IRON FOUNDRIES SURVEY Dominic Mitchell March 2013 Presentation content General overview Materials and their costs Power sources and usage Cost structure Training Background The survey was commissioned at the end of 2012 by the National Foundry Technology Network and the SA Institute of ID: 289268
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BRICSIRON FOUNDRIES SURVEY
Dominic Mitchell March 2013Slide2
Presentation contentGeneral overview
Materials and their costsPower sources and usageCost structureTrainingSlide3
BackgroundThe survey was commissioned at the end of 2012 by the National Foundry Technology Network and the SA Institute of
FoundrymenAt last BRICS conference delegates expressed the need to create stronger focus areas for discussion
As iron foundries are significant by output volume, it was agreed to focus on them.Slide4
Survey overview
Conducted in South Africa, Brazil, India, ChinaRussia recently had an extensive benchmarking exercise with UNIDOMain purpose was to pick out trends and set a context for comparisonChallenges related to language, short time frames for cleaning and checking of data, and countries responded with differing degrees of accuracy. Foundries too.Slide5
AcknowledgementsThanks are extended to:
The Brazilian Foundry AssociationUNIDO Russiathe Indian Institute of Foundrymen
The China Foundry Association
The SA Institute of
FoundrymenSlide6
Number of iron foundriesSlide7
OVERALL IRON PRODUCTION (VOLUME IN TONS)Slide8
OVERALL IRON PRODUCTION (VOLUME IN TONS) OF THE 3 LARGEST IRON FOUNDRIES IN THE COUNTRYSlide9
Total number of direct and indirect employeesSlide10
No. of universities offering foundry related degreesSlide11
Jobbing and production ratiosSlide12
Comparative ratios of ironSlide13
Average iron across countriesSlide14
Market sectors servedSlide15
Average age of furnacesSlide16
Market sectors averaged BRICSSlide17
Domestic vs Export marketsSlide18
Import/export ratios BRICS averageSlide19
Average price of alloys/ton Slide20
Scrap Average cost per tonSlide21
Resins: Average cost per tonSlide22
Sand average cost per tonSlide23
Average value of castings per tonSlide24
Government incentivesThis is a complex topic with many layers
Incentives range from export incentives (SA)State/province/local government investment incentives (Brazil)Sub-sector and equipment development plans(China)
Manufacturing and skills development policy (India)Slide25
COST STRUCTURESlide26
Material as a % of production costSlide27
Energy as a % of production costSlide28
Labour as a % of production costsSlide29
Equipment as a % of production costSlide30
Overheads as a % of production costSlide31
Combined cost structure %Slide32
Power source in Iron foundriesSlide33
Power incentives/GOVT SUPPORT
Brazil and India have differing tariffs for different times of the day – trough and crest pricing (peace hours)Brazil has a national cost reduction projectSA has a green energy efficiency fund with a rebate for energy efficient equipment, also differing pricing structure Slide34
Constraints in electricity supply
BRAZIL
INDIA
SOUTH AFRICA
CHINA
Long term supply
Cost
Gap in Supply &
demand
High
power tariff
Supply not regular
Generating capacity (infrastructure) Rapidly increasing costs
Quality and reliability of supply
Power outages in SouthSlide35
Electricity cost per kw/hSlide36
Kw/h used per tonSlide37
Electricity cost per tonSlide38
Days per annum that foundries operateSlide39
Personnel costsThis section of the survey was not completed by many foundries who felt that this was sensitive information
A consequence is also that labour productivity was not possible to calculate.Slide40
Training senior managementSlide41
Training middle managementSlide42
Training MouldersSlide43
Training FettlersSlide44
Main Certification Systems
BRAZIL
INDIA
CHINA
SOUTH AFRICA
ISO 9000
ISO 14000
TS
QS 9000
TS 16949
ISO
ISO9001
ISO14000
TS16949
ISO 9001
TS 16949
VDA 6.1Slide45
THANK YOU