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| Producers to benefit from infrastructure projects |
South Africa’s valve manufacturing industry is set to be revitilised by the major water infrastructure projects now being implemented. However, the South African Valves and Actuator Manu-facturing Association (Savama) warns that the industry is still in need of nuturing.Savama chairperson Peter Thomson tells Engineering News that the valve manufacturing industry is recovering alongside the country’s economic development, after a prolonged quiet period.
He says that the past two decades have witnessed a relative dearth of infrastructure projects. As a result, employment in the local valve-manu-facturing industry has decreased to a fraction of its previous size (20% of what it was 20 years ago) with last year’s survey suggesting a total R2-billion spent on valves and actuators nationwide.With South Africa’s water and electricity infrastructure now suffering from insufficient capacity, Savama members hope to benefit from the planned investment pro-jects.
Thomson attributes the industry’s current recovery, for the most part, to the two major water projects under way, namely the Berg Water Project and the Vaal River Eastern Subsystem Augmentation Project as well as the refurbishment of several power stations, and various large-scale mining and reticulation projects.Nevertheless, Thomson urges caution. “While there is much excitement about the projected infrastructure spend, there has so far been more talk than action,” he explains.Recently, major users of valves for water applications have become concerned that local capabilities may be insufficient to meet the needs of the intended infrastructure plans. In response, an initiative has been launched to engage the local valve industry, explain the users’ future requirements and promote cooper-ation between all involved.
Thomson admits that the industry has suffered dramatically from the lack of major projects over the past five to ten years, but remains confident that the industry does have sufficient local capacity to tackle project requirements.
“The local valve industry came close to losing its capability to make certain types of valves and to supply major new projects with substantially locally-manufactured valves,” says Thomson adding that there are few valve-manufacturing companies left in South Africa with the expertise and production facilities required to make large-diameter valves for major projects. He emphasises that while the “turn-around has come just in time, the industry still needs nurturing if it is not to succumb to the importer onslaught”.He points out the strategic importance of local manufacturers and suppliers to South African projects, in particular infrastructure projects. Reliance on overseas suppliers and expertise would further reduce local capacities to repair and replace equipment when necessary.
“It is not sensible for South Africa to rely on overseas companies to supply equipment and know-how for infrastructure projects any more than is already the case as it is critically important that expertise and spare parts are on hand in the event of problems arising,” says Thomson.
South Africa’s valve industry faces a number of key challenges including cost concerns, pressure from overseas imports, the strong rand, a reduced skills base and logistics issues. Foremost amongst these is the current material cost of manufacturing. |
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