 3CR12 prototype wagons went into service in 1984 and, according to authoritative sources, are still running today, with almost zero loss
of thickness. Once 3CR12 was recognised as the ideal solution to this problem, the process of re-plating the entire fleet started in the late 1980s. Since
then, all new coal wagon requirements are specified in this stainless steel.
Early in the process it was realised that a significant cost saving could
be made by using 3CR12 in the unpickled condition, as the abrasion of the
coal quickly removed the mill scale in service. While the cost of the wagon is
slightly higher in 3CR12, the life cycle cost benefits are clear.

Photo
courtesy
of TRE

Coal
wagon
built in
black
(unpickled)
3CR12

as the ultimate utility ferritic

3CR12 proves itself

3CR12

focus on

November 2010

Bus frames (above)

Photo courtesy of MAN
Truck & Bus
The Duple bus (left) after
10 years of service, no
corrosion was found
25

3CR12 Electrification masts

These masts were installed
in South Africa in 1982 on the
Port Elizabeth to Barkley Bridge
rail line. The line runs from the Port
Elizabeth harbour along the coast
to North End and then moves inland. During high tide and windy
conditions, the masts are constantly exposed to the sea spray.
General discolouration of the
masts is evident as the 3CR12 has
developed a uniform rust coloured The masts outside Port Elizabeth
patina. The marks from the press- harbour, with a close-up view of the
brake used to form the sections of uniform rust coloured patina that has
the mast are still visible after all formed on the surface
these years.
The masts are in excellent condition despite being exposed to a severe
marine environment for the past 28 years.

3CR12 Bus frames

Bus manufacturers are able to construct tough,
long-lasting frames using 3CR12 tubular sections with
the added advantages of minimal maintenance, extended service life and lower operational costs.
3CR12s corrosion resistance is vital for long-term
structural safety in passenger carrying vehicles where
the structural integrity and crash safety of the frame
is maintained to the end of the vehicles service life.
3CR12 sheets are also used for the flooring and steps
of the bus.
In 1986 Duple in the UK was the first bus coach
builder to utilise 3CR12 for bus frames. A Duple bus
was inspected after 10 years in service and after logging more than 1.6 million kilometres. The luggage
and roadside areas of the 3CR12 frame were painted
for aesthetic purposes and thus an endoscope was
used to examine the inside of the tubes.
The inspection revealed no evidence of corrosion in the tubes. On the surface of the 3CR12 tubes,
where there was a loss of paint, there was slight discolouration, but no evidence of corrosion.

3CR12 Applications
3CR12 has found widespread use in numerous industries from
steam generating turbine blades, to
wear plates in gold mines, from sports
car chassis to roofing and cladding.
3CR12 is successfully used
in wet sliding abrasion conditions and
materials handling applications in the
agricultural, mining and power generation industries. It is widely used in
the transport industry, finding applications in passenger vehicles, rail freight
wagons and coaches, trailers, trucks
and sports cars.
In industrial structural applications, 3CR12 is used for walkway systems (flooring, stairs and hand railing),
cladding and roofing, piping, cable
racking, electrical enclosures and piping and utility bridges. It is also used in
water and sewage treatment applications for dam gates, outlet pipes, tunnel liners, settler tanks, grit separators,
baffles and weirs.
3CR12 is recognised as the
original and probably most specified
utility ferritic stainless steel. It has found
widespread use in most industries for
a wide range of applications, arguably far more than any other stainless
steel grade. It has taken just 30 years
for sales of 1 million tons of 3CR12
to be achieved. This marks a major
milestone for this versatile product.

overlapping welds are avoided.

SUBSCRIPTION

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allowed to stand in the hot sun for weeks
layer on the surface in the presence of on end partially filled with borehole waoxygen, and this passive layer can break ter this water is often home to bacteria
down in de-oxygenated conditions.
which can cause a very aggressive form
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settling out on the surface of the stainless grade is best for an application. Howsteel can lead to the formation of crev- ever, the quality of the answer you will
ices which are oxygen depleted areas, get is directly related to the amount of
and can result in crevice corrosion, or in detail provided to the technical advisor.
very high flow rates can lead to erosion
Incorrect or insufficient detail
corrosion.
could result in an extremely expensive
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failure.

Interested in getting your favourite stainless steel

magazine delivered to your client?
Contact us for a free subscription.
E-mail: melissar@polka.co.za
or call: 0861 727732

Of the queries that typically arrive on the

Technical Desk about 80% would probably fall into one of the following two
categories below.
They are: What grade is this
stainless steel, and what is the locally
available equivalent? and What
stainless steel should I use in this application?
This second question is a lot
more difficult to address and requires
quite a lot of specific information relating to where the material will be used.
Generally, the information supplied to the advisor is insufficient to
make a sound material selection, and
we frequently suggest to the caller that
he or she needs to find out these details
before we can commit to an opinion.
For an immersed application,
such as process plant and equipment,
the sort of detail required is:
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contact liquid. This must take into account trace elements as well as the
major constituents, as relatively small
amounts of ions such as Cl, F or Br in
an otherwise innocuous acid can result
in a dramatic change in the corrosivity
of the solution.
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Stainless steels generate their corrosion
resistance by the formation of a passive

with Ken Dewar

TECHNICAL DESK

from the

For further information please contact:

IDC Call Centre 086 069 3888
Email: distressfunding@idc.co.za
Website: www.idc.co.za

Thus far, the fund has mainly assisted the mining

and primary metals industry as these sectors were
highly affected by the decline in commodity prices.
The fabricated metals, machinery and motor vehicle
industries received the third-largest portion of
funding to date as these were impacted by the
slowdown in consumer spending on luxury goods.
Other industries that received a large portion of
distress funding were the forestry, sawmilling

To date, approximately R3.1 billion has been

committed to distressed businesses in 53
transactions. Meer adds: Approximately 70% of the
disbursed funding has been allocated to companies
in the metals fabrication, motor, clothing and
textiles, mining and forestry sectors. We estimate
that over 17 500 jobs will be created and saved as a
result of this assistance.

One of the main aims of this fund is to assist

companies that were successful before the onset
of the economic crisis to withstand the impact
of the recession and have the ability to continue
growing once economic conditions improve.
Divisional Executive Industrial Sectors Shakeel
Meer comments: Our focus is on businesses that
have the potential to emerge from the crisis. One
of our primary objectives is to create and preserve
permanent jobs as efficiently as possible.

At the onset of the economic crisis in 2008, the

Industrial Development Corporation (IDC) realised that
South Africa would not be spared the effects of the
recession. Proactively, it formed a response to assist
companies that were impacted negatively by the
recession. As a result, the IDC announced that it had set
aside R6.1 billion to support companies in distress.

Throughout this economic downturn, the IDC

continues to provide support for existing clients
through advice and restructuring of funding
facilities. Furthermore, we are hosting various
workshops and other forums throughout the
country in an attempt to advise and partner
with businesses in distress. These will afford
entrepreneurs the opportunity to assess their
options and understand how the funding works,
concludes Meer.

The role that IDC plays in these transactions goes

beyond that of a financier. IDCs participation in the
process frequently involves intense negotiations,
thus giving comfort to other partners in the business.
Recent amendments to the Distress Fund guidelines
make assistance to businesses in need even more
accessible. These amendments include the waiving of
internal fees (e.g. raising-, holding-, commitment- and
internal legal fees) by the IDC and reduced capital
security requirements. The fund also enables the
business to repay banks funding first, once it has
turned around, and does not insist on sureties from
the shareholders, although these are a requirement.
The Distress Fund will also be implemented alongside
other initiatives e.g. the Training Lay-off scheme and
other dti incentives, which will result in a full solution
for the distressed business.

and transport industries. The fund is, however,

committed to assisting most businesses that fit the
criteria, not only those in specific sectors.

IDC allocates R3.1 billion to distressed companies

28

IDC

November 2010

it quickly, normally within 14 to 21days from the time

that the contract or order is awarded, says senior account manager Achmat Adams.
The users of these products are mostly strong,
but smaller businesses with limited cash flow. The IDCs
FasTrak aims to alleviate financial strains on these businesses that dont have funds to satisfy their orders, which
may result in the business either losing the order or using
unconventional ways of funding, if not assisted. FasTrak
is just one of the various examples of the IDC identifying
a need, and satisfying it through an innovative product,
says Adams.

will play a significant role in future projects, they said. In particular, the use of
lighter steel structures - slender members and cable structures - will increasingly
manifest itself in our industry.
According to the judges, steel was the only feasible material for the construction of the roof elements. The tolerances that had to be achieved within the
steelwork to support the rooftop glass panes would have been impossible with any
other material.
To achieve the ambitious free-span requirements of 58m, which includes
a cantilever section of 14m, a lightweight suspended steel structure was adopted.
Covering an astounding 37 000m and weighing a total of 4 500 tons, it is the
largest glass-covered roof in Southern Africa.
One of South Africas leading steelwork contractors, DSE, noted that the
stadium was a complex structural project and was certainly one of the most intricate steelwork structures ever produced in their workshop.
The judges said that a project of this magnitude has extreme architectural
and engineering demands all of which were met in the most professional manner.

IDC announces quick short term finance

Industrial Development Corporation (IDC) has
recently launched a new ring-fenced short-term finance
product, FasTrak. FasTrak is a once-off, non-revolving
credit/loan facility, applicable only to clients who have
won contracts, tenders and/or orders and have an
urgent need for bridging assistance for a limited time
frame. The product seeks to close the gap by promising delivery of the funding and/or guarantees, within
14 days, provided all the information required is at the
disposal of IDCs International Finance Department.
Businesses who require bridging finance need

Cape Town Stadium scoopss

Overall Winner at Steel Awards
In a year in which some of the
most outstanding entries since the inception of the Steel Awards were received,
prompting Southern African Institute of
Steel Construction (SAISC) executive director Dr Hennie de Clercq to say perhaps the best ever, Cape Town Stadium
has been named the overall winner of
Steel Awards 2010.
The SAISC hosted the Steel
Awards, held concurrently in Johannesburg, Durban and Cape Town on
the 15th September 2010. The Aveng
Group was the main sponsor.
The judges said that the Cape
Town Stadium was a magnificent structure with some of the best steelwork they
have ever seen. The execution of the
steelwork, some of it fabricated locally
and some of it imported, is testimony to
the genius of the project team, which
comprised engineers, fabricators and
contractors from all round the globe in
a collaboration of which they and the
whole country can be proud.
They added that this project has
been an eye-opener to the excellence
that can be achieved in the industry with
lasting benefits for local industry generally. The transfer of knowledge and skills

STEEL AWARDS

NEWS

industry

Tel (011)79
3 369
5/8 E-mail projects@rimexsa.co.za

NDE opens sales office in Germiston

NDE, leading supplier of stainless steel materials, has
opened a new sales office in Driehoek, Germiston to bring service
and stock closer to its East Rand customers.
We have put ourselves in the middle of our East Rand customers, with almost our full stock-holding of stainless steel products,
to shorten collection and delivery times, says Hardy Esterhuizen,
NDE director based at the West Rand branch.
Stock at the East Rand depot includes flat product, sections, tubing, pipe and fittings.
With plenty of parking and a staff of five, NDE Germiston
is geared for quick turnaround for walk-in collection customers and
for deliveries.
The East Rand will be humming in the future when the
toll road infrastructure upgrade starts and so it makes sense for us
to offer our clients less costly, speedier collections and to position
ourselves now for that activity, says Esterhuizen.
Telephonic orders are still placed through the same sales
team on 011 472 1659, with picking slips issued in Germiston
and material ready for collection or delivery within 30 to 60 minutes.
NDE Germiston is at 120 Cocopan Crescent, Driehoek,
close to the Albany Bakery.

NEWS

industry

www.rimexsa.co.za /www.rimexmetals.com

NDE

30

Sassda sponsors awards

Sassda was a joint sponsor of
the young Welder of the Year 2010
competition held in October. Sassdas
new executive director, Sethakgi Kgomo, was on hand to congratulate all
the winners.
Houston Isaacs (pictured right
with Sassdas Sethakgi Kgomo) won
the Overall Winner award for the
stainless steel section.
East Cape Midlands FET College International Welder in training,
Chris van Zijl won the Young Welder
of the Year 2010 competition and will
represent South Africa at the 41st WorldSkills Competition to be held in London
in October 2011.
He also won the Carbon Steel
Category by achieving the most marks
on the pressure vessel and was the only
competitor whose vessel was able to
withstand the required pressure test.
West Coast FET Colleges Houston Isaacs, who came second in the

Lamberti has considerable knowledge and experience with exotic material fabrication, which is also
undertaken in-house by an associate company.
Filterscreen has developed a new design of
wedge wire screen that is currently being used extensively in gold plants and sugar refineries, both in Africa
and Europe.
Instead of fully welded strainer assemblies the
new design comprises a reusable main body assembly
and a replaceable screen sleeve.
Only the replaceable screen sleeve is a routine
consumable item, resulting in considerable stockholding
savings. The replaceable screen sleeve is held down by
two locknuts on the reusable main assembly, into which it
is also recessed, so a wedge wire screen can be rapidly
cleaned or exchanged.
The replaceable screen sleeve slides over an internal X stiffener or distribution pipe so, overall, the new
design assembly from Filterscreen is both extremely robust
and cost effective.

November 2010

pressure vessel section and won both the Stainless Steel and Aluminium categories,
was the overall runner-up.
The competition, which was held in October, is run biennially by the Southern African Institute of Welding (SAIW) at their headquarters.
SAIW training manager, Etienne Nell, says that the standard was exceptionally high this year compared to previous competitions. We made some changes
to the entry conditions which resulted in a record number of entries from almost all
regions in the country. After a careful selection process, 17 competitors, including
two young women, took part in the finals. I am pleased to say that we witnessed the
highest quality of welding in the history of the competition, Nell says.

Filterscreen cleans up with new screen design

Glyn Hughes-Jones of Filterscreen has been
designing, supplying and fabricating premium quality
wedge wire screens since 1975.
These screens can be supplied as flat or curved
panels, cylinders (from an OD of 22.0mm) or cones, in
apertures from 25 micron. With over 20 profile wires
and 18 associated support rods to choose from the
screen construction permutations are considerable. The
wedge wire screens are manufactured in over fifty standard materials.
Given these variables, the premium quality
wedge wire screens supplied by Filterscreen usually need
to be manufactured to order for a specific application.
Keith Lamberti, the technical director, has been
with Hughes-Jones for over 20 years and has had extensive experience with power plants in the aerospace
industry, as well as being responsible for the design of
robotic welding equipment used extensively in the automotive industry.

NEWS

industry

YOUNG WELDER

FILTERSCREEN

Understanding whistleblowing
As part of Sassdas drive to keep the industry up to
date regarding regulatory issues, this month the association
is exploring whistleblowing with Lorraine Martin from Open
Democracy Advice Centre.
According to the UK Committee on Standards in Public Life, whistleblowing is raising a concern about malpractice within an organisation or through an independent structure
associated with it.
Whistleblowing Protection Legislation through the
Protected Disclosures Act 26 of 2000(PDA) sets out a clear
framework to protect employees who disclose criminal and
other irregular conduct in the workplace from victimisation
and dismissal. This covers all misdoings from criminal offence, failure to comply with a legal obligation, miscarriage of justice, endangering health or safety, damage to

REGULATORY UPDATE

NEWS

sassda

the environment and unfair discrimination.

If you need to disclose information, you should follow the following procedure:
1.
You may seek legal advice from a lawyer or trade
union. The Open Democracy Advice Centre (ODAC) runs a
free, confidential, legal advice helpline. The telephone number is 0800-525352.
2.
You may disclose the wrongdoing to your employer. It has to be someone more senior than you but it
does not need to be your line manager. You may disclose
it to the chief executive or chief financial officer, board of
directors.
3.
Under certain circumstances (Section 9 of the PDA)
you may disclose the wrongdoing outside of the organisation. This is called a wider disclosure and to get the protection of the Act one needs to meet certain conditions.
It is best for employers to have a whistleblowing
policy that gives clear guidelines to employees as to how to
manage whistleblowing. This will also assist managers as to
what the correct procedures are.

32

Where did you grow up?

Polokwane in Limpopo Province.
What companies have you previously worked for?
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I understand that your nickname is Cowza MaComms, what does
it mean and how did it come about?
Cowza is an aggregation of my surname, which literally translates to Cow and MaComms is an affectionate name
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warm person I am.
What are your career highlights?
My career highlights are too numerous to mention, but I
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has been my second home.
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marketing, communications, company direction, general management and law. I believe this gives me an edge in managing any
enterprise with the tool-kit of skills that I have acquired. I am also
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What is your best career achievement?
I have been fortunate to have worked in various companies
where I was able to grasp and emulate the paragon of good leaderVKLS$W*URXS)LYH,KDGWKHSULYLOHJHRIZRUNLQJDQGUHSRUWLQJWR
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emphasis is on a methodical approach and structure. It worked very
well for me and I am highly indebted to them for shaping my thinking
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What are you currently reading?
%HVLGHVUHDGLQJKLVWRU\RQWKHJDOORSWKDWLVWRVD\WKHGDLO\
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MRXUQDOSUHVVLQFOXGLQJWKH)LQDQFLDO0DLOWKH(FRQRPLVWDQG(QJLneering News. My current reading is Lawless World by Philippe

ethakgi J Kgomo, the newly appointed executive director of

Sassda, is a well-rounded business executive with a solid trackrecord with major business entities in industries including
broadcasting, arms & defence, oil & petroleum as well as construction and engineering. He was previously the chief executive of Nkhumishe Kgomo Management Services and Investments and he serves
on the board of Pikitup Johannesburg. Kgomo was appointed to the
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Committee at the beginning of this year. He also serves on a number
of small and medium sized organisations in the tourism and hospitality industries and is a member of a few development trusts.

November 2010

Sands, a leading International Law practitioner. Sands discusses

the nature of international law as being applied in the modern
world. I am thoroughly enjoying it.
+RZGR\RXGHQHKDSSLQHVV"
Happiness, for me, is a state of mind. It is what you make
it out to be. It is your attitude towards your environment: family,
friends, work and the broader society. If there is anyone who can
make oneself happy it is you, as an anthropocentric being, from
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you forge. You are what you think. If you think positively, the
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generates a negative emotion called unhappiness.
Describe your perfect weekend?
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family and friends, especially the Kruger National Park, or visiting my hometown of Polokwane to spend some quality time with
my mum and siblings.
Why stainless steel?
I have been fascinated with steel and structure since my
childhood. I always tell my friends that because of this fascination,
I should probably have pursued engineering as a profession. Stainless steel is beautiful, durable and epitomises quality.

SETHAKGI J KGOMO

SUROH