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CONTENTSthird quarter, 2014

THIRD QuaRTeR, 2014 1

REGULARS

ADVE

RTS

PROFILE

FOCUS ON

2 Perspective

A message from the executive director, Bill Scurr

30 No Sacred Cows Gary Crawford ponders competitiveness

32 Sassda & Industry News News and events from Sassda and companies in the industry

40 Personality Profile Getting up close and personal with Macsteel VRN’s Conrad Ruh

10 Macsteel VRN

This South African stainless steel stockist is proud to be a vital link in SA’s supply chain

Air LiquideColumbus StainlessGeneral Profiling Macsteel VRNWeldamaxStalcor3MFabrinox

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Case study: Stainless Steel FinishesStainless steel architecture can be greatly enhanced

using innovative finishes and surface structures

Focus on: Numsa Strike Violent protest, intimidation and thuggery are

increasingly being used as a bargaining technique

Focus on: Sassda DevelopmentsA review of the developments made

by the association in the past year

Technical review: Structural applicationsAn examination of the correct stainless steel

to use for various structural applications

Sassda is committed to eliminating corruption and unfair business practices. Are you?www.actagainstcorruption.org

This magazine is printed on recycled, environmentally friendly paper.

Do your bit and share this magazine with your peers. Recycle after use.

®

50th ANNIVERSARY202224

Catalytic ConvertersSouth Africa’s most prolific user of stainless steel

Company DevelopmentsSassda members who have stood the test of time

Tank ContainersThe tank container industry’s roller coaster ride

pErSpECTivEsecond quarter, 2014

CONTACT USPublisher Maverick MarketingEditor / Melissa Rowlstonadvertising Tel: 011 440 5181 [email protected]

Printers Goldfields Press Tel: 011 627 7740 Fax: 011 627 7741

Letters, comments and subscription requests to [email protected]

SASSDABill Scurr executive Director

Reuben Pillay Financial Manager

Mankabe More education & Training; architecture, Building & Construction Sector

Lesley Squires Market Intelligence; Membership; Consumerware, Hospitality & Catering Sector; Import Sector; africa

Michel Basson Sassda Western/eastern Cape

Clive Phillpotts Sassda KwaZulu Natal

Ken Dewar Import Consultant

John Tarboton Technical; Fabrication & Welding Sector

Kim Stevens events Co-ordinator

Tel: 011 883 0119 Fax: 011 883 0183

e-mail: [email protected]

Stainless Steel is published quarterly and is distributed to stockists, distributors, fabricators, specifiers, consulting engineers, architects,

mining, petrochemical and chemical industries, food beverage and pharmaceutical industries, consumer outlets, end-users,

educational institutes and provincial and government departments. Maverick Marketing makes every effort to ensure the accuracy of

the contents of its publications, but no warranty is made as to such accuracy, and no responsibility will be borne by the publisher or

Sassda for the consequences of any actions based on information so published.

all opinions, views and expressions contained in this publication are not necessarily those of the management of Sassda.

The contents of this publication enjoy positive protection under the Copyright act and therefore copyright thereof is expressly reserved.

any copying,publication and distribution of part or whole of the publication is prohibited unless consent is granted by Sassda.

With my tenure drawing to a close, this is the last Perspective that I will write as executive director of Sassda. I have been

at the organisation for longer than I expected, nearly three years now, but the time has certainly flown by. Notwithstanding the occasional times of frustration, I have enjoyed the challenge of realigning Sassda with some of the ideals set out by the Sassda Board. Read more about Sassda’s activities on page 18.

To celebrate 50 years of Sassda, this magazine pays tribute to two of the South African stainless steel industry’s biggest success stories: catalytic converters and the tank container industry. Sassda’s role in both

of these industries was, in many ways, peripheral to their evolution. Nevertheless, as major developments within the industry as a whole, I felt it appropriate that they should be included in the 50th Anniversary history.Catalytic converters remain the largest users of stainless steel in South Africa and the largest employers in the industry. The history of tank containers in South Africa is a stormy one. Chinese manufacturers now dominate the tank container market, but one South African company, Welfit Oddy, continues to fly the flag with considerable success, read more on page 24.

We also pay tribute to members who have survived the test of time - Lockers, Macsteel VRN, Afrox and Schmoltz + Bickenbach were some of Sassda’s first members and, albeit in different reincarnations, still exist today as Sassda members. Read the full history on page 22. As part of the 50th Anniversary celebrations, this edition also has contributions from John Cluett and John Rowe, see pages 26 and 27.

At the recent Sassda AGM, new Main Committee members were elected (or appointed where applicable) to guide the association. The Main Committee consists of the following: André Visser from Fabrinox, Andrea Basola from Conceptual Steel Engineering (also Architecture, Building and Construction (ABC) Sector Chairman), Bernard Maguire from Cronimet RSA, Bertus Griesel from Columbus Stainless, Bill Scurr from Sassda (for now anyway!), Charles Cammell from Macsteel VRN Stainless, Colin Wilson from Euro Steel, Derek McMahon from MacBrothers Catering Equipment (also Consumerware, Hospitality and Catering (CHC) Sector Chairman), Gary Crawford from Styria (also Fabsec Chairman), Graham Whitty from Energy Engineered Products (also Import Sector Chairman), Jason Naudé from Rimex Metals SA, Mike Campbell from NDE Stainless, Paul McNally from Lasercore, Paul Miot from Stalcor, and Tom Rice (also Welding Sector Chairman).

Linked to the challenging circumstances facing the industry, as well as the imminent appointment of a new executive director, a decision has been made that Bernard Maguire should retain the Sassda chairmanship, despite having served two terms in this role, to ensure consistency and continuity. All Main Committee members were in agreement with this decision.

Many local stainless steel industry participants face a tough time ahead. The recent strike by the National Union of Metalworkers of South Africa (Numsa) put a further dent in the economy. The increase of violence by unions is worrying, as is their desire to fight a political battle on an economic front. This is particularly concerning as it does not bode well for business going forward. Although Seifsa, the majority body representing employers, has settled with Numsa and the strike is technically over, Neasa, which represents many of the smaller employers, does not agree with the terms agreed to and believes that a 10% wage increase over the next three years will bankrupt many of their members. It is still to be seen if the government will extend the agreement to the industry as a whole, but this is expected, as is it expected that Neasa will challenge this.

2 THIRD QuaRTeR, 2014


These wage hikes, as well as other factors such as rising energy costs, make the economic trading situation for many members an inhospitable environment at the moment. Clearly, Sassda is not immune from the challenges facing the industry and will have to review and, where necessary, adapt to these challenges.

At the time of writing this Perspective, apparent consumption figures to end-June 2014, indicate (at first sight) a similar year to 2013, which was a 5.8% decline from 2012. However, scratching through the detail shows a mix of good and bad regarding demand in different market sectors. The lack of major projects (in South Africa in particular) and on-going doubts regarding the government’s infrastructure investment plans, certainly remain a major concern.

Much of Sassda’s focus over the next few months will be directed to the 2014 Stainless Steel Awards (and 50th Anniversary). Entries for the Awards will have closed by the time you read this. The focus in this edition of the Stainless Steel magazine is on the 10 Awards sponsors, see page 36, without their support these Awards would not be possible.

On a personal note, I would like to express my thanks to the Sassda staff and consultants that I have worked with, for their support. Similar thanks to members of the Main Committee and Board. Of particular note in this regard would be the pleasure of working with Bernard Maguire, who has been the Sassda Chairman for my entire tenure. Thanks also to the many members that I have had the pleasure of dealing with.

I was first exposed to the stainless steel industry as a metallurgy student in the mid 1970s at Wits, doing both my 4th year project and MSc degree on stainless steel subjects (the latter being sponsored by Middelburg Steel & Alloys) and it is fitting that I finish my career in the same industry.

Best wishes!

Bill ScurrExecutive Director, Sassda

Driftwood HorsesThese majestic horses galloping through the sea may look real but are in fact made of hundreds of pieces of driftwood salvaged from the shore.

The life-size sculptures are the work of Birmingham-based master craftsman James Doran-Webb who spent a painstaking six months assembling them as part of celebrations to mark Chinese New Year in Singapore. Each of the three sculptures stands at around 1.83 metres tall, or 16 hands as horse lovers might say, and is made from roughly 400 pieces of driftwood of varying sizes built around a stainless steel skeleton.

Although the stainless steel is hidden beneath the layers of driftwood, it is the ideal material for the support structure of the horses. The stainless steel frame can withstand the weight of the driftwood construction: each horse weighs about half a ton and can take the weight of five people.

The stainless steel also ensures the longevity of the sculptures, little maintenance or restoration is required regardless of where the sculptures are situated. Stainless steel was chosen to complement the wood’s longevity, which is about 50 years old, and according to the craftsman it is ideal to work with. He says: “It is an oily wood so it withstands weather and it is very tensile - it’s a dream to work with.”

Doran-Webb made all three with moveable limbs and neck so they can be arranged into lifelike poses, as this stunning photograph shows. Doran-Webb comes from Birmingham but has been living in Cebu City in the Philippines for 26 years where he runs a workshop. The wood he uses in his sculptures has been salvaged from beaches and rivers around Cebu. For every kilo of wood salvaged, he plants a seedling at one of several sites around the city.

Sassda appoints new executive directorJohn Tarboton, Sassda’s technical, fabrication and welding consultant, has been appointed as executive director of Sassda as of 1 September 2014.

Sassda would like to congratulate John on his appointment and wish him well for his tenure running the daily operations at Sassda.

John has spent his working life in the stainless steel industry. During his employment at Columbus Stainless, John was responsible for many major achievements in the development of 3CR12 and CROMANITE, as well as in the tank container industry.

John brings with him a keen understanding of technical issues and the marketing of stainless steel. His experience in stainless steel ensures he has a clear understanding of the challenges and opportunities in the industry as well as a love and enthusiasm for the material. “Stainless steels must be one of man’s greatest inventions, in terms of a product that is so versatile, cost effective, durable, beautiful, abundant and recyclable,” says John.

John will now take over from the foundations re-established by Bill Scurr with a renewed focus of building a strategy for Sassda going forward.

case study:FiNiShES & SurFaCES

The Walt Disney Concert Hall was designed by Frank Gehry and is one of the most iconic uses of stainless steel in architecture. The exterior stainless steel cladding was given a matte finish, the Founders’ Room and Children’s amphitheatre were designed with highly polished mirror-like panels.

The reflective qualities of the surface were amplified by the concave sections of the Founders Room walls. Some residents of the neighbouring condominiums suffered glare caused by sunlight that was reflected off these surfaces and concentrated in a manner similar to a parabolic mirror. The resulting heat made some rooms of nearby condominiums unbearably warm and caused the air-conditioning costs of these residents to skyrocket and also created hot spots on adjacent sidewalks of as much as 60°C. To solve the problem a computer analysis of the building’s surfaces identified the offending panels. In 2005 these were dulled by lightly sanding the panels to eliminate unwanted glare.

Stainless steel is ideally suited to building applications. It is readily formable and weldable. Standard mill finishes and

mechanically and chemically treated surface finishes result in a wide range of possible surfaces.

Mill finishesMill finishes, whether hot or cold rolled,

are the basic supply condition for all stainless steel flat products. They are used for building components but are also the basis for finishing processes that alter the surface to meet more demanding architectural requirements.

Four particular surface designations are important for architectural and building applications. These are: No. 1, No. 2D, No. 2B and Bright Annealed.

To maximise resistance to corrosion in the as-supplied condition, mill finish surfaces are acid cleaned (pickled) to remove scale formed during hot rolling and annealing.

No. 1 - Hot rolled and annealed, and with the mill scale removed, this surface condition is classified as a No. 1 finish. This surface, which is found on thicker sheets and plate, is slightly coarse with very low reflectivity. It is primarily used for non-decorative purposes where the visual appearance is less relevant, for example, in unexposed support systems, and structural applications.

No. 2D - This is a more refined surface than No. 1 and is achieved by cold rolling, heat treating and pickling. The low reflective matt surface appearance is suitable for industrial and engineering needs but, architecturally, is suitable for less critical aesthetic applications.

No. 2B - This is produced as No. 2D, but a final light rolling using polished rolls gives the surface a smooth, reflective, grey sheen. This is the most widely used finish and forms the basis for most polished and brushed finishes.

Bright Annealed - By bright annealing under oxygen-free atmospheric conditions following cold rolling using polished rolls, a highly reflective finish is obtained. This ultra-smooth surface is less likely to harbour contaminants or moisture than any other mill finish, and it is easy to clean.

Mechanically Polished & BrushedThe number of additional finishing

processes can be minimised by selecting, as the starting point, the closest mill finish to the desired end result.

Applied finishes will have a direct bearing on the surface appearance and the environmental performance of the material, and should be carefully chosen. Mechanically polished and brushed finishes involve the use of abrasive materials that effectively cut the surface of the steel to some degree.

Mechanically applied finishes may involve wet (oil faced emery) or dry (grit faced belts or fibre brushes) which provide a high lustre, low roughness, and silk sheen finish respectively. Wet finishes are smoother and may be more consistent from batch to batch than their dry counterparts.

No. 6 - This surface is achieved by polishing belts or brushes. It is unidirectional, nonreflective, and suitable for internal applications.

No. 7 - This smooth reflective surface makes it particularly suitable for most architectural applications, especially exteriors where atmospheric performance is critical. The finish is obtained by the use of finer grit belts or brushes which give a clean cut finish with a roughness of Ra = 0.5 microns maximum.

No. 8 - A highly reflective ultra-smooth mirror finish, which is achieved by polishing and buffing with soft cloth mops and special polishing compounds.

Patterned FinishesProprietary pattern-rolled finishes

are achieved by pressing or rolling with patterned rolls, which can effectively stiffen the sheet permitting thinner gauge cladding and a subsequent possible cost saving and overall weight reduction. They are particularly suitable for large flat areas such as cladding, where visual surface optical distortions known as ‘oil canning’ are considerably reduced.

There are two main types of rolled pattern: 1-sided pattern, where the reverse side is plain – classified as 2M according to EN standards; and 2-sided pattern where the pattern is imprinted through to the reverse side

– classified as 2W according to EN standards. In areas of high public usage such

as building entrances, lift cages and airport terminals, where surfaces are susceptible to accidental knocks and scratches, patterned surfaces are less likely to show damage.

Ring polishing is a very popular patterned finish.

Bead Blasted FinishesBead blasting provides uniform,

nondirectional, low-reflection surfaces that contrast well, visually, with highly polished finishes. Materials used for blasting include stainless steel particles, ceramic beads, aluminium oxide, shredded nut shells, and glass, each of which add to the variety of surface finishes available. On no account should conventional iron or carbon steel shot be used, as this will severely contaminate the surface of the stainless steel, while sand can contain ferrous materials that may contaminate the surface and is not generally recommended for use on stainless steel.

The surface of austenitic grades of stainless steel will work-harden during the blasting process. The process, however, can induce or relieve stress within the sheet or manufactured component. In some cases blasting on both sides may be necessary to equalise the stresses.

Electro-Polished FinishesThis electro-chemical process is

suited to both sheet and intricately shaped components. The process is used to improve the surface of the material by removing the ‘peaks and troughs’ of the irregular surface to leave a smoother surface and an enhanced reflectivity. The degree of smoothness and reflectivity that results from this process, will depend upon the roughness of the initial material and it should be noted that it may not produce the mirror reflectivity achieved by mechanical polishing processes. Non-metallic surface inclusions can be removed by this process.

Improved corrosion resistance results from the smoother surface, which is also less susceptible to harbouring of contaminants and is also easier to clean and maintain.

Stainless Steelfinishes, surfaces and structures

All stainless steel finishes start with finessing a basic mill finish to create amazing results, such as HIGHLY REFLECTIVE surfaces, mesh, weaves,

colours and other innovative surfaces and structures



case studyFiNiShES

Coloured FinishesElectrolytically Coloured

Finishes - The inert chromium oxide layer at the surface of stainless steel provides the corrosion resistant properties of the material and, if damaged, is self repairing in the presence of oxygen. The layer can also be given colour by an chemical process which is then hardened by an electrolytic process.

Austenitic stainless steel is particularly suited to this process. Time dependent, during immersion of the steel in the acid solution, the surface film is built-up and through the physical effect of light interference, intense colour effects are produced. The specific range of colour that the film passes through is: bronze, gold, red, purple, blue and green, corresponding to an increase in the film thickness from 0.02 microns to 0.36 microns.

The initial chromium oxide layer, being colourless, is not susceptible to bleaching by ultraviolet light, and, as the colouring process does not involve pigments, fabrication can be carried out after treatment without film cracking. In bending, for example, the inert film will stretch at the bend although thinning will marginally reduce the depth of colour.

As the inert surface film is transparent, the substrate will influence the final appearance, ie a dull finish will result in a dull colour, and a mirror polish will result in a highly reflective coloured appearance.

This process results in a permanent colour that requires no restoration, (unlike painted surfaces) therefore care should be taken to ensure that the surface is not damaged as these cannot be readily repaired. Stainless steel coloured by this process cannot be welded without destroying the surface.

Stainless steel can also be coloured black using a solution involving sodium dichromate. Care must be exercised when cleaning coloured stainless steel. Wire wool and other abrasives, which will permanently damage the surface, should not be used and chloride cleaning agents should be avoided.

Electrolytically Coloured and Patterned Finishes - By texturing the stainless steel prior to applying chemical colour, many attractive designs can be created. These designs can be further enhanced by lightly grinding off the pattern ‘high points’ to expose the stainless self-colour, leaving the applied colour in the recesses and less susceptible to damage.

Organic Coatings - Developed originally for roofing and cladding applications, organic coatings are available on flat rolled stainless steel. Specialist pre-treatment

and coating processes provide the basis for adherence and stable service life for the coating.

Organic coated stainless steel for roof sheeting can be seam welded by a process that involves the inclusion of stainless steel powder at the material to be joined.

Specialist Decorative Finishes The processes include: photoresist,

acid etched, shot blasted, coloured, patterned, ground and polished. An infinite number of surface patterns and effects can be achieved. Masking is used to protect the surface during, for example, grinding or shot blasting. Some patterns are illustrated above to demonstrate the capabilities of the specialist finisher.

Silk screen and photoresist processes have been developed to transfer any pattern on to stainless steel, the surface is then acid etched to reveal the pattern. Acid etching is a process that removes a small amount of surface material.

Etched surfaces have a dull and slightly coarse appearance which contrast well with polished or satin finished un-etched surfaces. Electro-chemical colour can be given to etched surfaces before or after etching.

3D Surface Structures Three dimensional surface structures

can be created in stainless steel using semi-finished products made mainly from fine sheet or wire. These structures are formed by using techniques such as embossing, punching, cutting, profiling and weaving, carried out on computer-controlled machines to generate a wide variety of patterns and structures. And by combining different techniques, new areas of application are opened up.

A bionic technology, which has become known as vault structuring, creates honeycomb-shaped three-dimensional buckling, offset in multiple dimensions. This new method is particularly gentle on the material and the surfaces. High rigidity combined with low weight is a significant advantage, along with a reduction in glare due to the diffuse light-scattering effect of the surface.

Embossed SheetIndustrially manufactured embossed

sheet has a regular, raised geometric pattern with either a smooth, brushed, matt or shiny surface. It is made by taking a stainless steel panel or sheet from the coil and pressing it between two moulds or matrices. The thickness of the sheet remains unchanged. The process


of impressing the design gives rise to two different sides, one with a raised pattern and one with indentations: the side with the raised pattern is usually the one displayed.

The forces involved during the process of impressing the design would normally lead to the sheet deforming slightly. A range of embossed patterns, achieved by employing different tools, is available. There are flat, round, semi-round and square indentations, diamonds or pyramids, plus many special forms. For individual commissions, advances in CNC controls are exploited to produce custom random designs.

Perforated SheetPunching is the most cost-effective

way of producing perforated sheet. In industrial manufacturing either individual metal sheets are processed or strips straight from the coil. The press punches individual holes or rows of holes in the sheets of stainless steel, with the punching motion always being in one direction, and perpendicular to the plane of the sheet. The energy introduced during perforation leads to tension in the sheet that has to be eliminated afterwards in a levelling machine.

The type of perforated sheet is determined by the thickness of the material, the shape, dimension and the arrangement of the holes, the width of material between the holes and the percentage of open area. The perforations – round, square, slotted, or one of many different special or decorative styles – can be applied in straight, diagonal or offset lines. Perforated sheet is suitable for a wide range of applications, for example in stand design and interiors, on facades, as solar-shading panels or balustrades and balcony parapets. The diameter of the individual perforation should not be less than the thickness of the sheet.

Profiled SheetLinear profiling is achieved by running

stainless steel sheets direct from the coil over forming rollers, sometimes as many as 20 rollers in succession. At each station the sheet is bent a little further, until the desired profile is reached. Then the material is cut into sections. This process is suitable for cost-effective manufacturing of large quantities, however, the choice of profile styles is limited.

There is greater design scope in horizontal profiling of sheet. Individual panels, rarely whole coils, are drawn over a die, while another tool presses from above. By controlling the feed, irregular-shaped profiles can also be manufactured.

Combined TechniquesRaised perforations are holes with

raised, cone-like edges. When bent or ribbed, stainless steel sheet perforated in this way gains additional stability. Often raised perforations are used for anti-slip treads, but also as a robust solution for sunscreens or façade cladding.

Expanded MeshExpanded metal mesh is a semi-

finished product with diamond-shaped openings that are formed by cutting and at the same time stretching stainless steel panels or strips. The size of the mesh openings is determined by the length of the parallel cuts made across the area of the sheet.

Unlike perforations, this involves no loss of material, as the incisions are simply deformed through the stretching process. After stretching the expanded mesh can be rolled flat to regain its original material strength. Mesh styles include diamond, square and hexagonal shapes, and also special shapes. Depending on

mesh length and width, web width and material thickness, a range of visual effects can be achieved, with varying degrees of transparency.

GratingGrating is a grid made up of bar or strip

in one direction slotted across supporting bar or strip in the other direction. The longitudinal and transversal elements are either pressed or electrically welded together. The resulting regular pattern is available in a range of grid spacings. Even variable spacing is now possible thanks to CNC processes.

Grating uses little material (around 80% of the surface area is open) yet it has very good load-bearing performance. If profiled bars are used, special surface properties, such as an anti-slip finish, can be achieved. Generally the edges around the grating are finished with flat-steel or angle profiles, to give stability to the grid structure. With changing viewing angles and viewing points, the visual impression of grating alters from fine and transparent through to opaque. By setting the bars at an angle, the grating can be used for solar shading or to deflect light.

Woven MetalStainless steel in the form of cables,

cords, round or flat wires can be woven, like textiles, to create a weave structure. Special weaving ‘looms’ are used in which the cross or ‘weft’ strands are interlaced through the length wise ‘warp’ in a range of weave patterns; the resulting woven metal is available in any length. Depending on whether rigid metal wire is used, or softer, woven cord, it is possible to create structures that are flexible in one or two directions, or very stiff structures, such as woven wire mesh.- Courtesy of Euro Inox. www.euro-inox.org

Stainless steel woven mesh sun screen The Sanral head office in Tshwane

Photo courtesy of GKD Buismet

How you finish matters.“A lot of people don’t realise

stainless steel’s scope of application as a facade,” says Jason Naudé of Rimex Metals. In South Africa, despite its versatility, stainless steel isn’t the first product that springs to mind when people consider exterior cladding.

Its use is a huge construction trend in Europe and the USA, however, because it offers many advantages that more traditional cladding does not.

It is extremely low maintenance - it won’t crack, shatter, or tarnish if selected and installed correctly. A building that’s been plastered and painted will need periodic touching up and a complete refinish every few years, whereas stainless steel retains its original lustre for decades. The entrance to London’s world-famous Savoy Hotel, for example, was finished in stainless steel, and its reflective finish shines as brightly today as it did when it was installed 70 years ago.

But these considerations are technical. From the client’s perspective, the appeal of stainless steel as a facade is that it offers a unique visual impact that cannot be replicated with any other material. The first image that springs to mind is one of brilliant mirror sheen, but that barely scratches the surface of what can be achieved. Properly prepared, stainless steel claddings can glow with soft colours and understated sophistication that is, for want of a better word, beautiful.

And it is in this preparation that Rimex Metals excels. The company has been manufacturing specially coloured and textured stainless steels for two decades, and has been involved in some of the most iconic projects South Africa has seen - their work for the interior facade of the OR Tambo International Airport, for example, involved the preparation of more than 5 000m2 of stainless steel.

That’s only one of many successful projects Rimex has undertaken. Because of the nature of the sector within which they operate, most of their work is both high profile and highly visible. They prepared and textured stainless steel for interior finishes and external facades of sites like Vodaworld, Carnival City, Gateway, Menlyn Park, and a slew of upmarket casinos.

“We’ve built good relationships with a lot of the big architectural firms,” says Naudé. “We pride ourselves on being the industry leaders in

Rimex: Case studies


case study:FiNiShES & SurFaCES

coming up with unique and specific finishes for this type of application. It’s a niche market, and we’ve become very good at servicing it.”

But Rimex is not limited to producing standard finishes. “Often on large projects, the client has a specific vision for what they want. Sometimes we might have a standard product that will fit the profile, but a lot of the time we will make custom products specifically for those projects.”

In these situations, Rimex will work with the client, experimenting and creating test samples, until just the right shade or texture is discovered. Once the desired look is achieved, consistency of replication isn’t a problem.

One of their more recent projects was for the prestigious Hyatt Regency Hotel in Rosebank. The owners had engaged LLP Design to work on the building’s interior and aspects of its exterior, and they were keen to use some of Rimex’s product.

“Rimex had a strong role in our project because of their special finishes,” says Nick Human, Managing Director of LLP Design. “It’s not something you see a lot, so we felt it was an important feature of what we were doing, and we planned for it from the outset.”

LLP chose to use pieces of stainless steel to create a singular look for the hotel’s entrance, originally bare face brick. “We wanted to add a subtle decoration to it to emphasise the arrival, so we built a design using strips of

Rimex’s product, and it’s worked very well.” Rimex provided them with a satin

bronze stainless steel, which LLP chose for its aesthetic quality. The look is muted, yet extremely effective - although the material is not polished to a mirror shine, its satin finish is enough to reflect the ambient light of street lamps and passing cars.

“We chose the product for what it does. It was quite an austere face brick wall, but that material has brought it to life, and given it movement.”

Rimex’s steel features prominently in the hotel’s interior, where a shinier mirror finish has been used. Human says that a regular polished stainless steel would have been too cold, but the colours Rimex provided allowed them to express a more subtle design narrative throughout, in warmer bronze and copper tones.

In the end, Rimex prepared around 120m2 of stainless steel sheet for LLP Design’s Hyatt Regency project - perhaps not the largest job they’ve undertaken, but it received the same standard of service and attention to detail as the company puts into all of its work.

Rimex is not content to simply churn out the same designs over and over. They continue to invest in equipment to broaden the palette of colours and textures they are able to offer, and recently acquired two new polishing machines that will add additional brilliance and sheen to the stainless steel they produce.

High sheen The stainless steel cladding at the Hyatt Regency Hotel in Rosebank, Johannesburg

CUTTING, BENDING & ROLLINGTO YOUR SPECIFICATIONS!

company profileMaCSTEEl vrN

Macsteel VRN has an array of top equipment for cutting, bending and forming

Africa’s top stockist of stainless steel, high strength steel and aluminium, VRN is the number one LOCAL SUPPLIER of components kits and cut to order

products for any project big or small


its probably from Macsteel VRNIf you’ve sourced stainless

A bold claim. But one that may not be very far from the truth. Through a line of succession that begins with Sassda founding members R Jackson & Co, which later became Jackson’s Metals, continuing on to the acquisitions of VRN (who by then owned Jackson’s) and

later Fagersta (also a founding member of Sassda), Macsteel has technically been involved since it all began. Since then Macsteel VRN has become the second largest of the ten business units that comprise the Macsteel group, which in turn is one of the largest private companies in South Africa. It boasts a steel distribution network that is unrivalled in Africa and products and services that are utilised in most large capital projects in sub-Saharan Africa and the continent at large. The company is a market leader in supplying and processing carbon plate, stainless steel and aluminium products.

It is not just a vast geographical footprint and the considerable volumes of products it moves that make Macsteel VRN such an industry powerhouse. These logistical advantages work in conjunction with an ability to provide cost effective solutions to clients in just about any industry. These range from giants such as mining, agriculture and construction all the way through to the more niche fields of designer goods and fine arts. Macsteel VRN Stainless Executive Charles Cammell points out another major advantage the business enjoys: “Being part of the Macsteel group allows VRN to leverage strong cost advantages, access to capital and a market position in both sub-Saharan Africa as well as towns and rural areas in South Africa where VRN does not have its own operation.”

Macsteel VRN consists of 17 branches that span and service every corner of the nation. Each individual branch is SABS ISO 9001 certified. The primary warehousing facilities for the branch network are located in Roodekop, Gauteng. In the words of Cammell: “This allows us to focus on targeted stockholding while Johannesburg functions as the main hub.” He went on to say: “Our ultimate goal as a company is to provide the best possible value added service and material solutions to our clients by optimising our product range centrally and then value adding at our various branches.” This policy allows VRN to produce and stockpile materials and products required by any industry in close proximity to its important hubs, a decisive competitive advantage.


To service the mining industry there are branches located in Rustenburg, Witbank, Welkom, Steelpoort, Phalaborwa and Klerksdorp that all specialise in products such as quench and tempered steel and value added steel products. For the marine applications, transport and consumer goods industries there are the Cape Town and Durban branches with the former specialising in products such as cut aluminium for tankers and cut stainless steel table tops.

The capital goods industry is covered by VRN Reef in Johannesburg, the primary warehousing point for the carbon steel, and the Richards Bay branch. Primarily focused on the transport and engineering industries are the PE branch, which is situated close to industries such as ore wagon manufacturing, the Pretoria branch and finally VRN Stainless in Johannesburg. This unit specialises in stainless steel and aluminium products and operates specialised world-class processing equipment including plasma, high-definition plasma and laser cutting services.

Along with being Africa’s top stockists of stainless steel, high strength steels and aluminium, VRN is also the number one local supplier of component kits and cut to order products for any project big or small. No other local manufacturer has the ability to supply such a wide range of kits, especially those of a

more complex nature. Final product fabrication however is not part of the VRN business model, the express purpose of this policy being to ensure that there is no chance for competition between Macsteel and its existing and potential customers. However project management of the manufacturing process will be provided should the customer so require.

According to Executive at the Reef Carbon operation, Jimmy Muir: “Because we can do everything in-house to provide clients with a ready to assemble kit, they avoid the expense of purchasing costly high-end equipment necessary to prepare the material for installation.”

He went on to further emphasise the point that VRN is a ‘full service’ enterprise: “We employ a lot of top people to ensure that we can meet all our customers’ needs. We have metallurgists, chemists, engineers and a variety of other specialists and professionals on our books. We are also capable of fulfilling all of our clients’ detail drawing requirements.”

Remaining at the forefront of innovations in steel technology is a priority for Macsteel VRN and a key factor in maintaining its pre-eminent market position. Aside from having leading staff and equipment in-house an important part of achieving this goal is the maintenance and creation of mutually beneficial relationships with local and

international production mills. Having strong commercial and technical relationships with an extensive network of local producers including Columbus Stainless, Hulamin and ARMSA as well as a plethora of best in class international manufacturers such as Viraj Profiles ltd., Citic Pacific and Dillinger certainly allows the company to provide a differentiated and customer-focussed raw material solution.

“Because of our wide variety of product offerings available globally Macsteel VRN is able to offer the ideal steel solution for any of our customers’ unique and varied needs” says Muir.

When asked what he thought was key in separating Macsteel VRN from its competitors he replied: “The VRN group’s diverse and state of the art metal processing equipment: from saw cutting all the way through to laser cutting, forming and rolling, coupled with our ability to provide such a wide range of logistics solutions are certainly important differentiating factors for us.”

With all of the above taken into account it is perhaps more a simple statement of fact than a boast to say: the chances are that whether you’re a prize winner in the upcoming Sassda awards, a fabricator, merchant or just about anyone else who has sourced stainless steel locally, you have more than likely sourced your stainless steel from Macsteel VRN.

Macsteel VRN can do anything inhouse to provide clients with a ready to assemble kit

company profileMaCSTEEl vrN

DW

FCOLLECTIVE / SA

S518209

®

Visit www.sassda.co.za for more information Tel +27 11 883 0119Fax +27 86 639 4277Email: [email protected]

It almost here, the Sassda 2014 Stainless Steel Awards Banquet is promising to be an event not to be missed. Here you will be able to celebrate the exceptional projects and award winners, and perhaps reacquaint yourself with some of the movers and shakers in business. So make sure you book your table, get your tickets and come and celebrate.

COME AND CELEBRATE

Book Your Places Today!Date: 06 November 2014

Venue: The Indaba Hotel, FourwaysTime: 18h00 for 18h30

Call (011) 883 0119 or email your

booking requests to [email protected]

before 15th October 2014

Cost: R500 per person

On 1 July 2014, 220 000 members of Numsa embarked on one of the largest strikes South Africa has seen in years.

Five months of industrial action in the platinum sector had already pushed the local economy into contraction, so the timing could not have been worse.

Many saw it coming, and tried to avert it. The last wage agreement struck in 2011 was due to expire, and in the months leading up to the start of formal negotiations with union leaders, many employer associations - among them the Steel and Engineering Industries Federation of South Africa (Seifsa) - reached out in an attempt to communicate the vulnerable state of the economy and the need for cooperation between workers and employers if recovery was to be sustainable.

But with the union demanding almost double what employers could afford to pay, these negotiations didn’t get very far.

DemandsNumsa’s demands were extensive,

but the key issues were:● A single-year deal (ie new wage negotiations next year).● A 15% salary increase across the board.● The scrapping of the use of labour brokers.● A R1 000 housing allowance for all workers.● A ban on the implementation of the Employment Tax Incentive (aka “youth wage”).● At the last minute, Numsa raised the issue of Section 37, which they had previously said they would not challenge.

HardballThe period of Numsa’s industrial

action was marred by high levels of violence and vandalism. Those who suffered most were workers who weren’t necessarily displeased with conditions, and hadn’t elected to strike. In many cases, people’s homes were torched, and vehicles vandalised.

The negotiations themselves were slow to bear fruit. Early private negotiations between Numsa and Neasa fell apart, and relationships between employer organisations

suffered after Seifsa made a 10% salary increase offer, a figure that Neasa still maintains its members cannot afford.

ResolutionAfter four weeks of striking, vandalism,

approximately R6bn in direct industry losses, and a further R2.4bn in consumer losses, the parties around the table reached an agreement which everyone except Neasa and the Border Industries Employer Association (BIEA) signed on 29 July 2014.

The decisions reached on the key points were as follows:

Three year dealNumsa conceded this point, so

employer organisations won’t need to negotiate wages again until 2017. This benefits employers as it ensures a level of stability for the next three years and it also allows for longer labour cost forecasts.

Wages The actual increase depends on

current salary level. The lowest paid workers will receive a 10% increase, scaling to an 8% increase for top earners. These increases apply year on year. Since inflation is currently at about 6.6%, there’s a strong argument to be made that this is generous.

Labour BrokersThe practise of labour broking

isn’t going away, and its presence on the negotiation table is curious given that a large number of Numsa members are employed through labour brokers. Nevertheless, it was agreed that stronger action needed to be taken against brokers who don’t meet statutory requirements. In future, non-compliant brokers will become targets for prosecution by the Bargaining Council - and the same will apply to the employers who make use of them.

Housing allowanceThis issue was taken off the table. It’s

still going to be looked at, but it’s been handed to the Bargaining Council Management Committee (Manco), and doesn’t form part of the strike settlement agreement. If implemented, it will most likely take the form of a facility workers can use to draw against savings rather than a specific payout from employers.

Employment Tax IncentiveNumsa initially wanted all employers

to refuse to implement the so-called “youth wage”, because they feared it would threaten the jobs of older employees. However, this move is undeniably political, and could not be agreed on.

Section 37 The compulsion to bargain at a

company level was brought up at the last minute, severely hampering negotiations. Companies demanded that section 37 of the main agreement for the sector be tightened up.

This will be a blow to the efficacy of unions as they will have to wait three years until the national bargaining council sits again to raise any issues. It will also make it difficult for Numsa to make deals on future retrenchments and its members will not be allowed to down tools for three years.

Seifsa said while it remained committed to collective bargaining, section 37 had to be tightened up to prevent what it called double dipping, in terms of which a two-tier bargaining system is in place.

Although, Seifsa’s preferred wording of section 37 was not accepted by Numsa, the federation’s council was satisfied that a compromise wording reached would protect companies from two-tier bargaining.

AftermathIn principle, the strike is now resolved,

and Numsa’s members have returned to work. But industrial action of this duration, coming as it did on the heels of the turmoil in the platinum sector, cannot fail to have significant effects on the local economy.

At the time of writing, Neasa has still not accepted the agreement, maintaining its position that a 10% increase will bankrupt the employers it represents. It has advised its members to lock striking workers out until the issue can be resolved.

It is not clear exactly how many Neasa members have complied with the lockout since presumably the need to return to production is strong, and it is unknown if any have enforced it. However, Numsa have stated their intention to take Neasa to court over the issue. If the labour minister, Mildred Oliphant, decides to extend

14 RD QuaRTeR, 2014

The outlook for steel in the wake of the strike

“This is a strike, not a dinner party.” - Irvin Jim, general secretary of Numsa


focus onNuMSa STriKE

the agreement signed to include Neasa and the minority parties, Neasa will have to comply. However, Neasa has stated its intention to challenge the extension.

SqueezedWhere Neasa appears to be correct

is that many smaller companies may be destroyed by the effects of the strike, though perhaps not immediately. Four weeks of shutdown will inevitably have meant loss of income during the period, and quite likely loss of projects that were underway when the strike went into effect.

This will be as true for large companies as SMEs, but SMEs will be harder against the wall, because the overheads are not trivial, and their breathing room tends to be smaller. When viewed in the context of the losses that these businesses have been forced to sustain, the increased cost of labour may prove to be a problem that not even a reduction in staff numbers can solve.

It’s not just the labourAlthough in some cases larger

companies might have more flexibility, they are not appreciably better off, in part because their higher staff count means that the mandated wage increase translates to a much larger swell in cost. This might be sustainable

in isolation, but labour is only one component of running cost, and conditions in the market have not been favourable for some time.

Even before the strike began, the local economy was under extreme pressure from imports. Cost drivers like power and transport have been steadily increasing, and that trend has not changed. The problem is exacerbated by the fact that there simply isn’t as much work flowing through the system as there used to be.

International partnersThe effect of the international market

on the local economy cannot be ignored, and ripples were felt even before the strike began. Some suppliers, particularly in structural steel, acknowledged the loss of major contracts from overseas clients just as the sabre rattling began in June.

The larger danger is that international companies that have invested in South Africa as a production site may lose patience with us, and leave. A prime example is the vehicle manufacturing industry, which consumes 8% of South Africa’s steel output, and makes use of stainless steel in various car parts, including catalytic converters. Both BMW and GM were forced to first scale down and then halt production during the strike.

South Africa’s reputation for labour unrest means that the foreign investors we

attract tend to factor a certain amount of volatility into their plans, and aren’t quick to bolt when problems of this sort arise. But protracted striking of the kind we’ve seen cannot fail to have an effect on their outlook. Ford, for example, has stated that it is considering pulling out of South Africa. If international automotive manufacturers leave South Africa, a conservative estimate suggests more than 30 000 jobs will be lost.

Survival strategiesThe specific effect of the strike on the

stainless steel industry will be measured by how fast - and indeed if - individual businesses can return to profitable production. Stainless steel is often perceived as a luxury commodity, and spending on luxury is typically limited when the economy is squeezed. Costs are higher than they’ve ever been, and businesses will need to find ways to optimise if they are going to survive.

“In simple terms, industry has been dealt a body blow,” says one industry insider. “It will result in job losses. Where practical, and where possible, it will result in automation.”

“Labour is now 10% more expensive, so companies will need to force productivity, because our cost advantage is diminished, making it harder to be competitive. Most likely, we will see widespread restructuring.”

A striking worker wears a tyre around his neck as thousands of workers clad in red demonstrate on the first day of a nationwide strike Courtesy of the FT


Wage negotiations

begin. Numsa

demands 15%

increase across the

board.

21 May 2014

5 June 2014

Numsa’s illegal strike at Transnet in PE

turns violent as non-striking workers’

homes and vehicles are torched. Numsa

says national strike now inevitable.

With wage negotiations

deadlocked, Numsa calls on

220,000 of its members to strike

indefinitely from July 1.

27 June 2014

Numsa

The National Union of Metalworkers of South Africa (Numsa) is the largest trade union in South Africa and represents more than 330 000 workers in steel and related industries, although only 220 000 of those were directly involved in the strike. Led by Andrew Chirwa, the president, and Irvin Jim, the general secretary (pictured left), the organisation has a strong political agenda.

METAL WORKERS

STRIKE 2014

focus onNuMSa

The 2014 metal workers strike lasted a protracted period of almost 5 weeks, companies were all significantly hurt by the lack of production

and strikers once again turned violent showing a disturbing trend towards negotiating. Workers not interested in wreaking havoc, were systematically

threatened and intimidated, and the future looks even rougher for employee-employer relationships.

Neasa

The National Employers Association of South Africa (Neasa) has been representing employers at Bargaining Councils since 1996. It has a large number of members, most of whom fall into the category of Small to Medium Enterprises (SMEs). The combined economic clout of its members is thus smaller than Seifsa’s.


2 July 2014

5 000 union

members march on

the Johannesburg

offices of Seifsa to

deliver their demands.

Violence and looting

erupts.

Numsa and Neasa

meet privately over

the weekend, but

fail to find common

ground.

5 July 2014

10 July 2014

Seifsa tables

what it says

will be it’s final

offer: a three

year scaling

deal of 10%,

9.5%, and 9%.

The number of

strikers arrested

for perpetrating

violence now

stands at 111.

11 July 2014

14 July 2014

Numsa

rejects the

three year

deal and

threatens to

widen the

strike to other

industries.

Materials

shortages caused

by the strike now

impact the building

industy too.

16 July 2014

18 July 2014

Neasa and Seifsa fall out

over the proposed 10%

increase, which Neasa says

its members cannot afford

Numsa calls an end

to the strike.

28 July 2014

Companies conditionally

accept a government

proposal of a 3 year deal

with increases scaling

from 8-10%

22 July 2014

Seifsa

The Steel and Engineering Industries Federation of South Africa (Seifsa) has been in existence for more than 70 years, and represents some of the largest employers in the country. Pictured left is Seifsa chief executive Kaizer Nyatsumba.

Seifsa provides legal support for employer associations, and lobbies for legislation that improves the business environment in South Africa.

MEIBC

The Metals and Engineering Industries Bargaining Council is an organisation created under the Labour Relations Act that provides a forum for labour and employers to work together. With around 140 employees, it provides strong infrastructure within which bargaining and dispute resolution can take place.

Politics and Violence

On the surface it would appear that the core issues are salary and worker conditions, however, we’ve seen that it is in fact political. Some trade unions are political vehicles, in that the direct expression of their power is their ability to impact the economy. The most powerful trade union is the one that can do the most financial damage. Their links to the ruling political party become extremely significant. Numsa is vocally critical of the ANC, it ceased making financial contributions to them in January, and refused to endorse them in the May elections.

There was far more at stake for Numsa, then, than a simple wage increase. Their position was engineered to provide an opportunity for them to demonstrate their power, to prove that the rhetoric they had been broadcasting was not empty. Violence plays a major role in this: they know it is crucial to secure their power position and workers believe it is the only way to be heard. Unless government takes action, this type of intimidation is here to stay.

Welding and Fabsec activities:n Fabricator Capability Database developed and implemented. n Plan to include ‘light engineering’ fabricators.n Hosted Duplex Stainless Steel Seminar (pictured above).n Inroads with SIPs and designation programme and local fabrication growth.n Shop-floor fabrication and welding orientation course.n PER/SANS 347 workshops.n Young Welder of the Year competition.n Welding seminar with Damian Koteki (pictured right).n Specification Guide published.n The Stainless Steel magazine’s case studies and technical articles.n Engineer’s Technical Handbook.n Information Series is being revamped.


Bill Scurr, the executive director of the Southern Africa Stainless Steel Association (Sassda), retires from the

industry body in October this year. Under his guidance in the past three years, Sassda has been able to turn itself around from being a struggling industry body that was losing focus and the trust and support of its members, to an association body that has renewed vigour and direction.

“I would like to thank Bill for his time at Sassda,” says Sassda chairman Bernard Maguire. “Under his stewardship we have been able to steer Sassda back to becoming an industry body focused on supporting and adding true value to its members.”

Scurr’s no-nonsense approach and realistic assessment of the challenges and opportunities facing the association resulted in a back to basics strategy being implemented at Sassda called “The 5 Rs”.

The first priority was to Reinvigorate the sectors. Other priorities were to Refresh education and training; Reinforce the technical profile, which includes increasing the technical content of the Stainless Steel magazine as well as increasing the involvement with other technical institutions and associations; Rebalance government interaction; and Resurrect Sassda’s visibility.

The following are a selection of Sassda’s current and planned activities:

on firm groundSassda

The stainless steel association has re-established a SOLID FOUNDATION based on the requirements

outlined by the board in communication with its members

Architecture Building and Construction (ABC) activities:n Website - [email protected], to answer any consumer and architectural questions.n Stands at Building Centres and Home Ideas Centre.n Presentations to tertiary educational institutions.n Seminars for Architectural Associations.n Catherine Houska seminar.n Participation in the 7th Built Environment Conference.n Participation in XXV International Union of Architects Congress in August 2014. n Tertiary education awards (pictured above).


focus onSaSSDa DEvElOpMENTS

Consumerware, Hospitality and Catering (CHC) activities:n Radio initiative on 702/Cape Talk. n Launch of the All Things Bright and Beautiful website.n Participation in the Home Ideas Centre stand.n Homeware competitions (pictured above).n The Giggling Gourmet, Jenny Morris, being considered.n Defensive initiatives against imported finished product. (Such as pot testing, education buyers programme, anti-dumping investigation).n Relaunched Cross and Balls logo and campaign.

Training and Education:n Introduction to Stainless Steel Course for non-technical staff. n [email protected] launched - also see ABC activities (pictured above).n Fundamentals of Stainless Steel Course revamped.n Project support has been offered to the metallurgical and engineering departments, as well as the architectural departments of tertiary education institutions.n Manufacturing training initiatives.

Government interaction:n Regular interaction with the dti.n Presentation to the dti (pictured above).n Discussions regarding SIPs through the IDC.n Relationship with TLIU.n Contact with Customs & Excise.n Relationships with TIKZN and the WCPGR.n Relationships with Seifsa and the Manufacturing Circle (logos pictured below).

Other activities in the works:n Updating of the database and website.n 2014 Buyer’s Guide.n Import Levy collection and an Import focussed programme. n Specific HS code investigations.n Sub-Saharan Africa activities.

The activities that Sassda has embarked on are part of a sound foundation for the everyday running of the association, which will now need to pay close attention to the challenges facing the industry.

n African Trader magazine articles.n National Pavilions in Zambia, Angola and Mozambique.n Portuguese pamphlets published for Mozambican market.n 2014 Stainless Steel Awards (see logo right).n Sassda’s 50th Anniversary (see logo above) m Increased size of each Stainless Steel magazine. m Sassda’s Stainless Steel Awards dedicated to the 50th Anniversary.

NEWS50th anniversary


In the early 1970s, pollution from vehicle emissions became a political issue, and 1975 saw the first catalytic converters being

introduced in the USA. Decades later, this remarkable piece of technology would give birth to a massive South African industry that today generates up to R20bn annually, and employs thousands of people.

Setting the stageOn the map, it’s called Port Elizabeth,

but those who know it, could refer to it as Detroit. Like its American namesake, it is a vehicle production hub, home to most of the international car manufacturers that have chosen to set up assembly lines in South Africa, and a prodigious consumer of local steel.

But no car is 100% homegrown - for a range of reasons, some parts always have to be imported, a process that attracts considerable duties. Car builders must either find ways to source what they need inside the country, or take advantage of incentive programmes that government has put in place to stimulate local industry.

A balancing actThe government’s aim is to encourage

as much local manufacture as possible, initially through the Local Content Programme (LCP), and later through the Motor Industry Development Programme (MIDP). Under these schemes, the import duties on a whole car may more than double its street price, and the situation isn’t much better for component parts.

But there’s an intentional loophole: if you’re willing to build components here, using as much locally sourced material as possible, and export them to overseas markets, government will grant you rebates that you can use to offset your import duties, making it more affordable to bring in the parts you can’t make locally.

To get the most out of this system, then, you need to be exporting high value parts, which generate bigger rebates.

CataleptomaniaWhile most catalytic converters are built of more or less the same substances, those found on high end “green” SUVs tend to be significantly more expensive, as they contain a lot more precious metals. In the USA, this has resulted in a niche thievery industry.

Because SUVs typically have higher clearance, a thief can easily slide beneath them on a mechanic’s dolly, and cut the converter out with a cordless reciprocating saw. Allegedly, stolen high end converters can sell for up to R2 000. This in turn has birthed a cottage industry in “cat clamps”, a protective sleeve that deters cutting.

Catalyst to successThe history of SA cat cons

Great tubeCharles Cammell is one of the earlier

names in the catalytic converter industry. He was there when it began. In 1987, Cammell, then market development officer at MS&A sat in on a meeting with fischer Edelstahl Rohre and K Braun Engineering in Butterworth. They had a problem: the stainless steel exhausts they were using in locally built BMWs were failing - perhaps MS&A could help?

MS&A could, and a few months later sent half a ton of their free issue grade 409 to Germany, where fischer’s engineers could tinker with it. They were impressed.

“They told us they could make great tube out of our product,” recalls Cammell. “There was some discussion with K Braun

about a joint venture, but in the end fischer decided to set up a tube mill on their own, in Butterworth, manufacturing for supply to the exhaust industry.”

This was the first German stainless steel investment in the automotive industry, significant because it spoke to a level of confidence in what they felt was achievable.

Dirty airDuring that period, anti-pollution laws

were passed overseas that governed vehicle emissions, particularly in Europe. They required that new cars be fitted with a catalytic converter, a device which reduces the amount of toxins a fuel-burning engine spews out of its exhaust.

When fumes are pumped through it,


they react with a catalyst that breaks the gases down into less toxic substances. The catalyst used varies from manufacturer to manufacturer, but usually consists mostly of platinum, blended with palladium and rhodium.

In the canBecause precious metals are

expensive, a catalytic converter is not a part that anyone wants to replace regularly, so manufacturers need to be able to offer long warranties on them. And given where they’re mounted on a car, they needs casings that are resistant to high levels of heat, capable of taking a beating, and preferably good looking. A stainless steel “can”, therefore, is a perfect choice.

South Africa holds about 80% of the world’s reserves of platinum, and produces excellent stainless steel. That makes it a perfect place to build catalytic converters in volume. And since vehicle manufacturers were on the lookout for a high value export component to offset their import costs, the foreign legal requirement for converters did them a huge favour.

First across the lineWith a German company already

producing stainless steel exhaust tubes in Butterworth, it didn’t take long for them to figure out that they might as well also make catalytic converters. In fact, both BMW and Mercedes arrived at this conclusion at around the same time.

Their historic rivalry is a matter of common knowledge, so naturally the two began

a race to see who would be the first to mass produce catalytic converters in South Africa.

“It was a close thing,” recalls Cammell. “They were both working flat out, but in the end Mercedes got there just a few months ahead of BMW.”

Autocat, a company newly formed by the owner of K Braun, was the first plant to mass produce stainless steel catalytic converters in volume. They built them for Mercedes, under license to German exhaust manufacturer Eberspächer, who are still one of the leading exhaust system designers today.

FunThe early days of the industry were fast,

challenging, and exciting. “We were pioneering a new industry,” says Cammell. “Constantly having to think outside the box, and make plans. We’d be loading coils onto bread trucks to get them down to Precision Exhausts on a Friday, because they had to run on an Easter weekend to ship stuff to the USA on the Monday.

“We had steel that was flown from Johannesburg to London, taken to a factory, made into a flange, put back onto a plane, flown to Cape Town, put onto an exhaust system, assembled, and then flown back to the UK to stop a factory running out … it was great fun, I thought.”

Rapid volumePredictably, mass production of

catalytic converters exploded. The industry quickly grew to make up about half of the export components being built under government incentive schemes, and more than 50 different

manufacturing plants became involved in their production.

As production ramped up, catalytic converter manufacturers began to eat stainless steel at a phenomenal rate. They currently consume a massive 50 000 tons of the material every year, about 38% of South Africa’s total output. This makes the catalytic converter industry the single largest consumer of stainless steel in the country.

Fully 85% of the raw materials used are locally sourced - in fact, the only part of a catalytic converter that can’t be sourced in South Africa is the ceramic honeycomb that forms the internal structure (and gets coated in precious metals). The extrusion process by which these honeycombs are produced is so difficult and expensive that it makes more financial sense to utilise existing overseas facilities than to build one here.

Epic Success StoryThe catalytic converter industry has

seen a year-on-year compound growth that averages at 14%. It has managed to capture 15% of the global market for this product, despite the fact that industry experts estimate it is running at only 70% of its capacity.

From an administrative perspective, it has arguably been one of government’s greatest industrial success stories, because not only does it generate large scale business for local mineral producers, but it has also created thousands of jobs. It’s estimated that around 5 000 people are directly employed in catalytic converter plants, and as a result, a further 30 000 are employed in related industries.

50th anniversaryCaTalyTiC CONvErTErS



Companiesthat have stood the test of time

During the 50 years that Sassda has been around it has had a number of members, today it sits at more than 400.

However, there were only 26 when it all began: many didn’t last, more have come and gone somewhere in-between, while the majority that have joined along the way are still with us.

One thing that is not immediately apparent to anyone, however, is how many of the current members were also founders.

With all the changes of ownership, mergers and any other factors taken into account a rather select group of just four remain. They are Macsteel VRN, Schmolz + Bickenbach, Lockers Engineers and Afrox.

These companies ability to adapt to changes in the stainless industry, the country and the global economy at large has enabled each of them to become pivotal players in their respective fields. The evidence for this is found throughout their unique stories of growth and transformation.

However, we must also not forget the mill, which had the foresight to think of founding a stainless steel industry association, in its various incarnations from Southern Cross (SX) to Middleburg Steel and Alloys (MS&A) to Columbus Stainless.

Macsteel VRN Through a line of succession that

begins with Sassda founding members R Jackson & Co, which later became Jackson’s Metals, which was then acquired by VRN and later Fagersta (also a founding member of Sassda), Macsteel VRN has certainly stood the test of time. Over the years it has grown to become the second largest of the ten business units that comprise the Macsteel group: which in turn is one of the largest private companies in South Africa.

Consisting of 17 branches that span and service every corner of the nation, each one SABS ISO 9001 certified, VRN is able to boast a steel distribution network that is unrivalled in Africa. Its products and services

Sassda Members Pictured left is a list of the first Sassda members as published in the May 1965 Stainless Steel magazine.Highlighted are the companies that are still Sassda members today, 50 years later

are also utilised in most large capital projects in sub-Saharan Africa the rest of Africa. The primary warehousing facilities for the branch network are located in Roodekop, Gauteng.

VRN is the local market leader in supplying and processing stainless steel, carbon plate and aluminium products. Along with being Africa’s top stockists of stainless steel, high strength steels and aluminium they are also the number one local supplier of component kits and cut to order products.

This vast array of products and technical knowledge makes them a key service provider to important South African industries such as mining, marine applications, transport, consumer goods, capital goods and engineering to name just a few.

Schmolz + BickenbachSchmolz + Bickenbach can trace their

lineage in the Sassda family back to founder member Marathon Special Steel. Marathon became Thyssen Marathon Speciality Steels in 1981, and in 1995 again changed to Thyssen SA. In 2002 it became ThyssenKrupp Materials. Another renaming in 2005 saw it become Swiss Steel and finally Schmolz + Bickenbach South Africa in 2006.

That same year ThyssenKrupp VDM SA was acquired. As a group it is one of the world’s largest distributors and producers of special steel long products. These are primarily stainless, engineering, tool and special steel products: including engineered and roller bearing steel. Besides production it also specialises in sales and services.

Schmolz + Bickenbach South Africa retain stock to fulfil any and all special steel requirements, most of it coming from the group’s Western European and North American


operations. Its stainless steel meets the highest technical requirements such as extreme resistance against corrosive and mechanical stresses, great stability and loading-capacity resistance and extremely high temperature resistance. The excellent chemical and mechanical corrosion-resistance properties of these products make them perfect for industries such as automotive, construction, energy, medical, mechanical engineering and aerospace. Products range from Austenitic, Ferritic, Martensitic and duplex grade steels to heat and creep-resistant, non-magnetisable, valve and aerospace grade steels.

Lockers Engineers/JoestIn 2012 wholly South African owned

company Joest acquired the assets and technologies of Lockers Engineers, one of the original founding members of Sassda and in the process ensured their place on this select list. The sale comprised the product range of Lockers feeders and screens, SWECO, ROTEX, Vimac and thermal heating and cooling technologies.

Since then Joest has entered into a formal licencing agreement with SWECO, which was not previously in place. This acquisition offered Joest access to broader markets. It also afforded the prior Lockers brands a stable base with a significant amount of resources to work from and provided access to capital that was previously unavailable and needed to develop the business further.

Its primary products include round separators, gyratory motion sieves, fluid bed dryers, vibratory screens and feeders. It

50th anniversaryCOMpaNy DEvElOpMENTS

In print (Clockwise from left) an advert by Jackson Metals, today Macsteel VRN, featured in the 1989 magazine, Afrox’s advert from a 1984 magazine, Thyssen Marathon, now Schmolz + Bickenbach from a 1988 magazine, and the logo of Joest, previously Lockers, as it is today

services a wide variety of industries including mining, mineral processing, chemical, fertiliser, glass, foundries, pulp and paper, food and beverage, manufacturing and pharmaceutical. Both Lockers Engineers and Joest have always strived to be innovators and been involved in some ground-breaking projects in recent years.

In 2009 Lockers developed a range of heavy and medium brute force feeders ranging in throughput capacity up to 2500 tph. These rugged one piece constructions are designed for durability and lower operating costs. The design is flexible and can include screen decks of both single and multi-deck variety. For food applications contact parts are finished with stainless steel.

Even totally enclosed dust suppression systems are available. New technological developments on dryers have reduced their size whilst increasing overall operating efficiency. Joest also now has in-house capabilities for finite element analysis to evaluate the structural integrity of vibratory components and systems.

AfroxAfrican Oxygen Limited or Afrox is listed

company on the JSE Limited and Namibian Stock Exchanges and a member of the Linde Group. They are sub-Saharan Africa’s market leader in gases and welding products and services. These include welding electrodes, a full range of MIG wires and Flux core wires supported by a range of specially developed shielding gases. This is backed by a team of metallurgical and welding specialists that assists with welding procedure development,

process optimisation and process training if required. Their extensive range of products and services ensure that the gas giant plays a role in just about every major industry throughout the country and the region, stainless is no exception. Afrox has been supplying gas for welding to SASSDA members and been a SASSDA member themselves for as long as the organization has been around.

Welding stainless is not quite as straight forward a process as welding certain ‘simpler’ metals. Afrox undertakes a comprehensive process when it comes to Stainless that ensures the quality and strength of their welds. This includes preparation, pre-weld cleaning, weld area preparation, re-drying of electrodes prior to welding, the weld itself and a thorough post-weld cleaning for the finished product.

Afrox’s dedication to developing new technologies, including advanced welding techniques, has led to the development and manufacture of the products such as the AfroxPak Self Contained Self Rescuer, high purity shielding gases and most recently the revolutionary Smoothflo hybrid gas pressure regulators and LaserPro for cutting. Another key factor in the company’s growth has been the establishment of welding consumables and gas equipment manufacturing in South Africa.

“These four companies are Sassda’s longest and most enduring members, an accolade we hope we can bestow on them in another 50 years,” says Sassda executive director, Bill Scurr. However, Sassda also has many other members with illustrious histories.



The global tank container industry came into existence in the 1960s as a direct result of the need to reduce international

handling costs and increase efficiency and safety of intermodal transportation of goods such as foodstuffs and hazardous chemical products. Nearly 20 years later, in the highly charged political and economic climate of apartheid South Africa, a remarkable story played out in a developing nation at the bottom of the world that became the undisputed leader in an important global industry and then lost the title within a decade.

During the NP government’s rule, due to the strict laws and isolationist policies, there was no legitimate way for wealthy South Africans to expand their offshore portfolios. This coupled with a genuine need at the time for diversification in the manufacturing sector and the fact that Europe was no longer a cost-competitive place to produce tank containers, and the picture began to take shape.

Establishing the tank container industry in South Africa was both a logical and clever solution for these challenges for a number of reasons. The government and the private sector foresaw the advantages of tank container investment as a means to establish manufacturers of high-quality, high-specification products that were in compliance with international standards and would attract overseas investors. It was also an industry that would provide valuable growth in the skilled and semi-skilled employment sectors, increase ultimate beneficiation of raw materials including stainless steel and high-grade carbon steel generating valuable foreign-earned income for the country.

Essentially it was a legal means for South Africans to invest offshore and earn foreign income without the authorities losing control of the assets. As part of its strategy to increase exports the Department of Trade and Industry also introduced an Export Incentive Scheme in 1980. This scheme was replaced

by the simpler General Export Incentive Scheme or GEIS in 1990.

This unique combination of factors allowed the local industry to flourish. Established South African companies such as Consani Engineering, Welfit Oddy and Trencor added tank container design and manufacture to their business models. They soon found the competitive advantages of being the sole viable investment prospect for the nation’s richest citizens, GEIS and a weakening rand gave them almost everything they needed to begin taking on the global market. By the mid-1990s these companies, in particular Consani, had grown to rival the largest in the industry but now faced new challenges.

The withdrawal of GEIS in 1996 meant the country was once again at a disadvantage because of its distance from the northern hemisphere trade routes (as tank containers are essentially an investment into international trade) while the quality of sheet metal required for tank containers was considered to be not up to standards by local manufacturers, meaning most of the stainless steel used was still imported. However, in 1997 and 1998 a couple of important things happened that once again completely reshaped the local tank

container industry and ensured South African dominance in the global market.

In 1997 the new post-apartheid government relaxed exchange controls, allowing South Africans to invest up to R250 000 offshore. This created a vast array of new investment opportunities for wealthy South Africans. At first this seemed like another heavy blow to the future of the industry as 80% of production fed into the foreign investment market. Simultaneously however, tank container investors were permitted to retain foreign currency rental income, thus enabling this income to extend its rand-hedge character after receipt and outside of the exchange control net. This meant that even in this new foreign investment climate, tank containers remained the most lucrative and attractive way to invest overseas.

Along with the withdrawal of GEIS and the need to further localise the industry, the relaxing of exchange controls was also one of the major contributing factors in the decision to form the South African Tank Container Association (SATCA) in 1998. This was a key factor because it provided a platform for the industry to speak to the government with a united voice and put in place standards and a

Tank containers -a SA industrial rollercoaster ride


constitution to govern the local industry.The association immediately

recognised that to succeed it had to involve the entire value chain. By getting manufacturers, investors, brokers and everyone else with a stake in the industry working for common goals, SATCA gave the industry the focus it required. One of the first issues it tackled was how to reduce the reliance on imported materials. Although by 1996, the quality problems with producing the hand-inspected grade steel required had been solved, Columbus produced quality that was as good as or better than the imported material, there was much disinformation being put to the tank container purchasers. Columbus thus decided to do an extensive blind benchmarking on the three stainless steel suppliers to Welfit Oddy. This was done at Mintek in Randburg. The idea was to come up with the so-called “definitive statement” on the quality of stainless steel required for the tank container industry.

The results of these tests were presented by Don Maxwell at MariChem 97 in Cologne, Germany. They proved that the Columbus product was superior to its competitors in a number of ways and matched up in most others. There were no technical grounds for locally produced material not to

be used in the manufacture of tank containers.This was one of the major factors in

drastically reducing the amount of imported material from as much as 75% to around 20%, thus turning a serious threat into a decisive competitive advantage.

In 2002 South African companies were responsible for the production of more than 60% of the world’s tank containers, with Consani Engineering alone holding 40% of global market share. This period of pre-eminence would, however, prove to be short lived. The first decade of the 21st century saw China start to really flex its economic muscles. With the unmatchable subsidies provided by Beijing, access to the world’s latest technologies (allegedly obtained by government sponsored cyber-criminals) and one of the cheapest labour forces in the world, Chinese companies were able to wrest control of countless world industries and begin to build a global economic empire. Throw into the mix a strengthening rand, which at one point in late 2004 / early 2005 was at R5.60 to the dollar, and an inability to drive down factory costs and the recipe for disaster was complete.

In 1998, there were about 7 000 tank containers made each year in South Africa. However, after Krugersdorp Engineering,

Trencor and Consani Engineering stopped production, only Welfit Oddy remained, and at this stage it was producing 8 tanks a day (about 2 000 tanks per year). Today Welfit Oddy produces 29 tanks a day now (about 7 250 a year).

There were a couple of important factors that enabled the Port Elizabeth-based company to not only survive these harsh conditions but even report a 40% growth in 2005. In 2000 the family owned business founded by Yorkshire born brothers Welfit and John Holmes Oddy became part of the Burg (now Buhold) Industries Group. This provided easier access to important European markets right when it was most needed. The company also expanded its product range and increased its customer base, in the process creating 400 jobs. This enabled Welfit Oddy to obtain an impressive 20% to 25% of the global market share in the tank container industry, a statistic that stands to this day.

So, the ups and downs may finally have levelled out a bit. However, it is definitely fair to say that during the past 50 years of Sassda there have been few, if any, industries that have played as big a role in the growth of stainless steel in South Africa and made such an impact on the global market as this one has.

What is a tank containerA tank container is a stainless steel pressure vessel housed in a carbon steel 20 foot ISO container frame. They are manufactured in a wide range of capacities, from 10 000 to 40 000 litres. All tank containers undergo rigorous safety testing and have been proven to withstand substantial damage. They provide the global transportation industry with advantages when it comes to the shipping of products that would otherwise be in barrels. More than 70% of a tank container is stainless steel. The primary grade utilized in their production is grade 316L, in thicknesses that range from 3.0mm to 6.5mm. In addition a variety of other grades including duplex, 304 and 3CR12 are used in the assembly process. About 60% are used in transportation of non-hazardous chemicals and food stuffs. The remainder are used primarily in the transportation of hazardous chemical products.

1960 - Global stainless steel tank container market developed

1980 - Sa moves into tank container manufacturing

1980 - export Incentive Scheme launched

1986 - Welfit Oddy produces

1990 - General export Incentive

1990s - Consani becomes

1996 - GeIS withdrawn

1996 - exchange controls relaxed

1998 - Satca formed

2001 - 60% of global marketConsani holds 40%

2000s - China moves into tank

2005 - Trencor and Consani close shop in South africa

Only Welfit Oddy remains in business

2005 - Welfit Oddy grows 40% to

take 20-25% of the global market

(where it remains today)

largest global player

Scheme (GeIS) launched

its first tank

container manufacturing

50th anniversaryTaNK CONTaiNErS

to meet demand1998 - Columbus makes adjustments


prOFilE50th anniversary

John Cluett was born on 1 March 1938 in Gibraltar but home was Rio Tinto, Huelva, Spain where his father worked with the

Rio Tinto Company. He attended Stonyhurst College in England for his secondary education, followed by a three year brewing pupillage in UK and Denmark.

His first job as a brewer was with Simonds Farsons Cisk Brewery in Malta, starting in October 1960 as assistant and then second brewer. He left in 1968 to join Alfred Jorgensen Laboratory (AJL), Copenhagen, Denmark as brewing consultant from 1969 to 1973, and later from 1979 to 1981 working on projects in Denmark, India, USA, Canada, Spain, China – Hong Kong, and South Africa.

Over those 20 years, he brewed and managed breweries of varying sizes and complexity with copper and stainless steel brewhouse vessels; open fermenting vessels made from copper, wax lined wood, epoxy lined mild steel and stainless steel; and closed vessels made from epoxy-lined mild steel, aluminium and stainless steel. During the same period, he participated in brewery projects with annual production capacities ranging from 5 000 hLs to 4 000 000 hLs.

On arrival in South Africa in 1981 he took up the position as Design Manager for AJL, who had been appointed as designers for phase 1 of the new SAB Rosslyn Brewery in Pretoria. Following the commissioning of the first phase, the second phase started, making it the largest brewery in SAB, adding an additional 40% to the existing production capacity of the company. Once completed, it received the South African, Institution of Mechanical Engineers, Project and Systems Award in 1987.

In 1983 he joined SAB and took up a position at Central Office Engineering as Quality Assurance and Value Engineering Manager. The main focus of this role was to analyze extensive deterioration of plant in the brewhouse area, operating in a high temperature environment (50°C to 100 °C), and plant operating at lower temperatures (10°C to -3°C). The plant fabricated from stainless steel, manifested severe Stress Corrosion Cracking (SCC), and the large process vessels fabricated from epoxy lined mild steel vessel showed excessive deterioration of the epoxy lining and leaks from the ammonia cooling jackets.

Up close and personal with John Cluett

John Cluett

Given the large number of incidents of SCC on stainless steel plant and failures of the epoxy lining, a detailed study was carried out, applying Value Engineering (VE) and Life Cycle Costing (LCC) processes. Alternate designs, materials, fabrication procedures and maintenance practices were evaluated by a team of specialists from the company, Sassda, Middleburg Steel & Alloys, the University of the Witwatersrand, and others that added value to assessing and evaluating alternatives. Included in this team were fabricators of the equipment from South Africa and Europe.

The outcomes obtained from the process allowed for all corrosion problems to be resolved, as well as the substitution of epoxy lined mild steel vessels with stainless steel vessels. The VE and LCC studies confirmed, a) the benefits of new design codes and fabrication procedures, b) improvements of surface finishes assuring a higher level of hygiene, c) safer operational conditions and d) lowering the Total Cost of Ownership. Awareness of the need to prevent recurrence of incidents was carried out by training designers, as well as operational and maintence personnel. Ongoing tracking of incidents over the last 30 years has confirmed the benefits foreseen on the VE and LCC exercises.

Publication of findings and improvements was encouraged by the SAB Ltd Management as incidents were addressed and new equipment was installed at new and existing breweries. Many of these improvements were converted into Engineering Standards by SAB and in turn were used by suppliers who benefited from this process to the advantage of all future users.

When one looks at the combined research, development and improvements in the application of stainless steel, these Shared Learnings show real benefits in the Global Brewing Industry.

John continued his career with SAB Ltd as Chief Design Engineer: Brewing from 1985 to 1987 and as QA Manager of Rosslyn Brewery from 1994 to 1995. He was then transferred to SABMiller International as Plant Manager of the Maputo brewery at Cervejas de Mozambique from 1995 to 1997, returning to SAB Ltd and SABMiller Group Technical as Consultant on Capital Projects and Engineering, and retiring in 2003. To date he continues with his consulting service.

John was Visiting Adjunct Professor at the School of Chemical Engineering and Metallurgy, University of the Witwatersrand, Johannesburg, South Africa. (2010 – 2011).

How much stainless steel is used in the Global Brewing Industry?n 900 tons is needed for 1 million hectolitres per year per brewery.n About 1 800 million hectolitres of beer is produced globally per year (which means 1 620 000 tons of stainless steel.n Assuming a 5% increase in sales annually.Assuming above data: 81 000 tons of stainless steel is used in new breweries annually.- J Cluett presentation , November 2012

“I first became aware of Sassda and the work it was doing to assist in the development of the stainless steel

market in Southern Africa in 1986, when I worked alongside Colyn Butcher, Derek Engelbrecht, Ron Cochrane, Ian Falcon and Colin Wilson and also Tony Bagnall and Bill Scurr and their technical team to develop export markets for Middelburg Steel and Alloys (as it then was), in order to ensure that the Middelburg plant could remain loaded to optimal capacity. There were regular reports to the Executive Committee of MS&A’s Stainless Division during that time of the progress being made by Sassda and I was intrigued to learn how much more could be achieved by spreading the load of the development activities across the whole industry, rather than trying to do it all in-house from Middelburg. And there is no doubt that a very significant part of the expertise which went into that development work came from the industry users themselves. There was a sense of common purpose.

My connection with Sassda increased substantially in 1991, when Derek Engelbrecht opted to move on from MS&A at the time of its merger with the Columbus Joint Venture and I assumed responsibility for the domestic market, in addition to my continuing responsibilities in the export markets. I joined the Board of Sassda in 1991 and remained a Board Member until 2003.

Board meetings were often robust affairs, with strongly held views expressed by tough industry leaders, but the progress which Sassda made is testimony to the constructive approach taken by its leadership, as well as the strength of its successive Chairmen and of its Executive Directors. But it is worth noting the invaluable contributions which were made to the growth of Sassda by the leaders of MS&A, and subsequently Columbus, from (in my time), John Gomersall, Keith Luyt, Fred Boshoff and Dave Martin who have each kept the need to support the concept of a strong local development association high on their lists of priorities. For, although Sassda is a self-funding association, relying on the levies contributed from its members as well as the revenues earned from marketing its own services, the Middelburg operation has provided a central collection point for the levy, thus assuring Sassda of a continuous cash flow. Their support

does not end there – there has always been a recognition at senior management levels of the need to supplement the full time staff at Sassda with additional manpower from time to time and it is no exaggeration to say that at some point in their careers every member of the Sales and Marketing Team; the Market Development Team; and also the Technical Team in Middelburg has had occasion to join forces with the Sassda Team in the achievement of their goals. As I said above, there was a sense of common purpose.

Reaching its 50th Anniversary is a significant milestone for Sassda and one which I hope will be celebrated with Sassda’s well earned reputation for partying. Sassda is not the oldest association of its kind – that accolade belongs to the British Stainless Steel Association, which was founded (as the British Stainless Steel Fabricators’ Association) in 1948 and was followed in 1958 by ISER in

Germany, in 1959 by the JSSA in Japan and in 1961 by Centro Inox in Italy. But none of Sassda’s forebears faced the same daunting tasks of developing a fledgling market while also managing a fledgling mill. It was inspirational to see at first hand how the members of the many diverse types of industries, and often the many competitors, were able to come together and to work for a common purpose.

I have since then had the privilege of observing closely how the activities of Sassda are replicated by many similar organizations around the world, each of which is charged with the task of developing its own domestic market.

The logical next step was to provide a platform for the stainless steel development associations (SSDAs) around the world to come together on a regular basis to exchange the ideas which they have developed and to share their successes and their challenges.

... continued on page 28

prOFilE50th anniversary

Up close and personal with John Rowe


John RoweJohn was born in England and grew up and was educated in Central Africa, receiving a degree in law and economics from Rhodes University and a second degree in law from what was then the University of Rhodesia.

He qualified as, and practiced as, an attorney, before moving into a career in metals and minerals, which lead him ultimately into the stainless steel industry, where he has been for the past 30 years. He became Director of International Sales and Marketing at MS&A from 1991 to 2003. During that time he was also a member of the Executive Boards of Sassda and of the South Africa Iron and Steel Institute.

In 2003 he accepted an appointment within the ThyssenKrupp Group in Shanghai, becoming CEO from 2008 to 2012. He was then appointed Secretary General and member of the Executive Board of the International Stainless Steel Forum (ISSF), based in Brussels. The ISSF is a representative association, with 76 members from 26 countries, representing almost all of the world’s stainless steel producers.

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... continued from page 27 Such a platform has now been

provided on an annual basis by the International Stainless Steel Forum (ISSF), which invites the SSDAs to participate in its conferences and to present their development ideas. Having worked with several of the SSDAs over the years I am not at all surprised by the continuing flow of new ideas which emerges from these hard working teams, but I am, as ever, in awe of the seemingly limitless extent of their enthusiasm and their levels of skill, experience and creativity.

Just one example of such idea sharing is the Teco Pot, a low cost stainless steel pot which was designed in India to reduce the level of the cook’s exposure to the fumes from open fires in enclosed areas and to improve the efficiency of the energy source which is used to heat the pot. It was immediately apparent that such a pot could provide a similar solution to the food preparation problems experienced by a significant proportion of the populations in Africa and it is pleasing to note that Sassda has adopted this project and is investigating it within its own sphere of activities. At the same time Sassda has been an active contributor to the

group meetings, bringing its own developmental ideas to the attention of the rest of the stainless steel world. I hope that Bill Scurr’s successor as the executive director of Sassda will continue the long tradition of Sassda’s association with joint SSDA meetings.

The past decade has given rise to a new trend in the stainless steel industry. Whilst growth in demand has continued on its long term average growth path of 6 to 7% per annum, there have been very significant new investments which have resulted in an even stronger growth in supply. When one thinks back to the 1980s and 1990s, when it was still economically feasible to build a cold rolling mill with a capacity of 100 000 to 200 000 tons per year and when the economically viable volume of an integrated stainless steel mill was around 800 000 to one million tons, today it is commonplace for new investments to consider two or even three million ton sites and there is currently talk of the first four million ton site. The solution is to continue to push the outside of the envelope in market development – to create more and more uses for this enduring and infinitely adaptable material. And that underscores the value to our industry of

development associations. I am proud of my association with

Sassda and I am immensely happy to have the opportunity to continue to work with them in my current position.

Happy Anniversary, Sassda! I will raise a glass to toast the next 50 years in the certain expectation that they will be no less challenging than the first 50, but every bit as successful.

Finally, on a personal note, I have been informed that the 50th Anniversary celebrations will coincide with the retirement of my old friend and colleague, Bill Scurr, the current executive director of Sassda. The association between Bill and me goes back to 1986 and has been filled with many shared experiences in different parts of the world, at least some of which would be better off remaining submerged beneath the tides of time. He is an immensely capable man, blessed with extraordinary skills and experience, but also with the gift of being able to share his skills and experiences freely among those with a common interest. I will miss the help I have received from him over the years and the good times we have had together. I wish him a long and happy retirement.”

50th anniversaryprOFilE CONT...

Fabrinox celebrated its upcoming 21st birthday on 9 May 2014 at a stylish and enjoyable event at Rhebokskloof Wine

Estate outside Paarl. The event was attended by many of the company’s customers and suppliers. The company turns 21 on 1 September 2014.

Catching up with the CEO, Andre Visser, after an energetic performance by Emo Adams, it was clear that the company was initially much focussed on supplying stainless

steel equipment to the food and beverage industry. This is still part of the service and product offering, but the focus shifted to under-license manufacturing and components supply to the market locally and globally. The target market also expanded from strictly food and beverage to water treatment, agriculture and mining with various kinds of other niche markets mixed in between.

Visser explained that the markets opening on the African continent will be a key

part in the future growth of the company and also the industry. He mentioned that South African manufacturers can no longer afford to be seen as a base for low cost products and services. This is not sustainable and that the industry should differentiate itself by being an alternative with skills, superior service delivery and quick turn-around times. Quality manufacturing as part of a turn-key solution will be the key to the future in Africa according to Visser.

Fabrinoxcelebrates turning 21

company profileFabriNOx

Please direct your tube bending enquiries to [email protected]


Stainless steels have traditionally been specified in applications where the primary requirement is corrosion

resistance. However, since their invention over 100 years ago, stainless steels have also been recognised for other attributes such as durability, versatility, quality, sustainability, hygiene and aesthetic appeal. It is this combination of properties that has seen stainless steels become the material of choice in a wide variety of uses, from the utensils and kitchenware used to prepare food, in a range of applications in the transport industry, as process equipment in the food and beverage industry, for the manufacture of pharmaceutical products, in the medical field, through to very demanding applications in the chemical processing and power generation industries.

Widely accepted and being used to an increasing extent in architectural applications, stainless steels are now becoming more widely utilised in traditional structural applications, such utilisation often being driven by other features of stainless steel such as high strength, improved fire resistance properties and good impact resistance. Evidence of this trend can be seen with the introduction of stainless steels in structural design codes in South Africa, the United States, Australia and New Zealand, and Europe.

As a material group, stainless steels are made up of about 200 different primary grades with variants within individual grades adding to the mix.

However, for structural usage in South Africa, there are three groups of stainless steel grades that would cover the vast majority of applications. These are the utility ferritic stainless steels, the austenitic stainless steels and the duplex stainless steels.

Utility Ferritic Stainless SteelsThere are a number of utility ferritic

stainless steels, but perhaps the most well-known and specified grade is 3CR12. 3CR12 was invented by Columbus Stainless in 1977. This steel is now certifiable to ASTM A240, UNS types S41003, S40977 or S40975. It is a 12% chromium steel, with the full chemical composition shown in Table 1. It has an atmospheric corrosion resistance of 150 times that of carbon steel and 30 times that of the zinc coating of galvanised steel. Even though the corrosion rate is extremely low (<2um/yr), even in the most severe marine environments, it can form a brown patina. Thus, if aesthetics are important, consideration should be given to coating 3CR12 or to using one of the higher alloyed stainless steels, as detailed below. In marine applications, some light pitting of 3CR12 is also possible, but in the 20 year CSIR atmospheric exposure programme, the

maximum pit depth that was ever observed was 0.25mm. The conclusion from this programme was that, from a corrosion resistance point of view, 3CR12 is suitable for use in any atmospheric environment in South Africa. 3CR12 has a minimum 0.2% Proof Stress of 300MPa, a minimum elongation of 20%, as shown in Table 2, and is tough even after welding and at sub-zero temperatures, down to about -30°C.

Austenitic Stainless SteelsThere are two main grades of austenitic

stainless steels that are important for structural applications, namely AISI 304 and 316, and the choice is dependent on the corrosion resistance required. These two steels have a minimum 0.2% Proof Stress of 205MPa, as shown in Table 2, but they have outstanding ductility with a minimum elongation of 40%. They are also exceptionally tough, even when welded and remain tough, down to liquid nitrogen temperatures (-196°C) or lower.

STruCTural appliCaTiONStechnical review

by John Tarboton, Sassda

Table 1: Chemical Compositional Requirements (aSTM a240M-12a)

Grade %C %Mn %P %S %Si %Cr %Ni %Mo %N Other max max max max max3CR12 0.030 1.50 0.040 0.030 1.00 10.5-12.5 0.30-1.50 Ti: 4x(C+N) to 0.6304 0.07 2.00 0.045 0.030 0.75 17.5-19.5 8.0-10.5 0.10 316 0.08 2.00 0.045 0.030 0.75 16.0-18.0 10.0-14.0 2.00-3.00 0.10 2001 0.030 4.00-6.00 0.040 0.030 1.00 19.5-21.5 1.00-3.00 0.60 0.05-0.17 Cu: 1.00 max2101 0.040 4.00-6.00 0.040 0.030 1.00 21.0-22.0 1.35-1.70 0.10-0.80 0.20-0.25 Cu: 0.10-0.802304 0.030 2.50 0.040 0.030 1.00 21.5-24.5 3.0-5.5 0.05-0.60 0.05-0.20 Cu: 0.05-0.602205 0.030 2.00 0.030 0.020 1.00 22.0-23.0 4.5-6.5 3.0-3.5 0.14-0.20

AISI 304 stainless steel (UNS type S30400) is the most widely used stainless steel, commonly referred to as 18/8 or 18/10, both referring to the same nominal composition of 18% chromium and 8% nickel, as shown in Table 1. It retains its aesthetic appearance in most atmospheres, except those within 20km of the coastline or in severely polluted environments. If aesthetics are important in these environments, then 316 (UNS type S31600) should be specified. This grade is similar to 304, except that it has a 2% molybdenum addition. This molybdenum increases the pitting resistance and the steel is thus suitable for marine or severely polluted atmospheric environments.Duplex Stainless Steels

Duplex stainless steels are roughly half austenitic and half ferritic in their microstructures. They have a minimum 0.2% Proof Stress of at least double that of austenitic stainless steels, such as 304 or 316, while maintaining good ductility with a minimum elongation of 25%, as shown in Table 2. They are tough, even when welded and this toughness is retained down to at least -50°C.

There are three types of duplex stainless steels that are relevant to the structural industry. Firstly, there are the lean duplex stainless steels. “Lean” generally means those duplex stainless steels with low levels of molybdenum, with these steels being designed to maximise cost competitiveness compared to the traditional duplex grades. The lean duplex stainless steels are still able to achieve a corrosion resistance similar to 304, with grades such as 2001 (UNS type S32001). 2001 has a nominal composition of 20% chromium and 1% nickel.

Other lean duplex grades have corrosion resistance similar to 316 and thus are suitable for marine environments. LDX® 2101, invented by Outokumpu, (UNS type S32101) has a nominal composition of 21% chromium and 1% nickel, and is almost as corrosion resistant as 316. 2304 (UNS type S32304), also a lean duplex stainless steel, has a nominal composition of 23% chromium and 4% nickel. It has general corrosion resistance and pitting resistance that is even better than 316. Finally, 2205 (UNS32205) has a nominal composition of 22% chromium, 5% nickel and 3% molybdenum. It is a standard duplex stainless steel with very good general and pitting corrosion resistance. 2205 is suitable for even the most aggressive marine environment, except for seawater immersion applications.

Structural applications can take advantage of the high strength of duplex stainless steels and down-gauging becomes possible, depending on buckling and deflection constraints. In practice, this means that the cost of a structure made from duplex stainless steel THIRD QuaRTeR, 2014 31

technical reviewSTruCTural STaiNlESS STEEl

Table 2: Mechanical Test Requirements (aSTM a240M-12a)

Grade Gauge Rp0.2 Rm Elongation Young’s (mm) min min min Modulus of Elasticity (Mpa) (Mpa) (%) (GPa)3CR12 t <3mm 280 460 18 200 t ≥ 3mm 300 460 20 200304 All 205 515 40 193316 All 205 515 40 1932001 All 450 620 25 2002101 t ≤ 5mm 530 700 30 200 t > 5mm 450 650 30 2002304 All 400 600 25 2002205 All 450 655 25 200

Figure 1: Selection of stainless steels where aesthetics are important

can be significantly lower than if the structure had been made from an austenitic stainless steel of equivalent corrosion resistance. In addition, the cost compared to carbon steels can also be competitive, provided Life Cycle Costing (LCC) is taken into account. For example, when duplex reinforcing bars are selected instead of carbon steel, the overall increase in installed costs, depending on project complexity, ranges from 1 to 15%.

In the case of the Haynes Inlet Bridge in Oregon, USA, the use of 2205 increased the total cost by 13% and the final cost was $12 million. However, this bridge has a design life of at least 100 years. If carbon steel reinforcing bars had been used, the bridge would most probably need replacing in 50 years at a projected cost of $25 million. In addition, the bridge is expected to have minimal maintenance costs, compared to a bridge using carbon steel reinforcing bar.

Figure 1 shows which stainless steels would be selected for structural applications, depending on the environment, assuming aesthetics are important and no staining is

acceptable. This is based on the Corrosion Resistant Classes (CRC) as detailed in EN 1993-1-4. The PRE(NMn) formula has been designed to take into account the negative effect of manganese, (Pettersson, R., & Flyg, J. (2004), Electrochemical evaluation of pitting and crevice corrosion resistance of stainless steels in NaCl and NaBr, Acom.)

If aesthetics are not important, 3CR12 is suitable for all environments, from a corrosion resistance point of view.Conclusion

3CR12 is suitable for any atmospheric environment, from a corrosion resistance point of view, provided that aesthetics are not important. For inland atmospheres, 304 or 2001 can be specified. Although the cost per tonne of this lean duplex is more than 304, the down-gauging that is possible due to its high strength means that the cost of the structure can be lower. For marine applications, 316, LDX® 2101 or 2304 can be specified, with the lean duplexes having significant cost benefits. If there is any danger of sea spray or splashing, then 2205 can be specified.

32

website, acting CEO of the Government Communications and Information System, Phumla Williams(5), paints a positive picture: “There is no better time to be a young South African than today. The government NDP has prioritised the advancement of young people, particularly their participation in the economy, so that they can take their rightful place in society.”

In the past, legislated intervention could inhibit personal career progress. Competition for certain jobs was not possible as colour, not competence, was the qualifier. The National Party government was the author of Apartheid. Yet, years before 1948, laws were passed which based fitness for a job on colour. The Mines & Works Regulations Act of 1912 dictated that only whites could be employed in blasting, running elevators, driving engines and supervising boilers, or as shift boss. Job protection for whites was widespread for decades. The South African Railways & Harbours maintained the practice into the 1970s. Only then did blacks begin to find opportunities in posts previously reserved for whites.

As a child, I was unaware of this discrimination. My father, John Irvine Crawford, simply didn’t believe that there was merit in getting something for nothing. As far as I can tell, none of my ancestors believed in the easy road to a good life. Paternal grandfather, Jock Irvine Crawford, came to South Africa from Scotland to fight in the Anglo-Boer War; and finally was General Secretary of the MOTH movement. Maternal grandfather, Frank Smith, chose a different row to hoe. Born in the small Scottish town of Stonehaven, Frank was

indentured to learn stonemasonry; thereafter headed for the British Bechuanaland town of Vryburg where he mixed with blacks, boers, English missionaries and Lithuanian feather merchants, made a small fortune during the ostrich feather boom, finally becoming one of this country’s first air-conditioning experts before enjoying well-earned retirement in a large stone house (built by another mason) on Durban’s Berea.

Great aunt Marion Crawford, not content to be a regular nanny, became Governess to Princesses Elizabeth and Margaret. ‘Crawfie,’ the girl to be Queen called her.

As a toddler and pre-schooler, my friends were of many a different creed, culture and country. We competed in every conceivable way and the question of work ethics related to colour never entered my mind. My pre-degree years at the University of Natal were also competitive, particularly when I contended the post of News Editor of campus newspaper, Dome.

Soon after starting work, I realised that my colleagues and I were all working very hard. A stint as management trainee at Unilever was followed by other opportunities in marketing. I was convinced that I was ready to take on the United States. “They’ll eat you alive in New York,” cautioned many friends. Soon after arriving in the US I became aware of how hard the people in some countries have to work. I still had no inkling of how much tougher competition was in the Far East.

To put it bluntly, my wife and I worked our butts off. Rather than “being eaten,” we developed a sustainable business by offering more than already-established consultants in our field. On visits to South Africa, we could not help but conclude that South Africans across the spectrum had it very easy.

Since returning just after South Africa’s first democratic election, I’ve seen no evidence to change my view.

Very recently it was reported that young South African blacks are now more interested in working for government than the private sector. If government jobs are being sought because they promise “cushiness” and greater perceived security, this country is in trouble.

Continued on page 33...

Inexpensive labour and power, together with a government striving to attract foreign investment, is making Ethiopia more

attractive than many other African countries. “African nations have a compelling opportunity to seize a share of the estimated 80 million jobs that will be lost to China as its manufacturers lose competitiveness,” says Justin Lin, a professor of Economics at Peking University.(1)

I wondered what effect would the metal and engineering workers strike have on the South African economy already hard hit by the five-month walkout in the platinum sector, and which has been blamed for the economy’s 0.6% contraction in the first quarter of 2014.

Although now technically over, the outcome of the Numsa-led strike is a pyrrhic victory. Numsa didn’t get what it wanted and many employers feel that the 10% increase will push their companies over the edge.

If Ethiopia’s workforce can take on the Chinese, how do we rate? According to Andre Slabbert and Wilfred I. Ukpere(2), it is a recognised reality that there is a substantive “negativity” in the work ethic of the South African labour force, possibly in relation to historical and cultural factors. The Chinese work ethic is diametrically opposed to that of South Africa. They drew the conclusion that one of the major challenges confronting South Africa since the “triumph of democracy in 1994” is the low productivity of labour, and that recognition of the gaps in terms of behaviour towards work would stimulate this country’s international competitiveness.

Could they be saying that South Africans are lazy? Errol Freeman(3), MD of recruitment company, Lulaway, commented that it has entry level opportunities for 1 000 to 2 000 people monthly in Gauteng and the Western Cape. A problem is that job seekers with Matric but no university degree often feel that entry level jobs are beneath their station.

Xolani Qbeka(4), CEO of the Black Business Council, observed that “SA’s alarmingly low productivity levels and work ethic must become the topic of an urgent national conversation.” He concluded that people perceive government’s role to be that of a provider of jobs and opportunities: “They don’t say how they will do things for themselves, as well as for their country.”

On the South African government

NO SaCrED COWSGary Crawford’s

Culture, Country, Colour & Competitiveness

Dave Slater, a genuine stainless steel industry luminary and past Sassda executive director, passed away on Monday, 11 August 2014. Having battled with cancer for some time, Dave passed away in hospital in Grahamstown,

with his family at his bedside. Dave was awarded the Achievement Award at the 2012 Stainless Steel

Awards Banquet, in recognition of his services to the stainless steel industry. Dave will be remembered for his management and guidance of Sassda,

as executive director for nine years, from 1994 to 2004 - a time as he described as “heady days”. The stainless steel industry was in a growth phase and Sassda was expected to keep up and expand its activities. Major capital projects relied heavily on local manufacturing expertise and investment opportunities in all spheres of industry were there for the taking. Sassda’s industry sector principle was extended to include a couple of newly established industry activities and the membership of the association grew rapidly.

Dave was also the man behind the biennial Stainless Steel Awards, which have now become such a feature of the industry.

“My best memories of Sassda include the amazing sense of common purpose that existed among industry rivals at that time as well the fun that we all had at the various Sassda conferences and functions. I believe that Sassda’s success is largely due to the vision of the early pioneers of the stainless steel industry, as well as to the fact that the association was well funded in terms of the levy system.”

Our condolences go to Dave’s wife, Lee, their four children and eight grandchildren.


Continued from page 32...Signs of economic woe are there. The

IMF has just lowered its South African 2014 growth forecast to 1.7%. Finance Minister Nhlanhla Nene has indicated that the economy is unlikely to grow by the 2.7% forecast by his predecessor. Yet, the IMF’s outlook for the total sub-Saharan region is 5.4%.

Anglo American(6) has just reported that its coal business in South Africa is 50 percent below that of its coal operations in Australia. CEO Mark Cutifani commented that some of the difference may be attributed to the number of days worked “which South Africa needs to reform as an industry in order to remain competitive”.

Usually the bearer of good tidings, Steuart Pennington(7), in September 2013, quoted the Global Competitive Report of the World Economic Forum. In the 2010 ranking of 139 countries, South Africa’s Labour Market Efficiency was in 97th position. The 2013 rankings placed South Africa 116. In terms of cooperation in labour-employer relations, we now rank 148 out of 148 countries! Poor work ethic in the labour force is cited as one of the top problems.

On the other hand, South Africa is

ranked 12 on “Reliance on Professional Management,” and our banking system is ranked a very high 3.

In terms of GDP per capita, the IMF in 2013 ranked South Africa 85. Botswana ranked 78 and tropical island, Mauritius, came in at number 70. So much for our ability to produce.

At the May 2013 Manufacturing Indaba conference, Kaizer Nyatsumba, CEO of Seifsa, said(8): “The government cannot stand by idly while some labour movements are sowing seeds of discord and destruction on the country’s factory floors. It must ensure that labour always behaves as a responsible law-abiding stakeholder group and not as an anarchist.”

We live in a democracy. We have the right to work … or not. We have the right to sculpt our own destinies.

Surely, now is the time for all South Africans to take a good, hard look at their own productivity. Unless, of course, we don’t care if our country continues to lose out to the rest of Africa and the World.

I thought we’d come a long way since 1994. Maybe not.

When it comes to spouters of worn-out

socialist rhetoric, I can’t even find it in my heart to side with Oscar Wilde who said: “I may not agree with you, but I will defend to the death your right to make an ass of yourself.”

References:(1) Deborah Brautigam, (2010) “The Dragon’s Gift: The Real Story of China in Africa”.(2) Andre Slabbert, Wilfred I. Ukpere, (2011) “A comparative analysis of the Chinese and South African work ethic” - International Journal of Social Economics, Vol. 38 Issue 8.(3) (March 2013) “Are South Africans Lazy?” - HR Recruitment.(4) Razina Munshi, (25 July 2013) “New work ethic needed” - Financial Mail.(5) Phumla Williams, (11 June 2014) – www.gov.za/blogs/2014/sa.(6) Martin Creamer, (29 July 2014) – Mining Weekly.(7) Steuart Pennington, (11 September 2013) “South Africa’s Global Competitiveness 2013 - Good news and bad news” – South Africa, The Good News.(8) Kaizer Nyatsumba, (May 2014) – “Manufacturing Indaba” Conference Proceedings.

DavE SlaTErobituary


3M is effecting a paradigm shift in South Africa’s metal fabrication, casting and forging industry

with its Cubitron™ II metallurgical grinding abrasives. Industries that have generally utilised generic, low-grade abrasive technology in metal fabrication, now have access to a product that produces a more consistent finish at a faster rate, over a service life that is at least double that of its nearest competitor.

“By offering a technology-based, production-orientated holistic abrasive system, 3M is moving metal fabrication away from an overriding focus on product unit cost, which has translated to utilising conventional, cheaper, generic abrasives in a manually-intensive production sequence,” Marc Glautier, Sales Manager, Abrasive Systems Division, Industrial Business Group,3M South Africa, explains. “3M optimises the entire abrasive process around Cubitron™II technology to reduce processing time and eliminate secondary production phases, for a leaner, streamlined operation that delivers maximum return on investment.”

Cubitron™II technology, comprised of a uniquely manufactured and arranged ceramic mineral grain, is utilised across coated, portable-bonded and grinding abrasives to deliver solutions for cutting, blending, deburring, rough-grinding and precision-grinding operations. The abrasive composition is defined by precisely-shaped, uniformly-sized, vertically-oriented triangular grains of ceramic mineral in grits of 36, 60, 80 and 120.

The precision shaped Cubitron™ II grain delivers a clean cut of consistent depth, which is achieved with less aggression, effort and time – around 30 percent faster – than conventional ceramic grain abrasives, where a blocky and irregular grain structure tends to plough and chunk the material surface. The grain continuously fractures as it wears to maintain sharp points and edges that enable the product to retain its maximum cutting potential across a dramatically extended service life.

This consistently cleaner, precise cut

generates a reduced amount of operational heat on the workpiece, which reduces heat-related material stresses like cracks and surface oxidation that require reworking or refurbishment, and prolongs the lifespan of the mechanical equipment bearings.

A less-severe depth topography of the grain produces a more uniform finish and eliminates sequences from the abrasive process as the material is brought towards a polish-ready stage.

Tailored abrasive processes3M works with its customers as

a productivity partner, offering a systems approach to driving value to metal fabrication processes through tailored abrasive sequences that go far beyond product supply.

“In understanding what is expected as an output from a given metal finishing process, 3M develops an operation-specific abrasive process based on the Cubitron™ II range and at times in combination with Trizact™ and Scotch-Brite™ to get to that desired result in the fastest possible way at the lowest possible cost with maximum efficiency,” explains Yemi Fatunla, Country Business Leader, Industrial Business Group, 3M South Africa. “3M drives value to its customers by eliminating inefficiencies from every stage of

their production.”

Wide grind applicabilityCubitron™II yields equally satisfactory

performance in ferrous and non-ferrous metal applications, and is ideal for tough-to-grind metals like titanium, stainless steel, nickel alloy and cobalt chrome, which have traditionally exerted a high strain on mechanical and abrasive equipment damage due to their high-strength molecular structure.

Cubitron™ II technology advances the technology of its first generation predecessor, Cubitron™ I for a greater cutting ability, with a more uniform pyramid size and arrangement, the addition of a grinding aid which limits the tendency of the metallic dust to collect onto the abrasive, and a greater range of products.

Cubitron™II is available from 3M certified channel partners across South Africa.

3M captures the spark of new ideas and transforms them into thousands of ingenious products. Our culture of creative collaboration inspires a never-ending stream of powerful technologies that make life better. 3M is the innovation company that never stops inventing. With $31 billion in sales, 3M employs 89 000 people worldwide and has operations in more than 70 countries. For more information, visit www.3M.com.

3M’s breakthroughtechnology is tough!

company profile3M


NEWSsassda

The Southern African Stainless Steel Development Association (Sassda) this year celebrates its 50th Anniversary. In honour of this, Sassda will be using the 2014 Stainless Steel Awards Gala Banquet, not only to recognise achievements in the stainless steel industry, but also to celebrate this milestone in Sassda’s history.

The Awards serve to recognise and applaud exceptional achievements within the stainless steel industry. The Awards promote excellence, innovation and entrepreneurial development. By profiling innovative thinking and successes from the industry, the reputation of the Awards and stainless steel is enhanced both locally and internationally.

Entries have been submitted from individuals and companies that are involved in the design, production, conversion, distribution, use or specification of stainless steel.

Finalists and winners will be selected from the entries by a panel of judges and the winners will be announced at an Awards Gala Banquet to be held on 6 November 2014 at The Indaba Hotel, Fourways in Sandton.

This year 10 member companies have come forward to sponsor the Awards. Thanks to their generosity, Sassda is able to celebrate the best and the brightest in stainless steel.

This year’s sponsors are Air Products South Africa, Afrox, Columbus Stainless, Euro Steel, fischer South Africa, Macsteel VRN, NDE, ND Engineering, Rimex and Stalcor. They are all leaders in their field and great supporters of stainless steel in South Africa.

“Without the generous support of our sponsors of the 2014 Stainless Steel Awards, this prestigious event would not take place. Sassda would like to thank each and every one of them for their commitment to the industry and their support of the Awards,” says Bill Scurr, the executive director of Sassda.

50Th ANNIVERSARY AwARDS SPONSORS

Air Products South Africa manufactures, supplies and distributes a diverse portfolio of atmospheric gases, specialty gases, performance materials, equipment and services to southern African.

Air Products touches the lives of consumers in positive ways every day, serving customers across a wide range of industries from food and beverage, mining and petrochemicals, primary metal and steel manufacturers, chemical applications, welding and cutting applications to laboratory applications.

Founded in 1969, Air Products SA has built a reputation for its innovative culture, operational excellence and commitment to safety, quality and the environment. In addition it aims to continue its growth and market leadership position.

“Our renown in the industry for supply chain efficiency is supported by our long-term investment strategy, which balances risk management with business opportunities,” says Air Products’ Dustin Mulder. “Air Products is a proud supporter of the 2014 Stainless Steel Awards.”

Columbus Stainless is Africa’s only producer of stainless steel flat products. It has created a modern, efficient stainless steel production facility that meets the varying demands of users in domestic and global markets. With a wide range of products in austenitic, ferritic, utility ferritic and duplex stainless steel grades, Columbus is able to offer a variety of grades suitable for most applications, and sound technical support.

The quest for new and innovative products and processes is never ending; the company have successfully pioneered 3CR12®, a highly competitive utility ferritic stainless steel.

Columbus is the cornerstone of the SA stainless steel industry and it remains committed, supportive and involved in the government’s localisation and beneficiation drive. Columbus Stainless is a proud sponsor of the Sassda 2014 Stainless Steel Awards, as it represents innovation, sustainability and achievement in stainless steel and its boundless potential.

African Oxygen Limited (Afrox) was established in South Africa in 1927 and listed on the JSE in 1963, Afrox is sub-Saharan Africa’s leading supplier of gases, welding and safety products, operating in South Africa and 11 other African countries, as well as managing operations in 5 more on behalf of its parent company, The Linde Group.

Afrox’s product offering includes the full range of large-volume on-site and bulk gases, cylinder gases, scientific gases, refrigerants, packaged chemicals and helium, CO2, medical gases and medical products, hospitality gases, gas equipment, welding products and ancillary safety products.

“The stainless steel sector is an integral part of Afrox’s business and we are proud to be associated with Sassda, having been a member since inception in 1964,” says Afrox’s Johan Pieterse. “We would like to take this opportunity to wish Sassda all the best on its 50th anniversary.”

Euro Steel was established in 1993 as a niche supplier of specialised stainless steel and aluminium in plate, sheet, coil, sections, pipe, fittings and flanges and other related products. The company has grown in leaps and bounds, opening Euro Steel distribution centres all over South Africa and Africa. Euro Steel is proudly part of the Afmetco group of companies.

Euro Steel’s core business is the stocking, processing and distribution of corrosion resistant metals such as stainless steel, including duplex stainless grades, other non-standard special and hard wearing steels and aluminium in most profiles. It specialises in stocking the full range of stainless steel and aluminium flat and long products and distribute an extensive range of standard and customized extruded aluminium products.

Euro Steel is proud to be a member of Sassda and a sponsor of the 2014 Stainless Steel Awards.

NEWSsassda


50Th ANNIVERSARY AwARDS SPONSORS CONT...

fischer South Africa is part of an international group of companies headquartered in Germany, with locations in 7 different countries around the world. fischer South Africa is based in Centurion, and is comprised of 3 different companies, each engaged in a different aspect of manufacturing stainless steel tubing. With 24 years of experience in the manufacturing of stainless steel tubing, fischer South Africa prides itself on a long track record.

fischer South Africa are manufacturers of longitudinally laser welded stainless steel tubing ranging from 15mm to 160mm diameter, which can be square, rectangular or oval in shape and is available in a wide range of stainless steel grades and gauges.

“This year we are once again proud to be sponsors of the Stainless Steel Awards, and in doing so we hope to inspire people to achieve greatness in their work as well as their continued support of the industry,” says fischer South Africa’s Erich Kotzenmacher.

ND Engineering, formerly Metso ND, is one of SA’s largest and most reputable engineering and fabricating companies. Elvis Green, the managing director, recently purchased 70% of the shareholding from its Finnish parent, making the company a 100% locally-owned BEE company with local and international accreditation, standards of excellence and clientele. ND Engineering offers its clients the most up to date technology and solutions, with the support of a comprehensive worldwide network of knowledge and resources.

ND Engineering’s versatility, efficiency and excellent customer service, has the company being a top competitor in an ever-changing national and global market. ND Engineering are proud to be sponsors of the 2014 Stainless Steel Awards,” says managing director Elvis Green. “We believe in growing talent, expertise and the greater South African stainless steel industry.”

Macsteel VRN is the major supplier of stainless steel and various aluminium products in the market. Macsteel VRN’s central stock warehouse and its two main service centres, operate specialised world-class processing equipment consisting of flame, plasma and laser cutting services. Additional value added services include decoiling, guillotining, customised cutting to size, rolling, bending, drilling and polishing, all supplemented by computer numerically controlled machinery and computer-aided design programmes, offering cost efficient benefits to its customers.

Macsteel VRN’s considerable value proposition includes a strategic countrywide network of 17 branches, which provide inventory and customized pre-processed steel.

Macsteel VRN Stainless Executive Charles Cammell says: “We are proud to be sponsors of Sassda’s 2014 Stainless Steel Awards. Macsteel VRN is committed to growth and development in the industry.”

Rimex Metals South Africa is a proud sponsor, and two time award winner (service excellence and innovation), of the Sassda Stainless Steel Awards. Rimex are industry leaders in development and manufacture of aesthetic and functional finishes on steel sheet and coils, which include rigidized patterns, coloured, and various polished finishes. The company’s expertise centres on developing new and exciting products for the architectural and building industry, forging a glittering track record, which includes iconic buildings and projects throughout the globe.

Rimex is a customer-oriented company, which has a product range that includes a smorgasbord of standard finishes, but Rimex is also able to cater for continually changing trends through offering bespoke design for custom and individual needs. Rimex is the only company that manufactures all these finishes under one corporate roof.

“NDE is a regular and committed sponsor of the Sassda Stainless Steel Awards, to support development of the stainless steel industry in Southern Africa and encourage innovation and sustainability,” says NDE managing director Mike Campbell, who heads up a management team with a diversity of academic and technical skills in stainless steel applications.

NDE is a respected player with a 60-year history in the South African stainless steel industry and is one of the largest privately owned stockists and distributors, drawing supplies from local and international manufacturers and converters. NDE has been a proud sponsor of the Stainless Steel Awards since their inception in 1998. “The Awards stimulate creativity and excellence in our industry and this is the kind of initiative which we believe in supporting,” says Campbell.

NDE’s focus is on customer service with a guarantee of product quality, sensible stock holding, timeous delivery and a fair price.

Stalcor is an independent entrepreneurial stockist and distributor concentrating on stainless steel and aluminium. Stalcor is the only distributor to offer a Customer Loyalty Incentive in the metals industry. The programme entitles customers to share in the Customer Loyalty Programme’s 14% shareholding in the company.

Stalcor is as a customer-centric stockist and distributor. Its “can do, will do, must do” attitude, makes it an essential contributor to its customers’ success. It believes in sharing its triumphs with its loyal customers and ensuring that staff feel proud and invigorated to be part of the Stalcor family. Suppliers view Stalcor as a highly valued and reliable route to market.

“Stalcor is a proud sponsor of Sassda’s 2014 Stainless Steel Awards,” says Stalcor’s Chris Ransome. “It’s a great vehicle to show the industry that we support innovation, development and growth.”

Southern African Pumps and Systems DevelopmentAssociation (SAPSDA) www.sapma-sa.co.zaM.E.S. Stainless Engineering t/a Stainless Engineering www.stainless-engineering.comStarweld [email protected] (Pty) Ltd www.hessoon.co.zaFastenright (Pty) Ltd www.fastenright.co.zaAblington Trading cc t/a West Projects www.hills-united.co.za


NEWSSassda & industry

NEw MEMBERS

Air Products South Africa has once again proven its market leadership when it comes to finding innovative solutions to industrial challenges. The company has recently designed and implemented a new way of mixing gases using thermo-compressor technology, and as part of ongoing trials has successfully commissioned the first station of its kind at ArcelorMittal’s Newcastle operations.

Ian Gorin, Process Engineering Manager at Air Products South Africa, explains: “The problem was that the mill required a higher pressure gas than what was available from the blast furnace gas. Instead of the traditional method of using a booster compressor powered by electricity, we designed a gas thermo-compressor. This system controls and modulates the gas mix ratio to give exact calorific value as required by the customer.

“To compress the blast furnace gas by 25 kPa (according to the design flow rate) would have required a blower consuming 145 kW of power,” Gorin continues. “The major benefit of the gas thermo-compressor is that it utilises zero electrical energy which obviously translates into significant cost savings for the customer.”

The complete gas thermo-compressor station was designed by the Air Products South Africa projects team at the company’s main facility in Vanderbijlpark. The team also jointly managed the installation with Air Products’ Newcastle operations team.

“The need for the station arose from an energy deficit at ArcelorMittal,” says Gorin. “The steel mill was importing a high calorific value methane-rich gas, while the blast furnace was flaring gas. The gas is combustible and usable if mixed in the correct proportion with methane-rich gas, to create a mixed gas with the correct calorific value.”

The system works on the principle of using the higher pressure from the methane-rich gas as the motive gas to induce a flow of low pressure blast furnace gas – thereby creating a mixed gas at an intermediate pressure which is higher than the blast furnace gas.

By modulating the various pressures, the thermo-compressor produces the mixed gas at a set flow rate, and in the correct ratios of

AIR PRODUCTS

the gases as required by the steel mill.According to Gorin, the concept would work well where there are integrated mills, such as

a blast furnace which produces low calorific value gas, as well as a mill using higher calorific value gas.

“The concept of mixing gases using a thermo-compressor, and not an electrically-powered booster fan, is exclusive to Air Products. We are very proud of this ground-breaking innovation,” says Rob Richardson, General Manager: On-Sites at Air Products South Africa.

“We are also proud of the fact that our first gas thermo-compressor station was commissioned on time, on budget and according to customer requirements.”

“While this concept is new to the South African market, it will also be rolled out internationally, and has important implications in terms of energy efficiency and cost-savings,” Gorin maintains.

“This innovation provides a creative alternative to using electricity - which is becoming increasingly compelling for all users. Furthermore, it saves the customer money by not having to install a booster fan/compressor, which can cost up to ten times as much.”

“The successful commissioning of the station is testament to Air Products South Africa’s ongoing commitment to finding innovative solutions for our customers when it comes to increased productivity and energy efficiency.

The new station has succeeded in meeting the customer’s exact requirements, while at the same time providing meaningful cost benefits,” Richardson concludes.

NEWSindustry

Multi Alloys is South Africa’s leading supplier of an extensive range of duplex alloys suitable for highly corrosive applications.

Ken Perel, part owner of Multi Alloys, gives an overview of this valuable Alloy: “Duplex Alloys, so called because of a microstructure which is a mix of austenite and ferrite, continue to increase in popularity. They offer the end user an extremely useful combination of properties including high strength, reasonable cost and corrosion resistance. Alloy composition plays an important role in determining these properties and with respect to corrosion resistance it’s the level of chromium, nickel, molybdenum and nitrogen that are the core elements but copper, tungsten and manganese have important roles in enhancing the properties. A useful property of duplex stainless steels is their coefficient of thermal expansion which is closer to that of a carbon steel than an austenitic stainless steel. This means that, when combined with resistance to stress corrosion cracking and pitting corrosion, as may occur in seawater and chloride contaminated waters, duplex grades are eminently suitable to use in heat exchanger applications.”

“The strength benefit of duplex grades is often emphasised in structural applications but it also has spin offs in rotating machinery as well. If the amount of material that is needed can be reduced by optimising the design for duplex grades, there is a direct benefit but there may be an indirect benefit as

MULTI ALLOYS


well – the drive system and support structure can possibly be downgraded. And in process industry applications it may be possible to use a lighter wall pipe and still attain the design operating pressure.”

Multi Alloys has made a huge commitment to stock investment in a wide range of Duplex stainless steel items. “’Duplex stainless steels’ was once a term that applied to a few alloys but today, this branch of the stainless steel family tree is developing in to a family tree in its own right!” Perel adds, “Sandvik 3RE60 was probably the first duplex grade used on a large scale in South Africa. This was during the 1980’s and was for heat exchanger applications. Since then we have come to know Lean Duplex grades, Super Duplexes and even Hyper Duplex grades but the work horse alloy is the middle of the range SAF 2205 and it’s in this alloy that the bulk of our investment has been made. We are also carrying stock of SAF 2507”.

Perel observes, “It’s interesting to note that this range of alloys is at a stage in which ‘grade extension’ is taking place such as our round bar is stocked in SANMAC 2205 which has enhanced machinability and of course this is beneficial in a production environment.”

“This basic grade is also available in 2 compositional specifications the newer one, UNS S32205, having tighter limits on elements that provide for enhanced resistance to pitting corrosion. For specific applications there is a duplex grade that has enhanced formability.”

Remarks EEP Director of Business Development, Graham Whitty, “Multi Alloys, through its affiliation with Associate Company, Energy Engineered Products (EEP), offers a range of Duplex Alloy products unmatched in South Africa. Our association sets us in a truly unique position as very few companies are able to offer such a holistic product and service package. Our expansive range enables us to straddle both the manufacturing industry with round bar, hex bar, plate and sheet material ex stock, as well as the processing industry with an offering of pipes, flanges and valves.

“With regards to service we offer a free day-long product knowledge training seminar on the materials we supply,” continues Whitty. We have expertise in material selection for corrosive applications as our products are primarily used in challenging environments. Overall, our in-depth knowledge and understanding of the performance characteristics and technical aspects of our product range are paramount to assisting and guiding our customers in selecting the correct materials best suited for complicated and stringent environments.”

“In summary, owing to its many property and cost saving benefits, Duplex Alloys are being used more and more by industries such as power generation, water, mineral processing, general engineering and fabrication, pollution control, automotive, petrochemical, marine, oil & gas. Their properties make them highly suitable for heat exchangers and desalination plants,” concludes Perel.


CONraD ruhpersonality profile

Conrad Ruh was born on 15 September 1953 in Phalaborwa. He attended Brothers of Charity

College in Polokwane and then obtained a BA at Wits University, a BCom through UNISA and his EDP at the UCT Graduate School.

Conrad commenced work as a marketing trainee in February 1975 with a processor and merchanting stainless steel, aluminium and steel company by the name of H Alers Hankey. At the end of 1976, the company was acquired by the S&L Group and the steel division was absorbed by Baldwins Steel.

Here he was appointed as Group Materials Manager responsible for all purchasing and production planning of the two service centres. In 1979 he was appointed Group Marketing Manager and was responsible for taking Baldwins into the auto industry by securing supply contracts with Toyota, VW, GM, Nissan (Steelmobile) and August Laepple.

In 1983 Conrad was appointed Executive Director in charge of all Baldwins Steel Service Centres.

In 1994 Conrad accepted a position as SA Group MD of Hall Engineering. The company had a steel forge, metallurgical heat treatment operation and was a distributor of engineering steels through its 4 branches trading as Hall & Pickles and its operations in Malawi.

In 2000 there was a MBO of Hall Engineering in the UK and the new owners delisted the company from the London Stock Exchange and sold off all if its overseas operations. Conrad negotiated the sale of Hall & Pickles to NTC/Macsteel; the speciality steel distribution of NTC and Hall & Pickles were amalgamated on an extended site in Dunswart and traded as Macsteel Special Steels, which Conrad headed up as CEO.

In 2008 Conrad took-up the position of CEO of Macsteel VRN a larger business unit within the Macsteel Group. Not only is Macsteel VRN a processor and distributor of stainless steel and aluminium, it is also the leading supplier of speciality carbon plate.

What is the most important thing to you?To spend quality time with my wife Janet, my children and grandchildren.

What is the most important lesson you have learned? You are only as good as the people around you – build quality teams.

What’s your favourite stainless steel object?My stainless steel Armillary sphere.

How do you define happiness? When home life, work life and spiritual life are in harmony.

What do you do in your personal time? Read, watch sport, spend time with family and I am an avid traveller.

What is your biggest accomplishment?In the 40 years that I have been in the steel industry and have had to restructure companies and divisions I have never had

to retrench people.

What else would you like to accomplish in this life time?From a business perspective – impart as much of the knowledge that I have gained in the 40 years of work to the next generation of business leaders. In my personal life – contribute to the upliftment of all South Africans through education.

Tell us something not many people know about Conrad ruh.That I have a double barrel surname (Kolkenbeck-Ruh) (known to SARS and mostly family).

What are you currently reading?Good Morning Mr Mandela

Who do you really admire?Pope Francis

Why stainless steel? I like its clean lines and durability.

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Air Liquide Southern AfricaTel: +2711 389 7000, Rolf Schluep (Welding & Cutting Manager) +2711 389 7095www.airliquide.co.za

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CATALYTIC CONVERTERS & TANK CONTAINERS Steel...R29.95 Third Quarter, 2014 the history of CATALYTIC CONVERTERS & TANK CONTAINERS Macsteel VRN profile If you are using stainless steel