“Earlier this year we signed an agreement with Hüttenes-Albertus (HA) to distribute and supply HA foundry technology and products throughout the sub-Saharan region. With this collaboration DZanetech reinforces its position in the sub-Saharan foundry market and will in turn bring some new Hüttenes-Albertus products to the market, sleeves and special sands among them,” said Jacques Swanepoel, National Sales Manager for DZanetech.
“However, the foundry industry is facing major challenges due to the transformation of the automotive industry, rising energy and raw material costs, and general supply shortages that are also affecting other industrial sectors. Strongly increased raw material prices and supply bottlenecks worldwide are posing immense challenges to companies and suppliers in the foundry industry. And there is no light at the end of the tunnel,” continued Swanepoel.
“Thomas Pfeiffer, Member of the Executive Board, Vice President Global Sourcing HA Group, recently explained the special strategies HA implements to remain constantly able to deliver even in times of crisis and the role played by dependence on raw material procurement from China. He explains how HA is dealing with the current bottlenecks on the raw materials market and which particular strategy makes it possible for them to remain able to deliver, even in times of crisis.”
The foundry industry is facing major challenges due to the transformation of the automotive industry, rising energy and raw material costs, and general supply shortages that are also affecting other industrial sectors
Strongly increased raw material prices and supply bottlenecks worldwide are posing immense challenges to companies and suppliers in the foundry industry
“He said in his article, that was published in the German Bundesverband der Deutschen Gießerei-Industrie (BDG) Report, that the core topics of resilience, sustainability, digitalisation and processes play a decisive role for the future. HA has defined each of the topics in more detail for the international teams and derived pragmatic principles for action from them.”
How are suppliers strategically dealing with the raw material crisis?
“As in 2020, 2021 was significantly impacted by the effects of the Corona crisis. In Q3 2021, an unprecedented combination of events was added to the already tense situation and continues to do so:
Highly volatile demand makes planning difficult
There is a shortage of personnel at suppliers and logistics partners
Special events such as the UK leaving the EU or the blockade of the Suez Canal and the war in the Ukraine further exacerbate the situation
The force majeure reports are multiplying
“He continued by saying that companies face single or multiple challenges of this kind every now and then, but the fact that all of these events and effects occur simultaneously worldwide has never happened before. Such a “perfect storm” is unprecedented and there is no all-clear for 2022 either.”
“He also said that the effects of the chip shortage continue, the energy cost changes need to be assessed, and the consistent measures in China to reduce energy and emissions are becoming increasingly visible. Now more than ever, the right strategy for the crisis is decisive.”
The key: A global network
“He explained that the purchasing network of the global HA companies communicates regularly via digital media so that product market information can be exchanged transparently on an international basis. With knowledge of the processes and changes in the various countries, the HA companies worldwide are able to react quickly even in times of bottlenecks and to help each other immediately, thus remaining able to deliver. HA Purchasing works closely networked, worldwide and along the complete process chain. This enables us to continue to deliver reliably.”
The role of China
“The procurement market of China is an indispensable core element of the procurement markets of all industries, whether as a direct supplier or as a supplier of our own suppliers. In order to be able to plan better and be prepared for anything, HA incorporates the plans of the Chinese government into its own strategies. The motto is ‘hope for the best and plan for the worst’.”
“HA’s strategy is to have supply chains from at least two continents. But that alone will not be enough given the current and upcoming situation. At the same time, it is always important to communicate closely with customers to have alternative solutions free tested as a precaution.”
“Even and especially in times when a face-to-face meeting is not possible, transparent communication plays a key role. HA’s purchasing department regularly communicates digitally and directly with its own suppliers in China and worldwide. Intercultural communication and understanding the situation of the different stakeholders is therefore one of the core competencies of a good purchaser.”
The issues of the future
“But the raw materials situation in China is not the only factor of uncertainty for today and tomorrow. In addition to the standard tasks of purchasing, HA has defined each of the three topics in more detail for the international teams and derived pragmatic principles of action from them to serve as a guideline.”
Continuous Improvement Process
“He went on to say that HA also practices the principle of CIP (Continuous Improvement Process). CIP is all about constantly improving and optimising processes. CIP has played an important role at HA for a long time and is an integral part of HA’s corporate culture.”
“Earlier this year we signed an agreement with Hüttenes-Albertus (HA) to distribute and supply HA foundry technology and products throughout the sub-Saharan region. With this collaboration DZanetech reinforces its position in the sub-Saharan foundry market and will in turn bring some new Hüttenes-Albertus products to the market, sleeves and special sands among them,” said Jacques Swanepoel, National Sales Manager for DZanetech
Hüttenes-Albertus also practices the principle of CIP (Continuous Improvement Process). CIP is all about constantly improving and optimising processes. CIP has played an important role at Hüttenes-Albertus for a long time and is an integral part of Hüttenes-Albertus’ corporate culture
“Pfeiffer said HA colleagues work in their teams on continuous improvements in their areas and their working environment. HA encourages the CIP suggestions of our employees and thanks to the imaginative ideas of our teams, many CIP projects at all our sites have already successfully helped to reduce emissions, save costs and make processes even more efficient in recent years.”
“At our plant in Braunschweig, Germany, for example, significant energy savings have been achieved through the smart use of waste heat, among other things.”
“We identified Hüttenes-Albertus as an ideal technology partner for our business and we’re excited to be collaborating with them on bringing the HA brand into Africa and our neighbouring countries. This partnership is a solid counterpoint to our existing supply and distribution agreements,” said Swanepoel.
For further details contact DZanetech on 079 514 6885 (Jacques Swanepoel), Cape Town 083 454 5465 (Johan Jooste), 083 274 1657 (Koketso Mamogale) or 066 010 0999 (Zaid Syed) or visit www.dzanetech.co.za
