The Casting of Metals Industry in South Africa 2022

Introduction

The metal casting industry has been contracting over the last two year due to poor economic growth, high input costs, inconsistent supply of electricity and high levels of imports. The value of metal castings exports declined in 2021 and employment in the industry has decreased. There is potential for increased demand for the industry’s products from end users like the mining, automotive and energy industries.

Opportunities

Increased demand from end users like the mining, automotive and energy industries.

Increasing exports due to growth in African end user industries, and the African Continental Free Trade Area agreement. Reducing production costs and time by using 3D printers.

Outlook

The global metal casting industry’s revenue is expected to increase, largely due to higher demand from the automotive, building and construction, and mining industries. The African Continental Free Trade Area agreement should provide opportunities to South African foundries to increase their exports to other countries on the continent. The local automotive manufacturing and mining industries should continue to be large end users of the industry’s products.

Report Coverage

This report is on the casting of metals in South Africa, which produces finished and semi-finished products of cast iron and steel (ferrous metals) and cast non-ferrous metals.

It includes information on the state and size of the sector, influencing factors, trade statistics and developments and information on notable players/ There are profiles of 26 companies in the industry, which include those of listed companies ArcelorMittal South Africa and Hudaco Industries, as well as players such as Atlantis Foundries, Cast Products South Africa, MIS Engineering and Pressure Die Castings.

Strengths

Input materials are available in South Africa.

Various diverse end user industries.

Threats

High levels of imports.

Inconsistent supply of electricity. Increasing costs of electricity, water, raw materials and labour. Large customers might produce their own components using 3D printing. Poor economic growth affects demand for products.

Weaknesses

Energy-intensive production processes mean producers are vulnerable to high electricity costs and loadshedding. Machinery has to be imported. Shortage of skilled employees.