May Coverage Report

PRINTTop Performing Companies,01 May 2016s p.63

Business Report (Sunday Independent), 01 May 2016, p.1

Business Report (Sunday Tribune),1 May 2016, p.8

Business Report (Sunday Weekend Argus),1 May 2016,p.1

Business Report (Cape Times)05 May 2016, p.15

Business Report (Mercury), 05 November 2016, p.13

ONLINE

Iol Business Report-Iol.co.za/businessTon Scrap fined after price-fixing admissionA.V.E: R40,61105 May 2016Article link:http://www.iol.co.za/business/companies/ton-scrap-fined-after-price-fixing-admission-2017577

Scrap metal dealer, Ton Scrap, has been fined R3.5 million after admitting to contravening the Competition Act by agreeing with its competitors to fix purchasing prices of certain ferrous scrap metals and to allocate suppliers among the large scrap metal merchants.The Competition Tribunal yesterday confirmed a settlement agreement reached between Ton Scrap, which now trades as Nieuwco, and the Competition Commission in terms of which the firm would pay the fine, which amounts to 5 percent of its annual turnover for ferrous scrap metal for the financial year to February 2005.The commission’s Korkoi Ayayee told the tribunal hearing that the commission had initiated a complaint in August 2006 against the Reclamation Group, SA Metal & Machinery Company (SAM), National Scrap Metal and Cape Town Iron and Steel Works.Ayayee said the scope of this investigation was expanded and the commission conducted search and seizure operations at the premises of the Reclamation Group in Johannesburg, Port Elizabeth and Durban in July 2007.The commission subsequently received information that the Reclamation Group, Abeddac Metals, Amalgamated Metals, Ben Jacobs Metals, Power Metals, SAM and Universal Recycling (URC) were engaged in price-fixing and collusive tendering in regard to various types of non-ferrous scrap metals.

It then initiated a second complaint in August 2007 after it established certain firms were likely to be involved in specific contraventions of the Competition Act that were not identified at the time of the initiation of the first complaint.InvestigationAyayee said the investigation revealed there were other arrangements between scrap merchants, including the Reclamation Group, Ton Scrap, URC, Ben Jacobs Iron and Steel and Rand Scrap, and steel mills, such as ArcelorMittal SA, Scaw SA, Columbus Stainless, Highveld Steel & Vanadium and Cape Gate, that could be in contravention of the act.The commission’s investigation found that prior to the Competition Act coming into effect until early 2008, Ton Scrap, together with other large scrap merchants and large scrap consumers in the inland area, were involved in discussions, meetings and arrangements. During these events they decided the setting of a standard pricing formula to determine the selling price of scrap metal, the premium charged by the large scrap merchants for scrap metal and the collective sourcing or supply of scrap metal by the large scrap consumers and the allocation of scrap metal among them.Ayayee added that in these meetings, the large scrap merchants would reach an understanding that their market shares and margins would be kept constant, the specific scrap generators were allocated to specific large scrap merchants, and the large scrap merchants also agreed not to poach one another’s suppliers and scrap generators.

She confirmed that with the exception of Ben Jacobs Iron and Steel, the 12 other firms had engaged in this conduct, and had concluded settlement agreements with the commission and were fined between 5 percent and 6 percent of their annual turnover.

Iol.co.za/business - Iol Business ReportAmsa’s Saldanha Works viable owing to higher steel pricesA.V.E: R44,69509 May 2016Articlelink:http://www.iol.co.za/business/companies/amsas-saldanha-works-viable-owing-to-higher-steel-prices-2019024

ArcelorMittal South Africa’s (Amsa) Saldanha Works plant in the Western Cape was viable owing to higher international steel prices, Africa’s biggest steelmaker said as it posted higher sales in the quarter to March.“At this stage, and based on the current prices (and the increase in international prices), the Saldanha Works remains viable,” Amsa said on Friday.Read: Amsa sees boost from higher steel pricesSaldanha was in the spotlight after it booked an impairment of R3.57 billion last year due to poor international steel export prices and the high local electricity tariffs in February.The unit’s future was under review, and the company said the review had been completed. “In the long term, Saldanha Works needs alternative energy solutions, such as access to affordable electricity, which is vital to ensure its long-term sustainability,” Amsa said.Amsa indicated that it was at an advanced stage of exploring various different options for an independent gas-to-power producer in Saldanha.

The project relied strongly on government support for importing liquefied natural gas and other regulatory approvals.Amsa said following the recent increases in international steel prices and its subsequent steel price increases, it anticipated that overall liquidity would normalise to acceptable levels.“Based on where prices are, the bulk of our products are cash-flow generative,” Amsa’s acting chief executive Dean Subramanian said.“Even so, cheap Chinese supplies that are hurting steelmakers around the world will ensure market conditions remain difficult,” he added.

Amsa has been trading in murky waters and has not posted an annual profit since 2010 as a result of the flood of cheap Chinese imports at prices that are far below local production costs.The company said it wanted the government to buy local steel, and increase both tariffs and anti-dumping duties to make its business more viable as the industry remained on its knees, with competitor Evraz Highveld Steel and Vanadium under business rescue and about 2 000 employees retrenched, while Scaw Metals has also shed about 1 000 jobs.

“While progress has been made, it is still the case that without the requisite safeguards as applied for, and without the initiatives committed by the government regarding the use of local steel for government infrastructure projects, the steel industry and the company remain vulnerable,” Amsa said. They “will need to undertake significant structural change should international prices remain volatile on the back of cheap Chinese steel being dumped globally”.Amsa’s total steel sales volumes rose 3.1 percent to 1.1 million tons in the first quarter from a year earlier.However, production fell 9 percent in the quarter to March amid a combination of operational issues and the tough operating environment.Liquid steel production was 122 000 tons, and 9 percent lower compared with the same quarter last year.Liquid steel production was hit in the latter part of the December quarter last year when only one blast furnace was operational in Vanderbijlpark.“The subsequent restart and ramp-up of the blast furnace during January... compounded by negative market conditions, operational requirements and the closure of the Vaal Melt Shop at the end of 2015 contributed to the lower production,” Amsa said.Shares dropped 1.67 percent on Friday to close at R8.85.

Seifsa.co.za - SEIFSAHIGH-PROFILE SPEAKERS TO ADDRESS DELEGATES ATTENDING 2ND ANNUAL SOUTHERN AFRICAN METALS AND ENGINEERING INDABAA.V.E: R19 59319 May 2016Articlelink:http://www.mineweb.com/news/companies/arcelormittal-sa-to-sell-more-stock-than-its-worth/

The National Union of Metalworkers of South Africa (Numsa) on Tuesday called on the National Treasury to investigate noncompliance with the Preferential Procurement Policy Framework Act and its local content regulation as part of its list of demands ahead of its anticorruption march, in Johannesburg, on October 14. It also requested that the Treasury take steps against organs of State –national, provincial and local entities, as well as State-owned companies – that were not complying with the regulations. Further, Numsa demanded

that government “dump its failed policies”, such as the Growth, Employment and Redistribution plan and the National Development Plan, as these were “directly responsible” for creating and deepening corruption and mass poverty and unemployment. Speaking at the Numsa head office, in Johannesburg, Numsa secretary-general Irvin Jim said the union would also be making demands on behalf of workers and working class communities, such as that the South African Revenue Services, the South African Reserve Bank and the Finance Intelligence Centre investigate the issue of illicit financial flows, transfer pricing and money laundering in the country and take strong steps to deal with these issues.

These entities should also probe the effect of corruption on the delivery of socioeconomic services, such as the provision of adequate housing, basic education, healthcare services, water, social welfare and basic nutrition for children, besides other matters. He added that the governing party sold its dream for a racism-free, equal and just society for a neoliberal capital society, “complete with corruption that comes with that package”.nationalise the steel industry Meanwhile, Jim said Numsa demanded that government “move with speed” to nationalise key companies

and minerals, placing these under worker control. This included companies such as ArcelorMittal South Africa, Evraz Highveld Steel & Vanadium and Scaw Metals, as well as the entire value chain of coal, manganese, iron-ore and chrome, as profits from these sectors were exiting South Africa. “Prices for local buyers also remain too high. We need an effective local price for platinum to save the current capability of manufacturing to champion beneficiation to create jobs. “It is time to end systemic corruption in our society and after we march in central Johannesburg, the bigcorporationsandcorporationsandforeignbanksthataredoingsomuch damageinSandtoncanexpectavisit,”Jimwarned.

Engineeringnews.co.za - Engineering NewsImminent lack of coarse ash will change cement brick industryA.V.E: R34,07220 May 2016Articlelink:http://www.engineeringnews.co.za/article/imminent-lack-of-coarse-ash-will-change-cement-brick-industry-2016-05-20/rep_id:4136

Cement stock brick manufacturer Brick-It director Sean Cameron predicts that the upcoming shortage of coarse ash – which is combined with cement and other aggregates before being moulded into cement bricks – will force the industry to change the bricks’ composition, subsequently affecting many facets of production. Cameron expects that this shortage will manifest in the next three years, owing to increased demand for cement bricks. “Clay bricks cost more to manufacture. They have to dry for a few days, bake in a kiln and cool before they can be packaged. That entire process can take up to two weeks. Aside from the excessive power costs, it’s also less environment-friendly. Cement bricks are far more viable and cost-effective to produce.” Producers use coarse ash in the brickmaking process, owing to its low weight, which cuts production and transportation costs. “The alternative is to use crusher run as an ash substitute, but this is a lot more expensive. Crusher run is also heavier. Thus, instead of loading 12 000 bricks on a truck, we might be able to load only 10 000, which also has a cost implication.”

If Brick-It were to run a mix using crusher run in its block machine, it would probably produce 13 pallets, owing to the low weight of the ash, whereas virgin crusher run would reduce this to only nine pallets. “We would be forced to use more virgin raw material to produce the same number of bricks, pushing production costs through the roof.” In addition to coarse ash, the company also uses slag cement from steel manufacturer Scaw Metals, as well as pozzolanic ash, or fly ash, from various power stations. Cameron reiterates that “the coarse ash is where the problem lies. Eventually, it is going to run out”. Although fly-ash products supplier Ash Resources also has a coarse ash stockpile, he believes that “there is probably two to three years’ worth of ash left, based on the rate that it is selling”. Brick-It has its own coarse ash stockpile in Gauteng. Cameron notes that there is about a year’s supply of coarse ash left here. He adds that when producers are forced to use crusher run, “it is going to change the whole market. This is partly why we want to try to diversify into pavers” . Therefore, Brick-It is procuring a large-capacity RE1400 block machine from concrete equipment supplier Pan Mixers South Africa (PMSA) to use material from a nearby quarry to make pavers. The company has also ordered another PMSA VB4X block machine to replace the original machine, acquired in 2006. Cameron says this and other upgrades are meant to increase Brick-It’s on-site capacity and to aid automation. The company introduced a new curing chamber at its main plant last year and plans to refurbish the original VB4X and move its second production site in Benoni to Kempton Park to boost its overall production capacity. “We started on the civil works for the new RE1400 at the end of last month, which will also feature a curing system. The RE1400 will produce pavers exclusively.” Cameron notes that, depending on the market and raw material availability, the company might move the other VB4X onto pavers as well. “Of course, we are getting into a new market, so it is going to take time to create momentum.” Brick-It will focus on residential pavers initially, starting with existing customers, before moving onto other prospects, Cameron says. The VB4X has a pallet size of 1 400 mm × 840 mm × 42 mm. It can produce up to 120 000 standard-sized bricks or 75 600 interlocking pavers in a nine-hour shift. The RE1400 has a pallet size of 1 400 mm × 950 mm × 50 mm, and can produce up to 165 000 standard-sized bricks or 105 600 interlocking pavers in a nine-hour shift. Cameron says about 150 000 bricks a day are produced on the new VB4X, using about 200 000 t of raw materials. He adds that the PMSA equipment has enabled the company to increase production, specifically as it has reduced downtime. “PMSA is very good; the availability of its technicians is largely why we chose them, just from the service point of view.” Brick-It was established in 2006 and has four processing plants – three at its main site, in Kempton Park, and one in Benoni. The Kempton Park site comprises

about 5 ha, and will eventually include the new RE1400 and curing system. The company mainly supplies residential housing developers and large-scale construction retailers, such as Cashbuild and BuildIt, as well as other developers and one-off buyers. The company produces about 12-million bricks a month. “We are quite lucky. We hear that the market is down in terms of the current economic climate. However, we are fortunate that our sales are strong. We are probably pushing out about 55 truckloads of bricks a day,” comments Cameron

Ee.co.za - EE PublishersNew training manager at Cape Town Training CentreA.V.E: R5,84623 May 2016Article link: http://www.ee.co.za/article/new-training-manager-eca-cape-town-training-centre-helm.html

We welcome George Senekal as the newly-appointed training manager of the ECA Cape Town Training Centre with effect from 1 May 2016.George started his career in the electrical industry as an apprentice at Scaw Metals in Germiston in 1986 and, after qualifying as an electrician, worked at Iscor Vanderbijlpark where he obtained his Installation Electrician qualification.In 1994, George took up a position as lecturer at the Vereeniging Technical College, and later obtained his National Diploma in Electrical Heavy Current.In April 2009 George was employed as training officer at the ECA Highveld training centre in Johannesburg and, later, assumed the position of training manager. He also subsequently obtained his Master Installation Electrician qualification.“I now consider myself a Capetonian and I look forward to continue parting knowledge to our trainees and skill them to the best of their ability” says George.Pierre Foot, ECA regional director, Western Cape

Miningweekly.com - Mining Weekly‘Steel committee’ to be set up to monitor AMSA’s ‘fair pricing’ pledgeA.V.E: R26,90326 May 2016Article link: http://www.miningweekly.com/article/steel-committee-to-be-set-up-to-monitor-amsas-fair-pricing-pledge-2016-05-26

The committee was being formed against growing criticism – led by some steel-intensive firms, but also voiced by the opposition Democratic Alliance (DA) – about several recent steel price hikes, which had followed in the wake of the institution of protection on steel products. AMSA had applied for, and received, protection across ten product categories, with 10% duties already applying on

eight of those categories. In addition, it had applied to the International Trade Administration Commission of South Africa for safeguard duties on several products, including hot-rolled coil, which made up a large portion of current imports. It had subsequently announced four price increases since the start of the year, which had led DA deputy shadow minister for trade and industry Dean Macpherson to argued that government was allowing AMSA to renege on its deal with government regarding pricing. Speaking at the Metals and Engineering Indaba in Johannesburg on Thursday, Macpherson argued that AMSA had received the protection on the basis of a commitment that it would not raise domestic steel prices – a promise it had since broken. Strachan said he was unaware of any agreement, noting that government and AMSA were yet to conclude their negotiations on the pricing formula. “Part of the function of the steel committee is to ensure that, with AMSA, we reach agreement on pricing . . . [and] that we don’t return to import parity pricing. That is, in a nutshell, the deal that we have to strike.” AMSA acting CEO Dean Subramanian added that the company had never promised not to raise prices, but had instead committed not to factor in protection when making price adjustments. He indicated that, under the proposed regulated model, domestic prices would be based on selling prices in a range of other countries with the basket comprising countries in Europe (50%), Asia (30%) and North America (20%). AMSA was already pricing its flat steel using the model, despite having not formally reached agreement with government on the basket. The company was also keen for locally produced steel to be “designated” for procurement by State-owned companies and departments, and for the current deeming of foreign steel and “local” to be reversed. Strachan said government was ready to remove the current “deeming” of foreign steel, a strategy that was pursued as a result of government unhappiness with AMSA’s persistent use of import parity pricing to set domestic prices. “In future, all designations will stipulate that only steel produced in South Africa will be considered to be local.” The DTI was also preparing to designate further steel-intensive products for local procurement in addition to the 15 that had already been designated under the Preferential Procurement Policy Framework Act. “We’ve got to raise aggregate demand for steel,” Strachan said, noting that many other countries were pursuing ‘buy local’ strategies to protect their steel industries in the face of the global glut. AMSA estimated global overcapacity to be 240-million tons and warned that it would take time before China reduced its capacity, despite large losses by that country’s steelmakers. However, Scaw Metals CEO Markus Hannemann urged government to go even further and designate all products to local procurement, unless it could be shown that such products cannot be produced locally. He added that the private sector should also embrace local procurement, lamenting the rising levels of importation, with companies seemingly “oblivious” to what is available locally.

Engineeringnews.co.za - Engineering News‘Steel committee’ to be set up to monitor AMSA’s ‘fair pricing’ pledgeA.V.E: R27,68626 MAY 2016Article link: http://www.engineeringnews.co.za/article/steel-committee-to-be-set-up-to-monitor-amsas-fair-pricing-pledge-2016-05-26

rnment would, within weeks, finalise a “fair pricing” agreement with steel producer ArcelorMittal South Africa (AMSA) and establish a “steel committee” to monitor implementation of the formula, which would be based on a basket of selling prices in Europe, Asia and North America. Department of Trade and Industry deputy director-general for industrial policy Garth Strachan said the

committee would comprise government officials as well as industry experts and, besides pricing, would also monitor the “other reciprocal conditions” agreed to by AMSA in return for protection. These related to investment, production, maintenance and employment. The committee was being formed against growing criticism – led by some steel-intensive firms, but also voiced by the opposition Democratic Alliance (DA) – about several recent steel price hikes, which had followed in the wake of the institution of protection on steel products. AMSA had applied for, and received, protection across ten product categories, with 10% duties already applying on eight of those categories. In addition, it had applied to the International Trade Administration Commission of South Africa for safeguard duties on several products, including hot-rolled coil, which made up a large portion of current imports. It had subsequently announced four price increases since the start of the year, which had led DA deputy shadow minister for trade and industry Dean Macpherson to argued that government was allowing AMSA to renege on its deal with government regarding pricing. Speaking at the Metals and Engineering Indaba in Johannesburg on Thursday, Macpherson argued that AMSA had received the protection on the basis of a commitment that it would not raise domestic steel prices – a promise it had since broken. Strachan said he was unaware of any agreement, noting that government and AMSA were yet to conclude their negotiations on the pricing formula. “Part of the function of the steel committee is to ensure that, with AMSA, we reach agreement on pricing . . . [and] that we don’t return to import parity pricing. That is, in a nutshell, the deal that we have to strike.” AMSA acting CEO Dean Subramanian added that the company had never promised not to raise prices, but had instead committed not to factor in protection when making price adjustments. He indicated that, under the proposed regulated model, domestic prices would be based on selling prices in a range of other countries with the basket comprising countries in Europe (50%), Asia (30%) and North America (20%). AMSA was already pricing its flat steel using the model, despite having not formally reached agreement with government on the basket.The company was also keen for locally produced steel to be “designated” for procurement by State-owned companies and departments, and for the current deeming of foreign steel and “local” to be reversed. Strachan said government was ready to remove the current “deeming” of foreign steel, a strategy that was pursued as a result of government unhappiness with AMSA’s persistent use of import parity pricing to set domestic prices. “In future, all designations will stipulate that only steel produced in South Africa will be considered to be local.” The DTI was also preparing to designate further steel-intensive products for local procurement in addition to the 15 that had already been designated under the Preferential Procurement Policy Framework Act. “We’ve got to raise aggregate demand for steel,” Strachan said, noting that many other countries were pursuing ‘buy local’ strategies to protect their steel industries in the face of the global glut. AMSA estimated global overcapacity to be 240-million tons and warned that it would take time before China reduced its capacity, despite large losses by that country’s steelmakers. However, Scaw Metals CEO Markus Hannemann urged government to go even further and designate all products to local procurement, unless it could be shown that such products cannot be produced locally. He added that the private sector should also embrace local procurement, lamenting the rising levels of importation, with companies seemingly “oblivious” to what is available locally. Polity.org.za - Polity‘Steel committee’ to be set up to monitor AMSA’s ‘fair pricing’ pledgeA.V.E: R29,41926 May 2016

Article link: http://www.polity.org.za/article/steel-committee-to-be-set-up-to-monitor-amsas-fair-pricing-pledge-2016-05-26

Government would, within weeks, finalise a “fair pricing” agreement with steel producer ArcelorMittal South Africa (AMSA) and establish a “steel committee” to monitor implementation of the formula, which would be based on a basket of selling prices in Europe, Asia and North America. Department of Trade and Industry deputy director-general for industrial policy Garth Strachan said the committee would comprise government officials as well as industry experts and, besides pricing, would also monitor the “other reciprocal conditions” agreed to by AMSA in return for protection. These related to investment, production, maintenance and employment. The committee was being formed against growing criticism – led by some steel-intensive firms, but also voiced by the opposition Democratic Alliance (DA) – about several recent steel price hikes, which had followed in the wake of the institution of protection on steel products. AMSA had applied for, and received, protection across ten product categories, with 10% duties already applying on eight of those categories. In addition, it had applied to the International Trade Administration Commission of South Africa for safeguard duties on several products, including hot-rolled coil, which made up a large portion of current imports. It had subsequently announced four price increases since the start of the year, which had led DA deputy shadow minister for trade and industry Dean Macpherson to argued that government was allowing AMSA to renege on its deal with government regarding pricing. Speaking at the Metals and Engineering Indaba in Johannesburg on Thursday, Macpherson argued that AMSA had received the protection on the basis of a commitment that it would not raise domestic steel prices – a promise it had since broken. Strachan said he was unaware of any agreement, noting that government and AMSA were yet to conclude their negotiations on the pricing formula. “Part of the function of the steel committee is to ensure that, with AMSA, we reach agreement on pricing . . . [and] that we don’t return to import parity pricing. That is, in a nutshell, the deal that we have to strike.” AMSA acting CEO Dean Subramanian added that the company had never promised not to raise prices, but had instead committed not to factor in protection when making price adjustments. He indicated that, under the proposed regulated model, domestic prices would be based on selling prices in a range of other countries with the basket comprising countries in Europe (50%), Asia (30%) and North America (20%). AMSA was already pricing its flat steel using the model, despite having not formally reached agreement with government on the basket. The company was also keen for locally produced steel to be “designated” for procurement by State-owned companies and departments, and for the current deeming of foreign steel and “local” to be reversed. Strachan said government was ready to remove the current “deeming” of foreign steel, a strategy that was pursued as a result of government unhappiness with AMSA’s persistent use of import parity pricing to set domestic prices. “In future, all designations will stipulate that only steel produced in South Africa will be considered to be local.” The DTI was also preparing to designate further steel-intensive products for local procurement in addition to the 15 that had already been designated under the Preferential Procurement Policy Framework Act. “We’ve got to raise aggregate demand for steel,” Strachan said, noting that many other countries were pursuing ‘buy local’ strategies to protect their steel industries in the face of the global glut. AMSA estimated global overcapacity to be 240-million tons and warned that it would take time before China reduced its capacity, despite large losses by that country’s steelmakers. However, Scaw Metals CEO Markus Hannemann urged government to go even further and designate

all products to local procurement, unless it could be shown that such products cannot be produced locally. He added that the private sector should also embrace local procurement, lamenting the rising levels of importation, with companies seemingly “oblivious” to what is available locally.

Seifsa.co.za - SEIFSAGOVERNMENT TO INTENSIFY INTERVENTIONS AIMED AT SUPPORTING STEEL SECTORAVE: R23 34827 May 2016Article link:http://beta.iol.co.za/business/companies/arcelormittal-shares-plunge-1942437

Johannesburg - ArcelorMittal South Africa (Amsa) shares on Friday tumbled to a 14-year low after the company announced plans to embark on a rights issue.The company would use the rights offer to reduce debt and invest in plants as the continent’s biggest steelmaker said its 2015 loss would be 11 times bigger than that of last year.

The steel producer’s stock fell as much as 14.92 percent before closing 8.16 percent lower on Friday at R7.20, which valued the company at R3.2 billion.Paul O’Flaherty, the chief executive of Amsa, said on Friday that the group was expecting to report a bloodbath in the year to December. But he said there was a glimmer of hope following measures to turn the tide of losses.

To boost its financial position, Amsa will call on shareholders to support a R4.5bn rights issue to help keep the company afloat.Shareholders will be asked to vote on December 11 on the rights offer, which is scheduled for January. The offer will help the company restructure its balance sheet, cut down on debt and inject capital expenditure.

ArcelorMittal, which holds 46.8 percent of the company, would fully underwrite the offer, the local unit said in a statement on Friday.It owes the parent R3.2bn in loans and the fundraising exceeds the company’s current market value.

Amsa’s financial troubles are being exacerbated by cheap Chinese imports, low metal prices and South Africa’s subdued economic growth outlook, which has led to a dwindling demand for steel.The glimmer of hope includes the amendment of its 6.25 million ton annual offtake agreement with Kumba Iron Ore from a cost-based price to an export parity price, and the government’s decision to implement a 10 percent steel import tariff.

The initiative comes at a time when Amsa’s competitor, Evraz Highveld Steel and Vanadium, is in business rescue. Highveld and Scaw Metal Group have announced plans to cut a total of more than 2 400 jobs.

“A 10 percent tariff is not enough. China is an unfair trader. We are working with International Trade Administration Commission of South Africa (Itac) to safeguard the industry in cases were 10 percent is not enough,” he said.The company was not out of the woods and was putting its hopes on the government introducing anti-dumping steel duties by March, O’Flaherty said.

“Anti-dumping duties under discussion are receiving support from the government,” he said, noting that 60 other countries had instituted anti-dumping measures to protect their industries. “We have enough information to convince Itac that we need this and why we need this.”

A fighting chance

Stephen Meintjes, an analyst at Momentum SP Reid Securities, said he believed that Amsa had a fighting chance.“The company has no alternative other than to proceed with the rights offer,” Meintjes said. “All these measures by management will help put the company in a favourable position, which gives it a realistic chance of turning around.”Amsa said it was in talks with a number of short-listed empowerment investment partners as part of a bid for the company to meet the government’s 26 percent empowerment target.It said about 283 jobs were on the line with the closure of the Vaal Meltshop and Forge in its Vereeniging Works.

The company’s financial results would be bleak and it expected that a loss per share and headline loss per share for the year to December would be 1 100 percent more than the previous period.A pre-tax adjustment of R1.53bn was expected owing to Kumba’s decision to close its Thabazimbi mine, it said, adding that the closure would result in a R350 million retrenchment cost, and R233m write-down of iron ore inventory at the mine.

Castingssa.com - Castings S.ACelebrating the life of Glen TillettAVE: R31,45027 May 2016Article link: http://castingssa.com/celebrating-the-life-of-glen-tillett/

It is with regret and great sadness that we learned of the sudden passing of Glen Tillett last month. Glen succumbed to injuries he sustained after a freak accident at home.“Glen was so looking forward to enjoying some travelling and relaxation in the coming months as he was beginning to wind down to retirement,” said Glen’s business partner and son-in-law Allan Bruggeman.“But sadly it was not to be. He would have turned 74 on the 22nd of May. After spending many years of his working career in the foundry industry, his retirement would have been richly deserved, although his life-work ethos was ‘The day I die, is the day I retire’.”

Glen was the first of five children (his younger brother Mike’s twin was to die during childbirth) born to Cyril and Antoinette Tillett in Pietermaritzburg, KwaZulu Natal. They decided to name their first born Anthony Glen Tillett, having the honour of being named after his mother Antoinette. It was a name that he was taunted with during his childhood, and soon discarded! And because his mother’s nickname was Tony, he opted to use his second name Glen, which is the name we are all familiar with.On the death of his grandfather, Frederick, Glen’s father used his inheritance money to purchase a farm in Northern Rhodesia (now known as Zambia). As a young boy on the remote farm, Glen developed a deep love for the bushveld and wild animals, where he would spend days in the bush

sleeping beneath the stars. In an attempt to turn this colonial ruffian into a gentleman, he was sent to Kingswood College, a boarding school in Grahamstown, Eastern Cape.

However, a three-day train trip with fellow Kingswoodians allowed for much adventure and mischief. And it was at Kingswood College that Glen founded the extramural society that the Headmaster named the “Guinea Fowl Gang”, because whenever the headmaster would take his dog for a walk on a Sunday afternoon up Sugarloaf, a small sandstone koppie behind the school, he would witness the college boys scurrying in all directions, keeping low to the ground trying their best to not be identified and thus avoid receiving six of the best for smoking. It would be another 20 years before Glen kicked the habit, only to become a vociferous anti-smoking evangelist.“It was in Northern Rhodesia on the 25th April 1964 that Glen married the love of his life and his soul mate, our mother Cynthia. Their devotion to each other for 52 glorious years together has been an inspiration to us, their children and has taught us much about unconditional love and selflessness. Their first three children, Marlene, Brian and I were born in Kitwe, Zambia,” said Malcolm Tillett, Glen’s third born, while delivering the Eulogy for his father at Glen’s Memorial Service.The nationalisation of the mines in Zambia meant the family moved to Salisbury in Rhodesia (now known as Zimbabwe) where their fourth child, Natasha was born. Prior to moving to Salisbury Glen had worked with Scaw Metals and Rio Tinto in Zambia.This proved to be a turbulent period for Glen and his family as it was the time of the Rhodesian Bush War. Glen was called up to serve as a Lieutenant in the Rhodesian Army, having done his national service in the Rhodesia and Nyasaland Federation with the Royal Rhodesian Regiment.“This was the time of six weeks in and six weeks out of the military, petrol coupons and rationing. The running of the household and raising of the family fell fully onto my mother’s shoulders. However, there was much joy as my father came home for weekend passes in a camouflaged Land Rover – with doors removed! He would reminisce later with me on the difficult terrain they would have to pass through in the Landies, and how much admiration he had for the vehicle. Later on in life Dad would rebuild Land Rovers as a hobby. Other hobbies of Dad’s included breeding and selling tropical fish,” said Malcolm Tillett.

“Not too long after Zimbabwean independence, the shadow of gloom and retribution began to stretch across the country. The family departed for South Africa and ended up back in KwaZulu Natal.”After a brief stint selling foundry products for Foseco, Glen joined HA Falchem, also selling foundry products, with whom he stayed with for 18 years.From hobby to full time businessThe need by a pump manufacturer to get castings out quicker and ultimately the final product delivered to the client in a shorter time, led Glen Tillett and his son-in-law Allan Bruggeman, who had married Glen’s eldest child Marlene, to start their own full production foundry – Matt Cast Supplies – back in September 1999. Both Glen and Allan, who is a metallurgist, had been in the foundry industry for a number of years and had been dabbling very successfully in the manufacture of brass sundials. It was mainly a hobby that Glen had been pursuing.“We were running a small foundry on the weekends to make the sundials. We supply the majority of these to nurseries in the Gauteng area. I had the experience from the manufacturing side and Glen the know how on the supply side so the transition to a bigger, full time foundry was very easy,” said Allan.

“When I say a bigger, full time foundry it is relative.”Matt Cast Supplies started its operations in a small rented factory in Germiston, Gauteng with a total employee compliment of four people, producing four tons of castings per month. Matt Cast was established to manufacture components almost exclusively for the well-known pump manufacturer APE Pumps, but has since diversified into other industrial sectors.Glen and Allan remained as business partners, friends and family until Glen’s untimely passing. During this period the company and foundry achieved many milestones and today employs 42 staff. Keeping it in the family, Glen’s youngest daughter Natasha joined the company in 2001 and her husband, Murray Speed, joined in 2004.Glen was also a loyal member of the South African Institute of Foundrymen, having joined in February 1981.“My Dad could fix almost anything. From cars, washing machines, video cassette recorders, and televisions through to computers and laptops. Put anything in front of him, and he would soon have it figured out. My Dad rebuilt my brother Brian and my two sisters first cars. Mine was rebuilt from two VW Golf I’s that had been written off.”“I, along with my siblings, would describe my Dad as remarkable, amazing, and our superhero. His grandchildren remember him for his gentleness, warmth and encouragement. His friends have told me that he was both a gentle man and a gentleman. And whatever your memories are of Anthony Glen Tillett, hold them tight, for they are precious.”Glen is survived by his wife Cynthia, four children and eight grandchildren. We express our sincere condolences and thank the family for allowing us to use extracts from the eulogy.

Seifsa.co.za - SEIFSASEIFSA AWARD WINNERS MAKE THEIR MARKAVE: R13,74731 May 2016Article link: http://www.seifsa.co.za/66-seifsa-news-press-releases-2015/553-press-release-2016-05-31-seifsa-award-winners-make-their-mark.html

The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) today announced winners of its 2nd Annual Awards for Excellence. The top performing companies were unveiled at a breakfast that took place before the commencement of the second day of the Southern African Metals and Engineering Indaba taking place at the IDC Conference Centre in Sandton.Genrec Engineering, a division of Murray and Roberts, took top honours as it walked away with not only the Artisan of the Year Award, but also the Health and Safety Award of the Year.South Africa’s largest manufacturer of secondary aluminium products, Zimco Aluminium Company, was declared the winner in the Most Innovative Company of the Year category, while Grohe Dawn Watertech scooped the Best Customer Service Award of the Year.The Most Transformed Company of the Year Award went to the Scaw Metals Group, while the Environmental Stewardship Award was scooped by Steloy Castings.Owing to the limited number of entries received for the Best Corporate Social Responsibility Programme of the Year Award, the judges took a unanimous decision not to have a winner for this category.SEIFSA CEO Kaizer Nyatsumba presented the coveted CEO’s Awards. Former SEIFSA Presidents Mr Henk Duys and Mr Ufikile Khumalo jointly received the Outstanding Service to SEIFSA Award, while

the Association of the Year Award went to South African Refrigeration and Air Conditioning Contractors' Association. Voith Turbo was declared winner of the Company of the Year Award.

Mr Nyatsumba said the metals and engineering sector was faced with several challenges, including the prevalence of cheap imports from Asia, the lack of competitiveness in local manufacturing and policy uncertainty.“In such turbulent economic times and a challenging business environment, we believe that it is critically important for those companies which excel at what they do to get the acknowledgement and recognition they deserve,” he stated.He further commended all the companies that had entered the awards and congratulated the winners in the respective categories.“I would like to encourage these companies to continue to work hard towards excelling and providing the sector with examples of excellence. This will inspire other companies to improve their operations so that they can be afforded the opportunity to win at future SEIFSA awards,” he concluded.

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