Competitiveness of South African Foundries – A Review and Comparison of Sand, Permanent Mould and Investment Foundries

Abstract:

South African Foundries have promptly been met with challenges from international competition due in part to trade “liberalisation” of South African foreign trade. To objectively evaluate the challenge, data from selected local foundries were analysed together with and compared to international data from selected countries from industry and specific foundry macro level. The review seeks to evaluate the impact of resource use efficiency and resource specific cost on the local foundry and compare the challenges and opportunities available specifically to the local foundry industry. A simplified financial model was used to output an income statement type result containing the major cost elements, to arrive at levels of profitability, which was used to evaluate and compare the competitiveness of the local to international foundry industry. From these results, some macro suggestions for the local foundry industry to achieve sustainable cost competiveness improvements become apparent. Index Terms: South African Foundries, Sand, Investment, Die, Gravity, High Pressure, Benchmarking, Resource efficiency, Resource usage, Resource costs, International comparison.

• Periodical: Advanced Materials Research (Volume 1019)
• Pages: 133-142
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.1019.133
• Online since: October 2014
• Authors: Carl J. Reinhardt*
• Keywords: Costs, Die, Gravity, High Pressure, Investment, Resource Efficiency, Sand, South African Foundries, Usage

References

[1] Engineering News Online Apr. 2014, Natasha Odendaal, John Davies - http: /www. Engineer ingnews. co. za/article/brics-account-for-60-global-foundry-market-2014-04-03/rep _id: 3182.

[2] Report 2012-27 - NFTN Benchmarking Pilot Report – Permanent Mould and Investment Foundries – Carl Reinhardt, Casting Services.

[3] Canada Foundry Association 2003 - Guide to Energy Efficiency opportunities in Canadian Foundries - 2003 detailed study.

[4] Australian Foundry Institute (AFI), Data from Australia, Victoria, Sand Foundries for 2008/(2009).

[4] Russian Foundries Benchmarked against European - Resource Efficiency in Foundry Industry in Russia - Benchmark Study October 2010, containing various data from 2007, 2008 and 2009 – IFC (International Finance Corporation – World Bank Group), GEMCO (Cast Metal Technology Knight Wendling GmbH), The Free State of Saxony (Germany), The Ministry of Employment and the Economy of Finland and Netherlands agency for International Business and Cooperation.

[5] European Benchmark of 1, 101 Manufacturing Companies and 289 Services Companies - from 8 European countries (Austria, Germany, Spain, Greece Ireland, Italy, Portugal, UK), 2001 – Benchmark Index together with ERDF (European Regional Development Fund), Cranfield University, Business Link and REACTE (Regions Enterprises European Transnational Co-operation Actions).

[6] CAEF, The European Foundry Association – Statistics Data – 2008, 09&10 - www. caef. eu.

[7] NADCA, data from Questionnaires sent to American, Canadian and Japanese die casting companies.

[8] NADCA, data from major project measuring energy used in particular companies, as well as furnace specific measurements (2009).

[9] Department of Energy (USA) detailed review published in report Energy Use Selected Metalcasting Facilities – 2003, by Robert E. Eppich (May 2004).

[10] Australian Die Casting Association (ADCA), data from 18 die casting companies collected by CAST-CRC (Aus. ).

[11] The Australian Foundry Institute (AFI), data from Benchmarking 12 gravity casting companies in Australia Victoria (2009).

[12] National Foundry Technology Network (NFTN), data from NFTN Booklet 1, Energy Usage Reduction and Efficiency Increase in Foundries version 1 - 2011, C. Reinhardt and Dr. M. Murray.

[13] Cranfield University, Britain's Best Factories Award Program (Engineering Sector Companies).

[14] Specific Foundry data from individual foundries in Australia, Spain, Russia, India, Mexico, Thailand, China and Vietnam (2010/11).

[15] Industry Canada (IC) – data from Annual Survey of Manufacturers 2009 – Non-Ferrous Die Casting.

[16] American Foundry Society (AFS) and North American Die Casting Association – 2003 Confidential Metal Casting Operational Costs Survey. This survey collected data from 126 foundries, among these were Permanent mould and Investment foundries in the United States of America.

DOI: 10.1016/b978-0-08-022421-3.50035-x

[17] Canadian Foundry Association (CFA), data from 2003 Energy Benchmarks study for Iron and Steel.