September Coverage Report

PRINT

IMIESA01 September 2016, p.65

The Times (First Edition), (Second Edition), (Cape Edition), (KZN Edition), (Eastern Edition)01 September 2016, p.10

Financial Mail, Little Black Book01 September 2016, p.25

Business Day (Late Final), Review & Opinion01 September 2016, p.9

Seifsa News01 September 2016, p.14

Engineering News02 September 2016, p.24

Sake (Rapport)04 September 2016, p.2

Finweek (Afrikaans)08 September 2016, p.19

Finweek (English)08 September 2016, p.19

Engineering News09 September 2016, p.1

Engineering News09 September 2016, p.8

Business Day (Late Final)15 September 2016, p.2

Business Day (Late Final)20 September 2016, p.2

Rising Sun (Merebank)20 September 2016, p.11

Daily Dispatch (First Edition), Business21 September 2016, p.10

Financial Mail29 September 2016, p.9

Brakpan Herald30 September 2016, p.29

ONLINE

Bdlive.co.za - Business Day Live

IDC should let go of albatrosses that will never fly01 September 2016 Article link: http://www.bdlive.co.za/business/industrials/2016/09/01/idc-should-let-go-of-albatrosses-that-will-never-fly

THE Industrial Development Corporation (IDC) should let go of Scaw Metals and Foskor as they are "albatrosses around its neck"‚ the DA said on Thursday.

"It emerged this week that the IDC’s profits fell by 87% from R1.65bn in 2014/15 to R223m in 2015/16‚" said the party’s Michael Cardo.

He said steel producer Scaw‚ "which is 74%-owned by the IDC‚ posted a loss of R1.1bn‚ while the agrochemicals group Foskor‚ which is 59%-owned by the corporation‚ lost R568m".

Cardo wants the IDC summoned before Parliament’s portfolio committee on economic development "so that it can account for its financial losses and present a turnaround plan".

"We cannot afford to have it go the way of South Africa’s other public enterprises‚ which are money-guzzling sinkholes‚" he said.

It was time "for the entity to rid itself of Scaw and Foskor"‚ he said‚ adding: "They are albatrosses around the IDC’s neck. Several parties have already expressed interest in purchasing Scaw‚ following the IDC’s call for expressions of interest in October last year. Almost a year on‚ the IDC needs to report back on progress towards a sale."

He also raised concerns about Futuregrowth Asset Management’s announcement on Wednesday that it would hold back loans to the "IDC and other state-owned enterprises, including Eskom‚ Transnet‚ the South African National Roads Agency‚ the Land Bank and the Development Bank of South Africa".

"The fund manager will only resume offering loans and rolling over debt once it has been assured that proper oversight and governance mechanisms are in place at these public entities‚" Cardo said.

Bdlive.co.za - Business Day LiveTHE INSIDER: Shabangu misses a trick after being given Zuma’s reins01 September 2016Article Link: http://www.bdlive.co.za/opinion/columnists/2016/09/01/the-insider-shabangu-misses-a-trick-after-being-given-zumas-reins

Heavy gun metal melting

ON FRIDAY, Scaw Metals will be helping the South African Police Service limit the use of illegal firearms by melting 30 tonnes of weaponry at its plant in Germiston. The official media release did not reveal what will become of the metal obtained in this way, but given the sorry state of the South African steel industry — and SA’s sky-high crime rate — this should be a useful and profitable venture for all concerned.

Timeslive.co.za - Times Live‘Don’t let IDC go the way of SA’s other money-guzzling sinkholes’: DA01 September 2016Article link: http://www.timeslive.co.za/sundaytimes/businesstimes/2016/09/01/%E2%80%98Don%E2%80%99t-let-IDC-go-the-way-of-SA%E2%80%99s-other-money-guzzling-sinkholes%E2%80%99-DA

The Industrial Development Corporation (IDC) should dump Scaw Metals and Foskor as they are “albatrosses around its neck”‚ the Democratic Alliance said on Thursday.

“It emerged this week that the IDC’s profits fell by 87% from R1.65-billion in 2014/15 to R223 million in 2015/16‚” said the party’s Michael Cardo.

He said steel producer Scaw‚ “which is 74%-owned by the IDC‚ posted a loss of R1.1 billion‚ while the agrochemicals group Foskor‚ which is 59%-owned by the corporation‚ lost R568-million”.

Cardo wants the IDC summoned before Parliament’s portfolio committee on economic development “so that it can account for its financial losses and present a turnaround plan”.

“We cannot afford to have it go the way of South Africa’s other public enterprises‚ which are money-guzzling sinkholes‚” he said.

It was time “for the entity to rid itself of Scaw and Foskor”‚ he said‚ adding: “They are albatrosses around the IDC’s neck. Several parties have already expressed interest in purchasing Scaw‚ following the IDC’s call for expressions of interest in October last year. Almost a year on‚ the IDC needs to report back on progress towards a sale.”

He also raised concerns about Futuregrowth Asset Management’s announcement on Wednesday that it would hold back loans to the “IDC and other state-owned enterprises including Eskom‚ Transnet‚ the South African National Roads Agency‚ the Land Bank and the Development Bank of South Africa”.

“The fund manager will only resume offering loans and rolling over debt once it has been assured that proper oversight and governance mechanisms are in place at these public entities‚” Cardo said.

Politicsweb.co.za - Politics WebIDC must account to Parliament for financial losses – Michael Cardo01 September 2016Article link: http://www.politicsweb.co.za/politics/idc-must-account-to-parliament-for-financial-losse

I have asked the Chair of the Portfolio Committee on Economic Development, Mmathulare Coleman, to summon the Industrial Development Corporation (IDC) before Parliament so that it can account for its financial losses and present a turnaround plan.

It emerged this week that the IDC’s profits fell by 87% from R1.65 billion in 2014/15 to R223 million in 2015/16.

Steel producer Scaw Metals, which is 74%-owned by the IDC, posted a loss of R1.1 billion, while the agrochemicals group Foskor, which is 59%-owned by the corporation, lost R568 million.

The time has come for the entity to rid itself of Scaw and Foskor. They are albatrosses around the IDC’s neck. Several parties have already expressed interest in purchasing Scaw, following the IDC’s call for expressions of interest in October last year. Almost a year on, the IDC needs to report back on progress towards a sale.

Furthermore, the IDC must account for its exposure to Africa’s biggest private fixed-income money manager, Futuregrowth Asset Management. This comes in the wake of Futuregrowth’s announcement yesterday that it would hold back loans to the IDC.

Futuregrowth has shelved plans to lend more than R1.8 billion to the IDC and other state-owned enterprises including Eskom, Transnet, the South African National Roads Agency, the Land Bank and the Development Bank of South Africa.

The fund manager will only resume offering loans and rolling over debt once it has been assured that proper oversight and governance mechanisms are in place at these public entities.

The IDC needs to keep its nose clean on this score.

Already, question marks hang over the corporation’s decision to restructure a R250 million loan to the President’s pals, the Guptas. By all accounts, the IDC sacrificed commercial considerations on the altar of political expediency when it coughed up R250 million for the Gupta-owned Oakbay Resources to buy Shiva Uranium. It then added fuel to the fire by renegotiating repayment on terms wholly favourable to the Guptas.

The IDC should account to Parliament for its financials without delay. We cannot afford to have it go the way of South Africa’s other public enterprises, which are money-guzzling sinkholes.

Da.org.za - Democratic AllianceIDC must account to Parliament for financial losses01 September 2016Article link: https://www.da.org.za/2016/09/idc-must-account-parliament-financial-losses/

I have asked the Chair of the Portfolio Committee on Economic Development, Mmathulare Coleman, to summon the Industrial Development Corporation (IDC) before Parliament so that it can account for its financial losses and present a turnaround plan.

It emerged this week that the IDC’s profits fell by 87% from R1.65 billion in 2014/15 to R223 million in 2015/16.

Steel producer Scaw Metals, which is 74%-owned by the IDC, posted a loss of R1.1 billion, while the agrochemicals group Foskor, which is 59%-owned by the corporation, lost R568 million.

The time has come for the entity to rid itself of Scaw and Foskor. They are albatrosses around the IDC’s neck. Several parties have already expressed interest in purchasing Scaw, following the IDC’s call for expressions of interest in October last year. Almost a year on, the IDC needs to report back on progress towards a sale.

Furthermore, the IDC must account for its exposure to Africa’s biggest private fixed-income money manager, Futuregrowth Asset Management. This comes in the wake of Futuregrowth’s announcement yesterday that it would hold back loans to the IDC.

Futuregrowth has shelved plans to lend more than R1.8 billion to the IDC and other state-owned enterprises including Eskom, Transnet, the South African National Roads Agency, the Land Bank and the Development Bank of South Africa.

The fund manager will only resume offering loans and rolling over debt once it has been assured that proper oversight and governance mechanisms are in place at these public entities.

The IDC needs to keep its nose clean on this score.

Already, question marks hang over the corporation’s decision to restructure a R250 million loan to the President’s pals, the Guptas. By all accounts, the IDC sacrificed commercial considerations on the altar of political expediency when it coughed up R250 million for the Gupta-owned Oakbay Resources to buy Shiva Uranium. It then added fuel to the fire by renegotiating repayment on terms wholly favourable to the Guptas.

The IDC should account to Parliament for its financials without delay. We cannot afford to have it go the way of South Africa’s other public enterprises, which are money-guzzling sinkholes.

Netwerk24.com - Netwerk 24Moeilike boekjaar vir NOK en kliënte04 September 2016Article link: http://www.netwerk24.com/Sake/Maatskappye/moeilike-boekjaar-vir-nok-en-kliente-20160903

Die algemene verlangsaming in die ekonomie, die ineenstorting van kommoditeitspryse en die droogte het alles meegewerk tot ’n moeilike boekjaar vir die Nywerheidsontwikkelingskorporasie (NOK) en sy kliënte, het Ebrahim Patel, minister van ekonomiese

Netwerk24.com - Netwerk 24Laer staalpryse tref NOK se wins skerp12 September 2016Article link: http://www.netwerk24.com/Sake/Mynbou/laer-staalpryse-tref-nok-se-wins-skerp-20160912

Die NOK se wins is die afgelope boekjaar geknou weens laer kommoditeitspryse. Sy wins was 87% laer op R223 miljoen.

Bdlive.co.za - Business Day LiveIDC changes strategy on loss-making Scaw Metals14 September 2016Article link: http://www.bdlive.co.za/business/industrials/2016/09/14/idc-changes-strategy-on-loss-making-scaw-metals

THE Industrial Development Corporation (IDC) has failed to find a buyer for loss-making Scaw Metals and is now negotiating the sale of four of its divisions separately.

The corporation’s current exposure to the company, which it acquired in 2012, is about R5bn, consisting of shareholder loans and preference shares (R4.1bn) and capitalised interest of R858m.

The IDC’s head of basic metals and mining, Muzwi Tunyiswa, told Parliament’s portfolio committee on economic development on Wednesday that the introduction of one or more strategic equity partners into Scaw Metals would add operational expertise to turn around the business.

The IDC wanted to introduce a strategic equity partner into steel manufacturer Scaw Metals to minimise its ongoing funding requirements.

However, its attempts to find a single buyer for the entire business had proven unsuccessful and so the IDC had created four divisions, which it would sell off separately.

Binding offers were under negotiation with selected parties and once the negotiations were finalised the transactions would be taken to the approval committee.

“The process is under way and the decision will be made by year-end after all the proposals have been evaluated,” Tunyiswa said.

He noted that the IDC had acquired Scaw Metals to preserve SA’s manufacturing capacity; secure a credible local supplier for the country’s infrastructure build programme; preserve beneficiation along the iron and steel value chain; and curb the deindustrialisation of the domestic economy.

The IDC, which suffered a dramatic decline in profit in the year to end-March, appointed advisers to assist in the process in December last year.

The corporation’s 2016 profit fell 87% to R223m from the previous year’s R1.65bn.

Tunyiswa said the IDC was introducing mini-steel mills which on average produced about 200,000 tons of steel a year — mainly construction steel. They used induction furnaces and were cost-efficient.

The corporation was financing four companies to introduce competition into the market. Competition Commission deputy commissioner Hardin Ratshisusu briefed the committee on the decisions taken by the commission to curb excessive pricing by ArcelorMittalSA (Amsa).

International Trade Administration Commission (Itac) chief commissioner Siyabulela Tsengiwe also gave a presentation on the actions taken by the commission to protect the local steel industry.

Itac initiated its own investigation into possibly increasing tariffs on a number of downstream steel products in August. The downstream industry was facing stiff competition from imports of finished steel goods.

“These investigations take place in the context of tough global and domestic economic conditions that have seen Itac having to exercise flexibility and pragmatism in response to real economic needs,” Tsengiwe said.

“The guiding principle in these investigations has been to ensure economic viability, sustainability of production, investment and jobs in the whole steel industry value chain. In other words, SA’s strategy is to have both the upstream and the downstream.”

He also said the commission was considering applications for rebates on the tariffs on those types and grades of steel materials not manufactured by Amsa.

Engineeringnews.co.za - Engineering NewsUIF commits nearly R12m on training scheme for Scaw Metals employees19 September 2016Article link: http://www.engineeringnews.co.za/article/uif-commits-nearly-r12m-on-training-scheme-for-scaw-metals-employees-2016-09-19

The Unemployment Insurance Fund (UIF) has committed R11.9-million to the Manufacturing Engineering and Related Services Sector Education and Training Authority to fund the training of 325 Scaw Metals employees for six months.

This follows the approval of Scaw Metals’ application to the Commission for Conciliation, Mediation and Arbitration, in March, when it faced possible retrenchments owing to difficult trading conditions in the steel industry.

Scaw Metals has received the first payment of R1.99-million from the UIF, which will be used to pay the salaries of 325 workers participating in the training lay-off scheme (TLS). The UIF will pay 75% of an employee’s basic salary up to a maximum amount of R 9 358 a month.

In the previous financial year, the UIF committed R46.3-million towards the scheme and paid R8.37-million to various companies participating in TLSes.

Labour Activation Programme chief director Mpumi Mnconywa noted that 2 703 learners have been registered in the previous financial year, with some already having completed their training programmes through various sector education and training authorities.

Under the scheme, workers agree to forego their normal wage to attend the training programme and accept a training allowance during the training period. Employers gain a recovery period by reducing payroll costs for a stipulated period while improving the skills of their workers at limited cost to the company.

The UIF uses its excess funds to fund poverty alleviation schemes and, last year, allocated more than R400-million towards the schemes. The fund has signed funding agreements with 23 technical

vocational education and training colleges to train 356 learners in building and civil construction at a cost of R1.8-million for each college.

Rnews.co.za - R NewsUIF commits R11.9 million to Scaw Metal to save jobs19 September 2016Article link: http://www.rnews.co.za/article/10983/uif-commits-r11-9-million-to-scaw-metal-to-save-jobs

The Unemployment Insurance Fund has recently signed a R11 958 732 agreement with MerSETA to fund the training of 325 employees from SCAW METAL for a period of six months.

This follows the approval of Scaw Metal’s application to the CCMA in March 2016 when the company faced possible retrenchments due to difficult trading conditions in the steel industry.

Scaw Metal has received the first payment of R1.993 million from UIF and this will be used to pay salaries of 325 workers participating in the Training Lay Off scheme (TLS). The Training Lay Off will run for six months and UIF will pay 75% of an employee’s basic salary up to a maximum amount of R 9 358.00 per month.

In the previous financial year UIF committed R46 391 283.20 towards the scheme and paid R8 377 104.82 to various companies participating in TLS. According to Mpumi Mnconywa, Chief Director: Labour Activation Programme 2 703 learners have been registered in the previous financial year with some already completed their training programmes through various Sector Education and Training Authorities.

“Training Lay-Off’ is a temporary suspension of work of a worker or a group of workers that are facing a risk if retrenchment due to their company being in distress as a result of economic conditions.

Under the scheme workers agree to forego their normal wage to attend the training programme and accept a training allowance during the training period. Employers gain a recovery period by reducing payroll costs for a stipulated period whiles improving the skills of their workers at limited costs to the company.

UIF uses its excess funds to fund poverty alleviation schemes, and last year it allocated more than R 400 million towards the schemes. The Fund has signed funding agreements with23 Technical Vocational Education and Training (TVET) Colleges to train 356 learners in Building and Civil Construction at a cost of R1,8 million per TVET College.

“We also renewed our agreement with the Transport Education and Training Authority to train 152 learners in Scuba Diving, Pilots, Professional Driving and other allied trades”, said Mnconywa.

Salabournews.co.za/press-releases - South African Labour NewsDEPARTMENT OF LABOUR: UIF commits R 11.9 million to Scaw Metal to save jobs

19 September 2016Article link: http://www.salabournews.co.za/press-releases/33857-department-of-labour-uif-commits-r-11-9-million-to-scaw-metal-to-save-jobs

Press Statement dated 19 September 2016

Issued by Makhosonke Buthelezi, Director: Communication and Marketing, Unemployment Insurance Fund (UIF)

Bdlive.co.za - Business Day LiveUIF holds R1.2bn for training scheme20 September 2016Article link: http://www.bdlive.co.za/business/industrials/2016/09/20/uif-holds-r1.2bn-for-training-scheme

THE Unemployment Insurance Fund (UIF), which has been slammed over the years for inefficiencies in distributing unemployment payouts, has set aside R1.2bn to spend on its training layoff scheme.

Since the UIF launched its training layoff scheme in 2011, it has assisted 52 companies to retrain 10,631 workers in the hope of keeping them in employment.

Makhosonke Buthelezi, director of communication and marketing at the UIF, said that they had not checked with all of the companies to determine how many of the retrained employees had retained their jobs. The R1.2bn includes an undertaking to spend R11.9m to fund the training of 325 employees from Scaw Metals for six months.

The undertaking follows the approval of Scaw Metals’s application to the Council for Concilliation, Mediation and Arbitration in March, when the company faced possible retrenchments because of difficult trading conditions in the steel industry.

Dudu Ndlovu, executive head of public affairs and communications at Scaw Metals, said the R11.9m was in addition to the R44.4m the company had spent on training.

Scaw Metals, which was part of the Anglo American empire, was sold to the Industrial Development Corporation (IDC) in 2012 for R3.4bn. The IDC owns 74% of the company, a black economic empowerment consortium that includes Shanduka Resources, holds an additional 21% and an employee share option scheme holds the remaining 5%. The company, whose business is linked to spending on infrastructure and mining, reported a 10% drop in revenue to R5.7bn in financial 2016 and an operating loss of R248m.

Under the UIF’s training layoff scheme, workers agree to forego their normal wage to attend the training programme and accept an allowance during the period.

To date, the largest single beneficiary of the scheme has been Mercedes-Benz, which received about R20m in 2014. Its workers stayed at home for six months, while the company undertook a retooling of its machinery.

The R1.2bn allotted to its training scheme will not make much of a dent in the UIF’s surplus. At the end of its financial 2016 year, the surplus was R99bn.

According to its most recently available annual report, in 2015 the fund received income of R16.1bn and paid out R7.2bn to 798,467 claimants. About 81% of the payouts were for unemployment-relief and the remainder for illness, pregnancies and dependants who lost a breadwinner. Notwithstanding its commitment to funding training, unless there is a substantial increase in the UIF’s rate of payout, its surplus is set to become substantially larger every year.

The DA has previously suggested that UIF contributions should be reduced temporarily in a bid to boost the economy.

ANN7.com - Africa News Network 7UIF commits R 11,9 million to Scaw Metal to save jobs20 September 2016Article link: http://www.ann7.com/uif-commits-r-119-million-to-scaw-metal-to-save-jobs/

About 325 employees from Scaw metal will receive training for a period of six months, the Unemployment Insurance Fund (UIF) announced on Monday.

This follows the approval of Scaw Metal’s application to the CCMA in March 2016 when the company faced possible retrenchments due to difficult trading conditions in the steel industry.

Last year in August, Trade union Solidarity indicated that Scaw Metals Group could cut up to 1,000 jobs.

According to the union the company served retrenchment notices stating that the company is under severe pressure from an industry that is struggling to hit profit lines.

Solidarity’s Marius Croucamp said then that “it’s the latest in a spate of job cuts in the metal industry and current indications suggest around 14,000 jobs could be lost within the three months.”

Scaw Metal has received the first payment of R1.993m from UIF and which will be used to pay salaries of 325 workers participating in the Training Lay Off scheme (TLS).

The training will run for six months with the UIF paying 75% of an employee’s basic salary up to a maximum amount of R 9 358.00 per month.

UIF in the previous financial year committed R 46 391 283.20 towards the scheme and paid R8 377 104.82 to various companies participating in TLS.

“UIF uses its excess funds to fund poverty alleviation schemes, and last year it allocated more than R 400 million towards the schemes. The Fund has signed funding agreements with23 Technical Vocational Education and Training (TVET) Colleges to train 356 learners in Building and Civil Construction at a cost of R 1,8 million per TVET College.

“We also renewed our agreement with the Transport Education and Training Authority to train 152 learners in Scuba Diving, Pilots, Professional Driving and other allied trades,” Chief Director of Labour Activation Programme Mpumi Mnconywa said.

Thenewage.co.za - The New AgeUIF commits R 11,9 million to Scaw Metal to save jobs20 September 2016Article link: http://www.thenewage.co.za/uif-commits-r-119-million-to-scaw-metal-to-save-jobs/

About 325 employees from Scaw metal will receive training for a period of six months, the Unemployment Insurance Fund (UIF) announced on Monday.

This follows the approval of Scaw Metal’s application to the CCMA in March 2016 when the company faced possible retrenchments due to difficult trading conditions in the steel industry.

Last year in August, Trade union Solidarity indicated that Scaw Metals Group could cut up to 1,000 jobs.

According to the union the company served retrenchment notices stating that the company is under severe pressure from an industry that is struggling to hit profit lines.

Solidarity’s Marius Croucamp said then that “it’s the latest in a spate of job cuts in the metal industry and current indications suggest around 14,000 jobs could be lost within the three months.”

Scaw Metal has received the first payment of R1.993m from UIF and which will be used to pay salaries of 325 workers participating in the Training Lay Off scheme (TLS).

The training will run for six months with the UIF paying 75% of an employee’s basic salary up to a maximum amount of R 9 358.00 per month.

UIF in the previous financial year committed R 46 391 283.20 towards the scheme and paid R8 377 104.82 to various companies participating in TLS.

“UIF uses its excess funds to fund poverty alleviation schemes, and last year it allocated more than R 400 million towards the schemes. The Fund has signed funding agreements with23 Technical Vocational Education and Training (TVET) Colleges to train 356 learners in Building and Civil Construction at a cost of R 1,8 million per TVET College.

“We also renewed our agreement with the Transport Education and Training Authority to train 152 learners in Scuba Diving, Pilots, Professional Driving and other allied trades,” Chief Director of Labour Activation Programme Mpumi Mnconywa said.

Castingssa.com - Castings SAIDC and Scaw Metals on DA’s hit list23 September 2016Article link: http://castingssa.com/idc-and-scaw-metals-on-das-hit-list/

IDC and Scaw Metals on DA’s hit list

Scaw Metals spent R176 million (FY15: R288 million) on capital expenditure during the period to maintain, improve and expand production capacity.

The Industrial Development Corporation (IDC) should dump Scaw Metals and Foskor as they are “albatrosses around its neck”‚ the Democratic Alliance said recently.

“It has emerged that the IDC’s profits fell by 87% from R1.65 billion in 2014/15 to R223 million in 2015/16‚” said the party’s Michael Cardo.

He said steel producer Scaw‚ “which is 74%-owned by the IDC‚ posted a loss of R1.1 billion‚ while the agrochemicals group Foskor‚ which is 59%-owned by the corporation‚ lost R568 million.”

Cardo wants the IDC summoned before Parliament’s portfolio committee on economic development “so that it can account for its financial losses and present a turnaround plan.”

“We cannot afford to have it go the way of South Africa’s other public enterprises‚ which are money-guzzling sinkholes‚” he said.

It was time “for the entity to rid itself of Scaw and Foskor. They are albatrosses around the IDC’s neck. Several parties have already expressed interest in purchasing Scaw‚ following the IDC’s call for expressions of interest in October last year. Almost a year on‚ the IDC needs to report back on progress towards a sale.”

Inside Scaw’s Union Junction foundry

IDC CEO Geoffrey Qhena said several interested parties had already expressed interest in Scaw, or parts thereof, following its call for expressions of interest. Qhena said it was premature to offer a firm timeframe for the conclusion of a deal involving Scaw, saying only that there should be greater clarity prior to the start of the group’s next financial year.

Economic Development Minister Ebrahim Patel indicated that he had directed the group to ensure that it found ways of placing Scaw, as well as phosphate miner Foskor, on a commercially sustainable footing. Anglo American, which declared Scaw noncore in 2009, sold its 74 per cent stake to the IDC for R3.4 billion in 2012. Since then, the group has been buffeted by hostile market conditions, which have also rocked the entire domestic steel sector.

The other shareholders are Southern Palace, Izingwe and Pembani.

New R160 million high-volume moulding line commissionedMarkus Hannemann, CEO of Scaw Metals said in his annual report that: “The full year ended March 2016 has largely been a continuation of the tough trading environment experienced in the prior year.”

“Scaw recognised the need to adapt the business in line with a changing and increasingly competitive world. As such, we embarked on a group-wide restructuring process in August 2015, while continuing to invest in the future sustainability of the business.”

“As advances in production efficiency remain a priority, we commissioned a new R160 million high-volume moulding line. This investment boosts Scaw’s position as a global competitive manufacturer, particularly for foundry products.”

“The restructuring exercise is now complete. With a leaner structure, the business is better equipped to meet the challenges of a changing world.”

“Commodity prices have remained at unprecedented lows, impacting industries beyond the commodity producers. Slowing growth from China has dampened demand for all major commodities. With Chinese demand fading, the competitive dynamics of steel products have increased significantly, as Chinese producers upped their focus on exports. The turmoil of FY16 has certainly taken its toll on the industry.”

“Scaw’s business divisions reflected a mixed performance given the company’s diverse products and markets. Locally, private and public sector demand remained subdued, with few significant infrastructure projects coming into the market. The dire situation in the mining industry witnessed the curtailment of spend to the essentials.”

“Despite intense competition, Scaw has managed to retain its market share for the majority of its product range by offering a competitive combination of price and service levels to compete against imported products.”

Transformation“Transformation is one of the strategic pillars Scaw has identified as essential in developing a sustainable business.”

“The introduction of the stricter revised B-BBEE codes has seen many businesses regress from their level rating as they embraced the new requirements. Conversely, Scaw’s strong resolve and commitment has seen Scaw leap to an outstanding level 2 rating under the new codes.”

“Scaw’s training school and programmes continue to impart vital skills to our employees while additionally providing much needed skills and experience in the form of apprenticeship, learnerships and internships to some 482 youngsters.”

“In the broader social context, Scaw is committed to making a change. Our enterprise and supplier development programmes are of the highest quality and our improved B-BBEE level 2 rating bears testament to this achievement.”

For further details visit www.scaw.co.za or http://financialresults.co.za/2016/scaw_ir2016/ceo-report.php

Engineeringnews.co.za - Engineering NewsRail Road Association to hold AGM23 September 2016Article link: http://www.engineeringnews.co.za/article/rail-road-association-to-hold-agm-2016-09-23/rep_id:4136

The Rail Road Association (RRA) of South Africa will hold its annual general meeting on Thursday, September 29. The gathering will take place at Scaw Metals’ offices in Germiston from 8:30.

The RRA has been critical of what it views as uneven localisation efforts in Transnet’s multibillion-rand locomotive procurement programme and has urged government to play a more active role in ensuring that all four suppliers deliver on their local-content commitments.The issue came under scrutiny during a two-day colloquium on local public procurement, hosted by Parliament’s Portfolio Committee on Trade and Industry in August.

The committee concluded that greater collaboration was required between stakeholders to ensure higher levels of localisation.

It also called for a “re-think” of policies relating to the payment for the local-content verification, which is undertaken by the South African Bureau of Standards.

The committee urged the National Treasury and the Department of Trade and Industry to resolve the issue of funding for the verification process and to ensure an amendment in regulation, if necessary

Germistoncitynews.co.za - Germiston City NewsSupport your local cricket teams27 September 2016Article link: http://germistoncitynews.co.za/134048/support-your-local-cricket-teams/

The days are getting longer and the nights are getting warmer and summer is well on its way to Germiston.

With it comes the start of the local cricket season, which will kick-off in the city on Saturday, October 1.

Germiston is lucky to boast not one but two fantastic cricket clubs, namely, Scaw Metals Cricket Club and the Germiston City Cricket Club.

Scaw will play their home matches at either their main oval, the Scaw Main Oval in Dinwiddie, situated at 1 Malherbe Street, or their second oval at the Elsburg Sports Complex, situated at the corner of Heidelberg Road and Egret Street in Elspark.

Germiston will play their home matches at the Germiston City Sports Grounds in Vimy Ridge Road, in Delville.

“As we all know cricket is dying in our area from school level up to club level.

“We at Scaw are determined to keep the sport alive not only for us but for the whole community and our children who will follow in the years to come,” said Martiens Grobler of the Scaw Metals Cricket Club.

With this in mind the community are encouraged to join their local cricket club.

For more information on the Germiston City Cricket Club call Linton Cox on 082 829 4051 or David Ungerer on 082 885 6351.

For more information on the Scaw Metals Cricket Club call Grobler on 079 520 3642 or email to martiens@copalcor.co.za, alternatively call Des Thorpe on 083 268 8382.

“Scaw is an open club, so don’t worry that you have to work for Scaw or know somebody that works for Scaw to join the cricket club,” Grobler said.

Other sports articles you may be interested in:

Brakpanherald.co.za - Brakpan HeraldUnited looking to go all the way29 September 2016Article link: http://brakpanherald.co.za/138619/united-looking-to-go-all-the-way/

A new season always brings about fresh changes and, in the ECU region, it is no different.

Eight new clubs have entered teams into the ECU’s senior Saturday and Sunday club cricket leagues for the 2016/2017 season.

There will be two new faces in the elite competition, the Premier League, as highly rated Alberton Cricket Club and Bedfordview Cricket Club have made the move from the Gauteng Cricket Union, to make the league a 12-team competition.

They bring with them an abundance of talented players and excellent facilities.

The team which finishes top of the table will automatically advance to the final, while second and third will battle it out for a spot in that final.

The Promotion League will consist of 20 teams this year, with a number of new clubs moving into the region, such as Midrand, Scaw Metals and Katlehong.

Last year was United Cricket Club’s best ever performance in the Premier League.

They finished as runners-up in the league stage of the competition (on net rate to Benoni Northerns Cricket Club) and then lost out in the second versus third place play-off semi-final, against Kempton Park, at Willowmoore B.

It was a tough pill to swallow for a side who had been so incredibly competitive during the season and who had gone undefeated in the first half of the campaign.

This year it is a clean sheet again and the team is confident that they can go all the way to Cricket South Africa’s (CSA) National Club Championships, in Pretoria.

It won’t be easy, though, with a lot of movement of players at perennial rivals (Benoni Northerns, CBC Old Boys and Kempton Park) and the addition of the two newcomers Alberton and Bedfordview.

JP Meade, Kevin Hinton and Aidan Justus have returned to the squad after gaining experience with spells overseas during the winter season, while skipper Justin Gamble recently earned his first cap for the Easterns semi-professional side at the Africa T20 Cup.

Gamble was also given the opportunity to play a warm-up game, with three Easterns teammates and the balance of the side from the Northerns Union, against the touring Irish national side, who played South Africa and Australia in Benoni.

That team beat Ireland in the last over and Gamble scored 54 runs off 34 balls.

United have also welcomed back old boy pace bowler Peter Trewick to the fold.

The Premier League team will welcome new boys Bedfordview to Hosking Park on Sunday, October 2, while the Promotion League XI also face a new proposition when they travel to Olifantsfontein, to take on Midrand.

Tametimes.co.za - Tame Times Scaw Metals group invest in education29 September 2016Article link: http://tametimes.co.za/scaw-metals-group-invest-education/

SCAW METALS GROUP INVEST IN EDUCATION

Scaw Metals Group donated four mobile libraries with 500 books each to Zimele Primary School, Igagasi Primary School, Ponego Secondary School and Vosloorus Comprehensive School last week Wednesday at a function held at Zimele Primary School.

The library books to the value of over three hundred thousand rand were handed over to the school principals who were accompanied by the learners and representatives from the School Governing Body (SGB). The two primary schools; Igagasi and Zimele Primary School were also given each, a 32 Led television and DVD player.

The schools principals, learners and members of SGB were very delighted to receive the donations and were thankful to Scaw Metals Group.

Mthunzi Mdluli, chairperson of Vosloorus Comprehensive School SGB said, “We are grateful for the donations. They should continue supporting township schools and extend a hand to other schools. We call this donation an investment, l promise that you will receive positive results from the academic performances of the learners.”

Bafana Msibi, principal of Igagasi Primary School said they sincerely appreciate the donations. “South Africa is lacking in literacy. The mobile library will assist our learners to be able to read and write,” said Msibi.

Dudu Ndlovu , head of Public Affairs and Communications at Scaw Metals Group said the initiative is part of Scaw Metals Group cooperate social investment. “Education is one of our focus areas. We identified the need of libraries in the schools to assist learners in reading hence we have donated the mobile libraries,” said Ndlovu.

Financialmail.co.za - Financial MailSteel industry: Timing is everything

29 September 2016Article link: http://www.financialmail.co.za/fmfox/2016/09/29/steel-industry-timing-is-everything

WHAT IT MEANS: Global steel glut has caused prices to drop. State’s priority is to protect existing businesses.

The Industrial Development Corp (IDC), which only last year affirmed its commitment to build a US$5bn steel mill in SA together with Chinese investors, is unlikely to proceed with the investment.

"The [persistently] unfavourable global economic climate and continued oversupply in the global steel markets make it difficult to come to a conclusive decision," says Mandla Mpangase, public relations manager at the state finance institution.

The department of trade & industry (DTI) has cast doubt on the likelihood that the joint venture with Hebei Iron & Steel Group, China’s biggest manufacturer, will go ahead.

"It is not the best time to be talking investment in steel," Garth Strachan, DTI deputy director-general of industrial development, told the Financial Mail. "Our focus is on saving existing primary steel producers. This includes tariff measures for the upstream and downstream industry.

"Securing a new investment might have been a priority three or four years ago [but] it’s not a priority at the moment," he says.

The IDC had planned to invest in the new steel mill even though it already owns 74% of Scaw Metals and 8% of ArcelorMittal SA (Amsa) and has a stake in Evraz Highveld Steel & Vanadium. Its seeming about-turn coincides with weighted efforts by Amsa, the country’s largest steel producer, to mend bad relations with government.

Last month, Amsa agreed to drop import parity pricing on flat steel products, which government has long called for, saying that selling domestic steel based on international prices had led to high input costs and harmed the competitiveness of the downstream industry.

Amsa has also been slapped with a record R1.5bn fine for its role in a longstanding steel cartel and has committed to spending R4.5bn on capital expenditure in SA over the next five years.

The premise is that improved efficiencies will eventually create jobs.

Amsa CEO Wim de Klerk admits that there has been bad blood between the steel maker and government in the past.

"But I think this has changed of late. [Government] now sees us as a partner and we also see [it] as a partner," he says.

That government has agreed to protect the local industry, which is on its knees amid plunging steel prices and weak local demand, from dumped Chinese imports is a testament to the closer ties, says De Klerk.

In response to questions about the proposed steel mill, he says: "I think anyone who invests in a steel mill in SA will lose serious money, because the cake is just too small.

"Under the current market conditions, it is unlikely that government will build another big steel mill here As far as I know, it is off the charts."

The local subsidiary of the world’s largest steel maker has not made an annual profit since 2010. It is in the process of buying Evraz Highveld Steel, which went into liquidation last year.

BROADCAST

East Coast radioBusiness Watch20 September 2016

YFMSmash and GrabUIF Commits millions to save jobs20 September 2016