‘Possibility is everything’ at Steval Engineering but with new challenges emerging all too frequently for companies working with steel, how do you go about ensuring a smooth pipeline for the future? Steval’s answer – come up with a sound business strategy.
Although it seems as though 2016 is going to be another difficult year for the steel industry and those operating within it, there is reason to be hopeful for companies who have built up a strong reputation over the years.
Creamer Media’s review of South Africa’s steel sector research report, Steel 2016, found that ‘large-scale stimulation is needed to grow the steel industry and market, as the industry has recently been fulfilling only small orders for various projects as a means of simply obtaining work and surviving’. But for those that have built a strong reputation, based on quality service, innovative product offerings, timely business strategy and diversification, it seems that the future is bright.
Take Mpumalanga-based Steval Engineering, a company with a long history and a reputation for excellence. This is one business operating in the structural steel sector but managing to thrive where others are faltering.
Founded in 1997 by current Directors Mike Naude and Barry van der Merwe, Steval Engineering focussed on the erection and fabrication of structural steel, mainly tanks, vessels and storage solutions in the sugar milling, paper and pulp industries.
Today, the company is a larger, better-equipped outfit with offices in multiple African countries, global customers, hundreds of employees and state-of-the-art facilities.
Steval specialises in the fabrication and erection of structural steel, mechanical installations, piping and plating (SMPP), pressure vessels, spheres, tank farms, bulk storage tanks, civil and building work and engineering procurement construction (EPC) projects.
Clients include Alstom, Eskom, Jindal Africa, African Rainbow Minerals, Xstrata, Murray & Roberts, PPC, Sasol, Hitachi, Illovo Sugar, Mondi, Sappi, Puma Energy and BHP Billiton to name just a few.
The company boasts a long list of successful projects for these big name customers and has proven its mettle in many different environments. Just a few examples include; an expansion project at the ADX Sugar Mill in Mozambique where tanks, piping and structures were installed; an expansion project for PPC in Pretoria at the Loesche Mill; installations at the Burnstone Gold processing plant and Konkola Copper processing plant; fuel depot tank farms with LPG spheres for Glencore in Mozambique; and upgrades and new hydrocarbon storage facilities also in Mozambique.
Steval cites its core purpose – “to experience the sheer joy and pride that develop from making our clients dreams come true when building and completing their projects successfully.”
One of the most important decisions in the development of the company came in 2011. After dabbling in the energy market, a previously untapped sector, Steval Engineering found success after positive installations in the oil and gas industry and so the company decided to officially move strongly into the power market. Also, following contract wins at the infamous Medupi and Kusile power stations, Steval’s reputation burgeoned and the company invested in additional capacity to meet the demands of the energy industry across sub-Saharan Africa.
The company has completed projects in 14 African countries including oil rich-Angola, Botswana, Chad, DRC, Ghana, gas rich-Mozambique, Namibia, Sierra Leone, South Africa, Sudan, Swaziland, Tanzania, Zimbabwe and Zambia and already has established offices in South Africa, Mozambique (Maputo) and Ghana (Accra) – where Eni was recently awarded a new exploration license in the prolific Tano basin.
ENERGY INDUSTRY
Steval’s move into the energy sector has been a fantastic strategy and has resulted in big benefits for the business. African energy, especially oil and gas, is an important sector right now. Some of the largest recent oil and gas discoveries in the world have been in Africa and the demand for electricity to drive growth means that exploration will continue.
The Zohr field in Egypt and the Rovuma basin in Mozambique have had all industry commentators in a spin with talk of how the resources can benefit the respective economies. But the U.S. EIA says that inland infrastructure and restricted port capacity, especially in Mozambique, will hinder the development of these assets. This is why expertise like that supplied by Steval is vital.
At home in South Africa, the Steel and Engineering Industries Federation of Southern Africa (SEIFSA) reiterates the importance of infrastructure development following on from announcements just last month where government stated that it would spend R865.4 billion on public sector infrastructure with a large percentage going on energy and also plans for a new nuclear build in the near future.
“In order to fast-track economic growth in South Africa and the rest of the Southern African Development Community (SADC) region during the prevailing turbulent economic conditions where competition is rife, countries within SADC have to develop infrastructure and transport logistics that would enable them to compete globally,” said SEIFSA Chief Executive Officer, Kaizer Nyatsumba.
As the infrastructure requirements grow from an expanding energy industry Steval remains well positioned to prosper thanks to its ISO 9001:2008 quality certification and also commendation from Alstom, Hitachi Power, Galana Fuel Terminals and BP.
STEEL PRICE
The one negative issue for Steval to navigate, an issue that has cast a shadow over the entire industry, is the price of steel in South Africa.
ArcelorMittal announced recently that it would raise the price of its SA-produced steel in order to combat rising input costs. The company said it would increase the prices of hot rolled coil by 8% on average and plate by 11% with other products also set to feel the rise.
“The global economic developments and the sustainability of the steel industry are among the factors which led the company to increase prices following its monthly price review,” the steelmaker said in a statement.
“The challenges faced by ArcelorMittal South Africa and the local steel industry are still persisting, and they are putting the company and the steel sector in a difficult position,” the company added.
Of course, this means for those like Steval that use steel in their products the choice will be, accept the increase in price or look to imports which are also facing price hikes thanks to government tariffs.
Whatever the outcome, Steval will continue to supply one element that cannot be priced – quality.
“Clients can expect to realise their project outcomes within the constraints of time, cost and scope with high quality products and services – your satisfaction is Steval’s guarantee.
“Steval teams up with clients to ensure that needs, expectations and project dreams become a reality. With Steval Engineering, possibility is everything,” the company says proudly.