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Mpumalanga Business 2020-21 edition

  • Text
  • Invest
  • Business
  • Investment
  • Economy
  • Africa
  • Africa
  • Exxaro
  • Sasol
  • Sappi
  • Economic
  • Programme
  • Manufacturing
  • Province
  • Provincial
  • Sector
  • African
  • Tourism
  • Municipality
  • Mpumalanga
The 2020/21 edition of Mpumalanga Business is the 11th issue of this essential publication that since its launch in 2008 has established itself as the premier business and investment guide for the province. Updated overviews of each of the key economic sectors of the province are included, with references to the latest investments by companies across multiple sectors. These include Sappi, Sasol and Sonae Arauco, which is expanding its White River factory. Afrimat is considering investment in the mining sector, while Exxaro Resources, South32 and Pan African Resources are among the mining companies spending on extending the life of existing mines. A useful article on what incentives are available to investors from various departments and agencies is provided. Mpumalanga has several investment and business opportunities in a wide range of sectors.

FOCUS Columbus Stainless

FOCUS Columbus Stainless The future of manufacturing. Columbus Stainless, a member of the Spanish based Acerinox SA Group of Companies, is South Africa’s and Africa’s only producer of stainless-steel flat products. Founded in 1966, Columbus Stainless is the only fully integrated, technologically advanced, single site stainless-steel producer in Africa. The plant based in Middelburg, Mpumalanga, produces a wide range of Austenitic, Ferritic, Utility and Duplex grades of stainless steel suitable for most applications and has melting capacity of 1 000 000 tons per annum to supply stainless-steel flat products (coils, plates and sheets) to various final customers, distributors, engineering shops and mines globally (in Africa, Europe, the United States, Asia, etc). The company supports the livelihoods of 1 300 employees and 600 contractors. Through its BBBEE programme, Columbus Stainless actively promotes doing business with small, medium and micro enterprises (SMMEs) owned or controlled by black entrepreneurs who are able to supply quality products and services in a timely and competitive manner. These businesses have created more than 100 sustainable jobs in the last five years. Columbus produces many grades of stainless steel, which include the three main families of stainless-steel grades: Columbus Stainless’ factory. • Austenitic Grades: Popular grades include 304 and 316 which are used in applications demanding high hygienic and cleanability properties such as equipment used in dairy processing and meat-handling, water storage tanks; catering and hospitality (cooking utensils, food processing equipment, cold storage) and healthcare industries. • Duplex Grades: These include 2304 and 2205 which are used in the chemical, petrochemical and mining industries due to their excellent corrosion resistance properties in very harsh conditions for various types of processing equipment and holding tanks. • Ferritic Grades: Popular grades include 430 and 441 which are used in general kitchenware and catering applications as well as automotive applications, ranging from exhaust systems to highly visible trim. The ferritic grades also include the very versatile and popular 3CR12®. 3CR12® is a low-cost utility ferritic stainless steel developed by Columbus Stainless and used widely throughout the South African mining industry as a cost-effective solution to mild corrosion environments in a wide range of structural applications. It offers excellent properties in sliding wet-abrasion conditions due to its superior corrosion resistance and slideability characteristics when compared to carbon steels. Applications are widespread and include materials handling environments in mines and coal wash plants. It is used for applications such as ore cars and wagons, chutes and launders as well as shaft MPUMALANGA BUSINESS 2020/21 30

steel work, chimney stacks, ducting, roofing and cladding (most commonly poultry and piggery buildings), walkways including grating, hand rails, stairs, electrical boxes and security fencing. It is also widely used in sewage processing plants and municipal water storage tanks. Mpumalanga boasts a wide variety of large industries, including power generation, mining, farming and manufacturing. To support these diverse industries throughout South Africa, the steel industry lies at the helm. Stainless steel has proven itself as a multi-functional and adaptable metal of choice and has proven successful and offers great value to the manufacturing industry. The manufacturing industry as a whole is under great strain, especially in this tough economic climate. With this in mind, one has to consider the financial attributes of any project, structure or equipment. Life-cycle costing is therefore an invaluable tool that takes into consideration the initial material cost, fabrication costs, maintenance and refurbishment costs, lost production costs due to downtime and possible replacement cost over a defined product’s lifespan. Stainless steels generally have higher input cost compared to some competing materials, yet they are proving to be the most cost-effective long-term choice. The case study related to coal rail wagons in the South African market clearly illustrates these principles. Case study: coal wagons In 1985, trial coal wagons were manufactured out of 3CR12 material in the hot rolled and annealed (HRA) surface finish. These wagons are used to transport coal between Ermelo and Richards Bay. They have a payload of 80 tons and make the journey roughly five times a week. Before 3CR12, the wagons were made from Cor-Ten, but these only lasted 8-12 years, with refurbishment required after five years. Over the years, inspections of these coal wagons have been conducted after 27 years of service. Such a study was done in 2012. The wall thickness of these coal wagons was measured using accurate ultrasonic measurement equipment. The mild-steel wagons recorded corrosion-abrasion wear loss of 160 micrometres per annum (160μ/yr). This is attributed to the surface rust or iron oxide being removed, exposing fresh steel. The fresh steel in an oxidising environment reverts back to its natural iron-oxide state, forming a continuous corrosion cycle. Compared to mild steel, stainless steel forms a very thin, tenacious oxide layer which gives it its characteristic corrosion resistance. The metal loss of 10μ/yr was recorded for 3CR12 wagons in this application. From these measurements, 3CR12 coal wagons in this environment have a predicted total life of 65 years. Mild-steel wagons would have to be replaced eight times in this time period, increasing costs and potential lost production time. As the country grapples for sustainable infrastructure development for the future in energy, water and sanitation, transport, digital infrastructure, human settlements, agriculture and agroprocessing, stainless steel is the material of choice due to its durability, low maintenance and sustainability. Columbus Stainless is proud to have contributed to the development of this material over five decades and will continue to do so as Africa and the world continues to grow. Indeed, the future of manufacturing is Stainless. ■ 31 MPUMALANGA BUSINESS 2020/21

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