Diversification and increased capacity plans come to fruition.
Just over two years ago Naledi Foundry, the foundry division of the Naledi Inhlanganiso Group, began implementing a plan that had increased capacity, improved quality and diversification as the pillars of its strategic blueprint. In order to achieve this the foundry embarked on a restructuring process that included investment in new equipment as part of an approximate R100 million investment programme in the foundry, formerly known as Guestro Casting and Machining that has origins dating back to 1912.
With most of the new equipment now installed and operating the company’s plan is coming to fruition with a marked influence.
“For a long time the foundry was a dominant market force for the manufacture and supply of SABS approved castings to the OEMs in the automotive industry and others. With a machining operation on site that included the latest state-of-the-art CNC machines available at the time, the company was able to offer completely machined castings, with brake drums as one of the company’s specialities,” said Coenie De Jager, who was appointed General Manager of the foundry in February 2017.
Metal being heated on one of the two new IFM 7 multi-function furnaces with twin-power systems supplied by ABP Induction Systems
“However, the previous owners did not make any investment in the existing equipment, the facilities or in new capital equipment for many years. The whole operation was being run into the ground and losing plenty of money. The staff were not motivated and underperforming, which resulted in more staff being employed. The quality of the castings manufactured was dropping and productivity was at an all time low.”
“When the Naledi Inhlanganiso Group, headed up by Group Executive Chairman Sibusiso Maphatiane, decided to purchase the company in 2013 they knew they would have to invest heavily in all structures of the company, from staffing to processes and equipment.”
The Naledi Inhlanganiso Group is a 100% black owned company. Through a consortium and in partnership with the IDC, they purchased the majority of the shares in the previously JSE listed Dorbyl Ltd of which Guestro Casting and Machining was the last remaining manufacturing operation. In July 2014 the company was formally delisted which triggered a process of capital investment and restructuring in line with the original plans of the consortium.
“Pieter Du Plessis was appointed the Group CEO shortly thereafter and strategic plans were drawn up with an aim to get the foundry back to what it once was – a recognised industry player.”
“The initial focus was to concentrate on upgrading the GF horizontal moulding line with a complete overhaul and refurbishment that would bring it in line with modern casting practices.”
The two new IFM 7 multi-function furnaces with twin-power systems supplied by ABP Induction Systems
The front side of the two new IFM 7 multi-function furnaces that have twin-power systems supplied by ABP Induction Systems
“The mandate had been to increase the melting and moulding capacities in the foundry, which would ultimately lead to a reduction in the price per kilogram of metal cast. The majority of the castings that are manufactured by Naledi Foundry are done on the GF horizontal moulding machine that has been in operation at the company since 1982. Various upgrades to the machine and the original sand mixers and coolers have been implemented over the years, but it still left the GF far short of what it is capable of and should be producing.”
“The line had been servicing 40 to 70 moulding boxes an hour prior to the recent upgrade that included an investment in new auxiliary equipment such as a new Convitec 50 ton per hour return sand cooler, a high speed sand mixer that was complimented with a Multicontroller SMC – a fully automated sand mixer controller.”
“At the same time the company installed an Endeco Omega CB 30 coreshooter that is capable of producing horizontally and vertically split core boxes. The fully automatic 30-litre machine has not been installed to manufacture any specific core but is deployed on demand. It has been automated with an overhead system that runs on a trolley shuttle that is linked to a new two ton an hour Endeco Omega continuous mixer that delivers the sand on demand.”
“Most of this part of the upgrade was completed by the end of 2015.”
“Phase two of the project that began early last year saw the introduction of a new presspour furnace in the GF horizontal moulding machine line. This ABP Induction Systems 11 ton pouring furnace Presspour® type OCC is used for holding and the automated inline pouring of ferrous and other metals when required.”
“The goal was to increase the GF moulding line to produce at least 120 to 140 boxes an hour. However, when I got here the line was only producing 30 boxes an hour, well down on intended targets. This was despite the upgrades on the line that had been completed and the investment in the equipment for the complementing processes.”
The ABP Induction Systems 11 ton pouring furnace Presspour® type OCC is used for holding and the automated inline pouring of ferrous and other metals when required
The floor moulding area at Naledi Foundry is being upgraded. The company has recently installed a Lauds 6 – 12 ton an hour LSA mixer. Naledi plan to take the production in this area from the current three tons per day to at least 16 tons per day
“There were a number of reasons for this including lack of knowledge and experience from management’s perspective. The moulding line did have some upgrades done to the hydraulics and a simplified and enhanced state-of-the-art PLC electrical control was installed. However, you cannot expect a 30-year plus old car to run like the latest model if you do not do a complete overhaul of all the other moving components. As a result we have subsequently installed new motors, belts, rollers and hydraulic packs that have now improved the efficiencies of the flasks and moulding boxes before, during and after the pouring process. You could say we are now close to operating the latest model.”
“Nevertheless, this was not the only operational and procedural process that needed attention in the foundry. Continuing with the company’s improvement and process optimisation policy in the melting and pouring departments, management ordered two IFM 7 multi-function furnaces with twin-power systems from ABP Induction Systems and two Cyrus FC 12 T charging machines that serve to feed the furnaces semi-automatically.”
“In addition the company also ordered a Nederman MikroPul dust extraction and filtration system, complete with all the ducting.”
“All of this equipment was being installed while the foundry was trying to continue operating and producing castings. Not ideal.”
“At the same time the company won an order to supply Eskom with over 1 000 tons a month of 40 and 50mm grinding balls that have between 12 and 27% chrome content. They could only manufacture these on the GF moulding line so existing processes and equipment were used. Again not an ideal situation because throughout the foundry’s history it had only produced steel and iron castings, including grey, ductile and SG iron. The introduction of high chrome meant there would be contamination of metals and longer periods between pouring because of maintenance issues.”
The Nederman MikroPul FS cassette type filter installed at Naledi Foundry has a capacity of 77 500 m3/hr for the extraction of raw gas and dust from the two 10 ton induction furnaces and the SG magnesium converter
Naledi Foundry have incorporated a big bag system for collection of dust on the Nederman MikroPul dust extraction and filtration system that allows for easy removal of the bags
“The problem was also exasperated by the fact that the transfer of metal was being done by a forklift, which is not very efficient especially if your equipment is sitting in a slightly raised position.”
“Sure it formed part of the company’s strategy to diversify the product range as well as being able to offer other metals that the foundry can cast, but there are correct ways to implement these ideas and processes.”
Shutdown
“By the time I arrived here in February the company was in crisis. They had all this money tied up in new modern equipment but most of it was not operating and the equipment that was, was not operating efficiently. It was no wonder they were talking of R100 per kilogram of cast material. As far as I could work out they were only operating at 28% efficiency and only producing 30 tons of castings a day.”
“After my initial assessment, which included analysing all the other auxiliary operations, I decided that the only way to resolve the situation was to have a complete shutdown so as to be able to implement all the necessary changes, complete the installations of the new equipment, add other equipment to make the whole process more efficient, complete the refurbishment of the moulding line, and refurbish equipment in departments such as the fettling department. The company has six Wheelabrator shot blasting machines and only one was working when I did my assessment.”
“I had to convince management that we had to take this drastic step of a complete shutdown so that we could implement a nine point plan that I had prepared. This plan included spending nearly R2 million on fixing and waterproofing the roof sections of the buildings, which were in a really bad state of repair. I also assessed that there were plenty of inefficiencies in the compressors, furnace use, charge makeup, transfer of metal, pouring, energy use, post processing and manpower productivity. Of course none of this would be possible unless there was an injection of working capital.”
As part of the upgrade Naledi Foundry has added an Endeco Omega CB 30 coreshooter in the core shop
The upgrade at Naledi Foundry includes a two-ton an hour Endeco Omega continuous mixer, installed in the core shop area, that delivers the sand on demand
“Fortunately management agreed and on the 15th March we shutdown for two months. This did not make our sales and marketing staff very ecstatic but they realised it was the only option if the company was to re-establish itself. Thankfully they bought into the strategy and immediately began with a rebranding exercise. We have subsequently had customer days since reopening in mid-May and we are starting to win back existing customers confidence again, as well as acquiring new clients.”
“On the new equipment side the two new ABP IFM 7 multi-function furnaces and the two Cyrus FC 12 T charging machines are now fully functional as is the ABP Presspour furnace.”
Nederman MikroPul dust extraction and filtration system
“The Nederman MikroPul dust extraction and filtration system has been installed. The Nederman MikroPul FS cassette type filter has a capacity of 77 500 m3/hr for the extraction of raw gas and dust from the two 10 ton induction furnaces and the SG magnesium converter.”
“The FS filter offered a number of advantages that were attractive to Naledi such as a small footprint, no use of compressed air, an emission warranty of maximum dust content in clean gas of 10mg/Nm, low maintenance requirements and a number of worldwide references in foundry applications including foundries in South Africa.”
Further refurbishment of the GF moulding line includes new motors, belts, rollers and hydraulic packs that will improve efficiencies of the flasks and moulding boxes before, during and after the pouring process
Naledi Foundry is known for supplying fully machined SABS approved castings to the OEMs in the automotive industry
“The installation incorporates a Nederman MikroPul high-efficiency skimmer that catches sparks and solid particles prior to the raw-gas entering the filter itself. The fan package from Reitz is a heavy-duty construction with a noise abatement feature and a 132kW drive motor using a frequency converter for optimised balancing, raw gas suction from the furnaces and energy conservation.”
“The filter was purchased from Nederman MikroPul, who are based in Germany, and Endeco-Omega Foundry Machinery handled the local fabrication scope as well as all aspects of installation based on detailed engineering from Nederman MikroPul.”
“As a result of this installation we are literally reaping the monetary rewards because our furnace linings are now being changed less often, there is less energy consumption and we are now able to bag and sell the zinc oxide collected.”
Air emissions license
“However, besides all these advantages that I have mentioned before, the chief motivating factor as to why we installed the Nederman MikroPul dust extraction and filtration system was to comply with the Air Quality Act and obtain our air emissions license (AEL). Along with the refurbishment and fixing of the baghouse and extraction systems in other areas of the foundry we are confident we will have no problem obtaining the AEL. To make sure that we do we have appointed independent consultants, who have done a number of these applications, to help guide us through the process.”
20-ton HP overhead crane in the presspour area
“We have also installed a 20-ton HP overhead crane in the presspour area. It was ridiculous the amount of time that was wasted in this area because of the use of forklifts. They only had a ladle carrying capacity of three tons and in some instances could not reach the pouring area. These frustrations and time wasting operations have now all been eliminated out of the process with the overhead crane installation.”
With all the recent upgrades Naledi Foundry is already attracting new clients
Naledi Foundry is known for supplying fully machined SABS approved castings to the OEMs in the automotive industry
“With the introduction of the high chrome grinding balls that we now manufacture it meant that we should ideally have two metal streams to avoid contamination. Currently we are installing a new ABP double index tundish system that we will use for the high chrome metal pouring, to alleviate this problem. This new installation will also increase our capacity in this area and in future we will be able to produce at least 400 tons of grinding balls a week.”
“All of the shotblasting equipment has now been refurbished and it is all running. This includes the baghouse and extraction systems. Instead of using three tons of media per 100 tons of castings we are now only using one ton of media per 200 tons of castings. This represents a big saving.”
“There are many other areas where we have improved the efficiencies and productivity and will continue to do so. At this stage we have addressed the critical areas.”
Future plans
“Currently our floor moulding area, which we have not publicised much, is being upgraded. We have already installed a Lauds 6 – 12 ton an hour LSA mixer and we plan to take the production in this area from the current three tons per day to at least 16 tons per day.”
“We also have millions of rands of spent coresand sitting on site and the priority at the moment is to order and have installed a sand reclamation system. With the amount of sand available it won’t take us long to recapitalise our expenditure.”
“We are also seriously looking at the GF converter furnace with the possible installation of Foseco’s Initec system. Currently we are using magnesium blocks, which are expensive. If we install the Initec system we will be able to convert to using ferro magnesium. Again this will save tremendously on costs.”
“Unfortunately there are always going to be casualties when you implement a strategy such as this one. Because of the costs to upgrade our machining operations – age and accuracy of the machines being the motivator – we have decided to close this division and outsource machining operations. However, this does not alter what we offer our clients as we continue to supply fully machined castings to those clients that require them.”
All six of the Wheelabrator shot blasting machines have now been refurbished. This includes the baghouse and extraction systems. Instead of using three tons of media per 100 tons of castings Naledi Foundry are now only using one ton of media per 200 tons of castings
Naledi Foundry are considering installing Foseco’s Initec system in the metal conversion department
“Most of the CNC machines will be sold but some will be kept to be used in our patternshop. We intend to upgrade this division so that in the future we will not have to rely on outsourcing our tooling requirements.”
“Manpower figures are now not what they use to be. But at least now everybody is motivated, from office staff to those on the floor, and understands their roles within the work environment. Daily they are informed on their production figures and how they can make improvements.”
“As the old cliché goes: Where there is no pain there is no gain. Naledi Foundry and the Group has gone through plenty of pain in the last couple of years but the company is now fired up, as are the staff, and ready to grow.”
For further details contact the Naledi Inhlanganiso Group on TEL: 011 845 1546 or visit www.ni-holdings.co.za
