“The National Foundry Technology Network (NFTN) has adopted the strategic approach in facilitating alignment between OEMs with appropriate casting suppliers with the aim to address market access challenges many local foundries are struggling with,” said Isidore Kilongozi, Senior Project Manager at NFTN.
“In 2016 a local aluminium casting foundry, with a mix of 80% sand casting and 20% gravity die casting, that manufactures mainly manifold and fan blade castings from various grades of aluminium material specification, was faced with a directive of Section 24G from the Gauteng Department of Agriculture and Rural Development (GDARD), whereby the business was threatened with closure due to the unlawful commencement of the business without obtaining the approval of the relevant environmental requirements,” continued Kilongozi.
“The directive does allow a person or entity to apply for retrospective environmental authorisation for activities that were started without the required prior environmental authorisation (a process known as Environmental Impact Assessment or EIA). The GDARD is the competent authority responsible for processing these applications in the Gauteng province.”
“To prevent liquidation and subsequent job losses, management of the foundry at that time decided to sell the controlling shares to the previously disadvantaged shareholders.”
“The foundry owners then approached the NFTN for support during the transition. A strategic plan, which incorporates all the necessary attributes to ensure increased production and pollution control, was developed for the way forward. These included strategies to grow the company significantly as well as implementing modifications to the plant layout and capital equipment modernisation necessary for pollution control and environmental compliance. Other essential needs such as a sand reclamation plant to minimise sand dumping were recommended,” said Kilongozi.
“The NFTN successfully initiated a series of interventions at the foundry that included the facilitation of the SG24 application, the implementation of the lean manufacturing process layout and the fulfilling and certification of the Quality Management System so as to allow easier market access. These interventions resulted in stabilising the foundry and thus ensuring its survival and then positioning the business for localisation opportunities,” added Kilongozi.
“As a result of the introduction of these interventions, the foundry has seen positive changes and is now approved by a leading OEM manufacturer of industrial fans locally to supply the aluminium fan blade castings that are then fabricated into a turnkey industrial fan system. These turnkey industrial fan systems are used by big corporate companies such as SASOL, ESKOM and Simunye Energy, as well as other companies operating in the mining sector and food processing industry.”
“The exclusive contract signed between the two parties for the next three years for the supply of the aluminium fan blade castings ensures market access security and secures more than twenty direct jobs.”
“The firm has also seized the opportunity to improve its position in the market place by investing in a sand reclamation plant to the value of R1 400 000.00. The impact achieved is a showcase of the NFTN contribution towards improving foundries’ competitiveness and growing the local economy,” concluded Kilongozi.
For further details visit www.nftn.co.za
