brics iron foundries survey
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Dominic Mitchell March 2013. BRICS IRON FOUNDRIES SURVEY. General overview Materials and their costs Power sources and usage Cost structure Training. Presentation content. - PowerPoint PPT PresentationTRANSCRIPT
BRICSIRON FOUNDRIES SURVEY
Dominic Mitchell March 2013
PRESENTATION CONTENT General overview Materials and their costs Power sources and usage Cost structure Training
BACKGROUND The survey was commissioned at the
end of 2012 by the National Foundry Technology Network and the SA Institute of Foundrymen
At last BRICS conference delegates expressed the need to create stronger focus areas for discussion
As iron foundries are significant by output volume, it was agreed to focus on them.
SURVEY OVERVIEW Conducted in South Africa, Brazil, India, China Russia recently had an extensive
benchmarking exercise with UNIDO Main purpose was to pick out trends and set a
context for comparison Challenges related to language, short time
frames for cleaning and checking of data, and countries responded with differing degrees of accuracy. Foundries too.
ACKNOWLEDGEMENTS Thanks are extended to:
The Brazilian Foundry Association UNIDO Russia the Indian Institute of Foundrymen The China Foundry Association The SA Institute of Foundrymen
NUMBER OF IRON FOUNDRIES
BRAZIL INDIA CHINA SOUTH AFRICA0
2000
4000
6000
8000
10000
12000
14000
16000
18000
521
4000
16000
78
OVERALL IRON PRODUCTION (VOLUME IN TONS)
BRAZIL INDIA CHINA SOUTH AFRICA0
5000000
10000000
15000000
20000000
25000000
30000000
2 360 680
9 100 000
26 000 000
300 000
OVERALL IRON PRODUCTION (VOLUME IN TONS) OF THE 3 LARGEST IRON FOUNDRIES IN THE COUNTRY
BRAZIL INDIA CHINA SOUTH AFRICA0
100000
200000
300000
400000
500000
600000
700000
800000688073
48100
700000
150000
TOTAL NUMBER OF DIRECT AND INDIRECT EMPLOYEES
BRAZIL INDIA CHINA SOUTH AFRICA
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
57600
450000
1200000
6618
TOTAL NUMBER OF EMPLOYEES IN IRON FOUNDRIES INDIRECTTOTAL NUMBER OF EMPLOYEES IN IRON FOUNDRIES DIRECT
NO. OF UNIVERSITIES OFFERING FOUNDRY RELATED DEGREES
BRAZIL CHINA SOUTH AFRICA0
50
100
150
200
250
12
205
6
JOBBING AND PRODUCTION RATIOS
BRAZIL RUSSIA INDIA CHINA SOUTH AFRICA
0102030405060708090
100
14
75
30
44
86
25
70
56
JOBBINGPRODUCTION
COMPARATIVE RATIOS OF IRON
BRAZIL INDIA CHINA SOUTH AFRICA
0
10
20
30
40
50
60
70
8070
6065
3225
3933
37
40 3 4
1. Grey/flake cast iron2. Ductile spheroidal graphite3. Ductile pipe iron
AVERAGE IRON ACROSS COUNTRIES
1. Grey/flake cast iron61%
2. Ductile spheroidal graphite
36%
3. Ductile pipe iron3%
MARKET SECTORS SERVED
BRAZIL INDIA CHINA SOUTH AFRICA
0
10
20
30
40
50
60
7062
36
27.821
16 19 20.524
84
11.3
20 0 2
33
AutomotiveManufacturingInfrastructureConstructionMiningRailwaysAgricultureOther
AVERAGE AGE OF FURNACES
BRAZIL RUSSIA INDIA CHINA SOUTH AFRICA0
5
10
15
20
25
30
3530
11
6
25.5
MARKET SECTORS AVERAGED BRICS
Automotive37%
Manufacturing20%
Infrastructure6%
Construction3%
Mining9%
Railways3% Agriculture
12%
Other11%
AVERAGE
DOMESTIC VS EXPORT MARKETS
BRAZIL INDIA CHINA SOUTH AFRICA0
10
20
30
40
50
60
70
80
90
100
87 84 85 88
13 16 15 12
DOMESTICEXPORT
IMPORT/EXPORT RATIOS BRICS AVERAGE
DOMESTIC 86%
EXPORT 14%
AVERAGE PRICE OF ALLOYS/TON
BRAZIL INDIA CHINA SOUTH AFRICA$0
$500
$1,000
$1,500
$2,000
$2,500
$2,025
$1,213
$1,588
$1,080
SCRAP AVERAGE COST PER TON
BRAZIL INDIA CHINA SOUTH AFRICA$0
$100
$200
$300
$400
$500
$600
$380
$462
$543
$481
RESINS: AVERAGE COST PER TON
BRAZIL INDIA CHINA SOUTH AFRICA$0
$500$1,000$1,500$2,000$2,500$3,000$3,500$4,000 BRAZIL;
$3,350
INDIA; $1,565
CHINA; $1,579
SOUTH AFRICA; $3,633
Resins: Average cost per ton ($)
SAND AVERAGE COST PER TON
BRAZIL INDIA CHINA SOUTH AFRICA$0
$10$20$30$40$50$60$70$80$90
$100
$20
$79
$48
$86
AVERAGE VALUE OF CASTINGS PER TON
BRAZIL INDIA CHINA SOUTH AFRICA$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$5,000
$1,533$1,017
$1,420
GOVERNMENT INCENTIVES This is a complex topic with many
layers Incentives range from export incentives
(SA) State/province/local government
investment incentives (Brazil) Sub-sector and equipment
development plans(China) Manufacturing and skills development
policy (India)
COST STRUCTURE
MATERIAL AS A % OF PRODUCTION COST
India South Africa Brazil China Russia0
10
20
30
40
50
60
70
80
50
28
37.5
72
45.2
Material
ENERGY AS A % OF PRODUCTION COST
India South Africa Brazil China Russia0
2
4
6
8
10
12
14
16
18
1516
11
8.5
13.4
Energy
LABOUR AS A % OF PRODUCTION COSTS
India South Africa Brazil China Russia0
5
10
15
20
25
30
35
40
12
33.5 32
8
21.4Labour
EQUIPMENT AS A % OF PRODUCTION COST
India South Africa Brazil China Russia0
2
4
6
8
10
12
14
16
8
14.5
9 8.57.2 Equipment
OVERHEADS AS A % OF PRODUCTION COST
India South Africa Brazil China Russia0
2
4
6
8
10
12
14
16 15
8
10.5
3
12.8
Overheads
COMBINED COST STRUCTURE %
India South Africa
Brazil China Russia0
20
40
60
80
100
120
5028 37.5
72
45.2
15
1611
8.5
13.4
1233.5 32
8
21.48 14.5 9
8.57.2
15 8 10.5 3 12.8
OverheadsEquipmentLabourEnergyMaterial
POWER SOURCE IN IRON FOUNDRIES
BRAZ
ILINDIA
CHINA
SOUTH
AFRICA
0
20
40
60
80
100
120
1. Municipal electricity 2. National grid elec-tricity
3. Natural gas 4. Coke/coal5. Paraffin 6. fuel oil/diesel own
generation DG set / windmill
7. Other (specify)
POWER INCENTIVES/GOVT SUPPORT Brazil and India have differing tariffs for
different times of the day – trough and crest pricing (peace hours)
Brazil has a national cost reduction project
SA has a green energy efficiency fund with a rebate for energy efficient equipment, also differing pricing structure
CONSTRAINTS IN ELECTRICITY SUPPLY
BRAZIL INDIASOUTH
AFRICA CHINA
Long term supply Cost
Gap in Supply & demandHigh power tariff Supply not regular
Generating capacity (infrastructure) Rapidly increasing costsQuality and reliability of supply
Power outages in South
ELECTRICITY COST PER KW/H
BRAZIL RUSSIA INDIA CHINA SOUTH AFRICA
$0.000$0.020$0.040$0.060$0.080$0.100$0.120$0.140$0.160$0.180$0.200
$0.165
$0.050
$0.160$0.172 $0.171
KW/H USED PER TON
BRAZIL RUSSIA INDIA CHINA SOUTH AFRICA
0500
10001500200025003000350040004500
600
4176
1250
639859
ELECTRICITY COST PER TON
BRAZIL RUSSIA INDIA CHINA SOUTH AFRICA
$0
$50
$100
$150
$200
$250
$99
$209 $200
$110
$147
DAYS PER ANNUM THAT FOUNDRIES OPERATE
BRAZIL INDIA CHINA SOUTH AFRICA0
50
100
150
200
250
300
350
250
302 300
242
PERSONNEL COSTS This section of the survey was not
completed by many foundries who felt that this was sensitive information
A consequence is also that labour productivity was not possible to calculate.
TRAINING SENIOR MANAGEMENT
BRAZIL INDIA SOUTH AFRICA0
102030405060708090
100 100 100
252716
24
Tertiary academic degree %Tertiary Technical cer-tificate %Apprentice-ship %On the job training %Secondary school %
TRAINING MIDDLE MANAGEMENT
BRAZIL INDIA SOUTH AFRICA0
102030405060708090
100
50
104
90
29
1525
Tertiary academic degree %Tertiary Technical cer-tificate %Apprentice-ship %On the job training %Secondary school %
TRAINING MOULDERS
BRAZIL INDIA SOUTH AFRICA0
102030405060708090
100 100
8
60
2620
51
20
100
Tertiary academic degree %Tertiary Technical cer-tificate %Apprentice-ship %On the job training %Secondary school %
TRAINING FETTLERS
BRAZIL INDIA SOUTH AFRICA0
102030405060708090
100 100
30
92
20
0
30
100
Tertiary academic degree %Tertiary Technical cer-tificate %Apprentice-ship %On the job training %Secondary school %
MAIN CERTIFICATION SYSTEMS
BRAZIL INDIA CHINASOUTH AFRICA
ISO 9000 ISO 14000 TS
QS 9000 TS 16949 ISO
ISO9001 ISO14000TS16949
ISO 9001 TS 16949VDA 6.1
THANK YOU