Working in a steel industry that has seen more than its fair share of challenge over the past few years is no easy feat but Belville-based, Advanced Galvanising is making the best of the tough times and preparing for growth in the long-term.
After going through a relatively uneasy period, there was good news for the South African steel industry in February. According to the World Steel Association (worldsteel), SA steel production rose 2.7% year on year in January to an estimated 650,000 tons. This followed a 16.3% rise in South African steel production to 7.6 million tons in 2015 compared with a 2.8% decline in global steel production to 1.6228 billion tons. In 2015, steel production decreased in all regions except Oceania, which registered a 4.6% gain.
There was a slowdown in production ear on year in the first half of 2015 to 3.2 million tons and this was mainly accredited to the country’s and industry’s ongoing battle for smooth energy supply. But this issue was addressed during Finance Minister, Pravin Gordhan’s budget speech when he announced that the Treasury had plans for R865.4bn in public-sector infrastructure spending over the next three fiscal years, with a big portion allocated to investment in the steel-intensive transport and logistics sector.
So this provided hope to the industry, and this was welcome following ArcelorMittal’s former CEO, Paul O’Flaherty’s damming review of the industry back in September.
“The South African steel industry is under severe threat – yet we believe its future existence and sustainability is essential to underpin the country’s economic development goals and support the growth of numerous key sectors,” he said in a release for IOL. “Steelmaking contributes more than 1.1% directly to South Africa’s gross domestic product (GDP), and a further 0.4% indirectly.
“The top five steel consuming industries together contribute some R600bn to South Africa’s GDP (15% of the total) and employ more than eight million people.”
So what does this mean for local companies in the steel business? The industry could certainly do with more protection, form a pricing perspective, and more attention from investors, but on the ground, our local steel specialists are performing well, despite all the negative suggestions.
One company which is delivering first-class service, understanding its customers and tailoring its offerings to them, is Advanced Galvanising – a Bellville-based expert galvaniser that has been operating its specialised facilities for big customers for more than 20 years.
WHAT IS GALVANISING?
Galvanizing has become big business over the years, so much so that there is now even a Hot Dip Galvanizers Association Southern Africa (HDGASA). The practice is about protecting metal from rust, prolonging life and minimising operational cost.
Galvanizing involves applying a protective zinc coating to steel (or iron) by submerging parts in a bath of molten zinc. This forms a coating of corrosion-resistant zinc which prevents corrosive substances from reaching the more delicate part of the metal and the zinc also serves as a sacrificial anode so that even if the coating is scratched, the exposed steel will still be protected by the remaining zinc.
Historians says that the process was invented in India but over the years, with the development of new technologies and discovery of new materials, the process has become extremely efficient, safe and trusted – galvanizing is extremely popular in the auto industry and also with steel and iron wire rope production.
The major benefits of galvanizing include prolonging life of metals, reducing maintenance costs over time, increasing reliability, increasing erection time, making inspection easier and faster, and it is also a relatively quick and complete process.
Advanced Galvanising is an expert and CEO, Johan Louw tells Enterprise Africa more about the business: “Advanced Galvanising is a galvanising plant in Bellville. The Prima Group has obtained a share in 1993, and during 2006 we became the proud single owners of the business.
“Advanced is the leading galvanising business in the Western Cape, with a bath size of 14m long, 1.4m wide and 3m deep, and does hot-dip galvanising for a variety of clients in the steel and related industries.
“We galvanise fences, security gates, boat trailers and many other steel constructions. Our process entails covering steel in zinc to prevent rust. Galvanising presents a number of advantages, which makes it the preferred method for rust prevention. These advantages include low costs, easy application, low maintenance costs and durability.
“We are open 24/7 and look forward to serving our customers.”
The Prima Group has three other operating divisions; Prima Service Stations, Prima Tyres and Prima Properties.
Right now, with the industry positioned the way it is, it is essential for companies to focus on their core business and drive growth through quality service offerings. Advanced Galvanising are doing just that, not over stretching the company and growing at a rate that suits the company and industry.
When strength returns to the sector, with opportunities for export being discussed, there will be huge opportunities and companies that have a track record of success in the steel sector will be called upon to drive growth further. Also, as the economic tide turns and money flows from the government back through the economy, construction, automotive and a number of steel-dependent industries will grow. The focus here must be on the long-term and the opportunities that will come further down the road. Advanced Galvanising is well positioned to use its western-cape operations as a spring board to new markets and considering the company is SABS ISO 1461 certified and a member of the HDGASA, offering collection, delivery, design and a host of complementary services, it is in a perfect placed to grow in the future.