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Scaw Metals July Coverage Report
SA Mining
01 June 2014, p.30
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Sunday Times
01 June 2014, p. 8
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Mechanical Technology
01 July 2014, p.32
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Cape Business News
01 July 2014, p.24
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Cape Argus
02 July 2014, p. 5
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Cape Argus ( AM Edition), Business
02 July 2014, p.25
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Business Report (Cape Times)
03 July 2014, p.16
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Business Report (Mercury)
03 July 2014, p.18
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Business Report (Pretoria News)
03 July 2014, p.20
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Business Report ( Star)
03 July 2014, p.18
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Cape Argus
03 July 2014, p.2
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Citizen (First Edition) Business
04 July 2014, p.29
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Engineering News
11 July 2014, p.62
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Sunday Times
27 July 2014, p.5
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ONLINE
Achieveronline.co.za - Achiever EDUCATION 26 Jun 14 http://www.achieveronline.co.za/articles/education-11492.html
The Vaal University of Technology (VUT) is playing a leading role in providing its graduates with the
requisite qualification and experience to prepare graduates for high demand, scarce-skills careers in
industry.
Head of Department for Non-Destructive Testing (NDT) at VUT, Ike Sikakana, says NDT is a
qualification with a great future. It is the only course of this nature provided in Africa with
comparative qualifications found in the UK, the USA, India, Malaysia and Ukraine.
Non-Destructive Testing relates to the testing of materials for flaws without harming the materials
under test, providing a cost-effective means of inspection while protecting the material’s usability.
VUT Non-destructive testing program provides tremendous opportunities in gaining knowledge
about material safety and quality inspection.
“This programme prepares our students for careers in testing and inspection in a wide range of
industries which is in high demand. Applicable industries include aviation, construction,
maintenance, industrial plants (nuclear, petroleum, Sasol, Eskom, steel and fabrication), railways,
independent testing laboratories, electronics and arms.
“Graduates have extensive career opportunities, ranging from technicians to engineers and research
and development professionals”, remarked Mr Sikakana.The skilled professional is what South Africa
needs to cultivate more so now than ever. Universities of Technology and EFT colleges are properly
positioned to bridge the skill gap by offering innovative courses and diplomas. The three-year
national diploma course consists of two years of course work, followed by a year of work-integrated
learning.
“The following NDT end-user industries have over the past 10 years assisted with in-service Training
of VUT graduates; Rotek Engineering, Stein Müller Engineering, Scaw Metals, Thomas Foundry to
mentione but a few, said Mr. Sakakana.
To qualify for enrollment on the programme, an applicant must have matriculation at level 4 in
English, mathematics and physical science. Although the course has been offered since the 1970s, it
has recently been refreshed and there are currently more than 200 students registered in the first
four of six semesters. The diploma elevates NDT to be respected as a key component for the safe
operation of machinery and equipment in industry.
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Online
Ujuh.co.za - Ujuh
Rolfes Holdings rings changes to its board
30 Jun 14
http://www.fin24.com/Economy/Numsa-No-negotiations-scheduled-yet-20140701
Johannesburg - More than 220 000 engineering and metal workers launched a strike over wages on
Tuesday, hot on the heels of a crippling platinum dispute and dealing a further blow to an already
weak economy.
Members of the National Union of Metalworkers of South Africa (Numsa), the country's largest
union, and other smaller unions marched in cities including Johannesburg, Cape Town and Durban,
Numsa spokesperson Castro Ngobese said.
"There are no talks at the moment and none are scheduled," he said. Workers are demanding a 12%
wage hike, double the inflation rate, while employers are offering 8%.
Local media reports earlier said Numsa had revised its demand down to 10% and employers had
raised their offer to 8.5%, but Ngobese said this was not true.
South Africa is still reeling from a five-month strike in the platinum mines that ended with a wage
settlement last week, but not before dragging the economy into contraction in the first three
months of the year.
Steel and metals manufacturing directly accounts for a fifth of the factory sector, and the impact on
the economy of the Numsa action will be heavier than that of the platinum strike, Barclays Africa
said in a note.
The latest strike will likely hit companies such as construction and engineering firms Murray &
Roberts and Aveng, both involved in building two crucial power stations for state-owned utility
Eskom.
Murray & Roberts, which is helping build steam generators for both power stations, said no work
was taking place at parts of the Kusile plant and only minimal work was being done at parts of the
Medupi station.
"Approximately 1 400 scheduled employees are not at work at Kusile. We have decided to not send
in any other employees to the site until we have further clarity," said Ed Jardim, a spokesperson for
Murray & Roberts.
Eskom expects to get the first unit of Medupi operating early next year but the strike could delay
that.
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Auto parts makers such as Dorbyl will also be hit, raising fears that a prolonged stoppage could
affect production in the important automotive sector.
As many as 20 companies supplying Toyota, Ford and General Motors are affected, said Ken
Manners, vice-president of the South African national automobile components industry body
NAACAM.
"We have taken contingency plans, looking at stocking up on parts and there has been greater inter-
company cooperation to try and create a buffer from the strike. The impact will really be felt if the
strike is prolonged, more than a week or two," Manners told Reuters.
A four-week strike in 2013 by more than 30 000 Numsa members at major auto makers cost the
industry about $2bn.
Eskom targeted
Numsa will also picket Eskom headquarters on Wednesday to press for wage increases. Eskom is
deemed an essential service, making strikes illegal.
But Numsa general secretary Irvin Jim hinted at the weekend that workers would defy the ban,
saying the union might have "no option but to allow our members to liberate themselves".
Other companies that could be affected include Africa's biggest packaging firm Nampak, electrical
cables maker Reunert and unlisted steel maker Scaw Metals.
Scaw Metals, one of the biggest steel makers in South Africa, said no production was taking place at
its plants because attendance was "very low".
"We are talking about probably 80% of employees not reporting for work," said Bheka Khumalo,
head of Human Resources.
Khumalo said the strike could result in revenue losses of about R33m a week and 20 000 tonnes
worth of output losses.
The rand was little changed while the share prices of companies affected had also moved little in
afternoon trade.
Numsa, once a political ally of the African National Congress, fell out with President Jacob Zuma's
government over policy last year.
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Online
Biznews.com - Biz News
South African engineering strike latest blow to sickly economy
01 Jul 14
http://www.biznews.com/briefs/2014/07/south-african-engineering-strike-latest-blow-sickly-economy/ JOHANNESBURG (Reuters) – More than 220,000 South African engineering and metal workers launched a strike over wages on Tuesday, hot on the heels of a crippling platinum dispute and dealing a further blow to an already weak economy.
Members of the National Union of Metalworkers of South Africa (NUMSA), the country’s largest
union, and other smaller unions marched in cities including the commercial capital Johannesburg,
Cape Town and Durban, NUMSA spokesman Castro Ngobese said.
“There are no talks at the moment and none are scheduled,” he said. Workers are demanding a 12
percent wage hike, double the inflation rate, while employers are offering 8 percent.
Local media reports earlier said NUMSA had revised its demand down to 10 percent and employers
had raised their offer to 8.5 percent but Ngobese said this was not true.
South Africa is still reeling from a five-month strike in the platinum mines that ended with a wage
settlement last week, but not before dragging the economy into contraction in the first three
months of the year.
The latest strike will likely hit the operations of companies like construction and engineering firms
Murray & Roberts and Aveng Ltd, both involved in building two power stations for state-owned
Eskom to mitigate South Africa’s energy shortage.
Auto parts makers such as Dorbyl will also be hit, raising fears that a prolonged stoppage could
affect production in the important automotive sector.
Ken Manners, vice president of the South African national automobile components industry body
NAACAM, said as many as 20 companies supplying Toyota Motor Corp, Ford Motor, and General
Motors are affected.
“We have taken contingency plans, looking at stocking up on parts and there has been greater inter-
company cooperation to try and create a buffer from the strike. The impact will really be felt if the
strike is prolonged, more than a week or two,” Manners told Reuters.
Power Utility also targeted
NUMSA will also picket Eskom headquarters on Wednesday to press for wage increases.
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Eskom supplies almost all the electricity for Africa’s most developed economy and is deemed an
essential service, making strikes illegal.
But NUMSA General Secretary Irvin Jim hinted at the weekend that workers would defy the ban,
saying the union might have “no option but to allow our members to liberate themselves”.
Other companies that could be affected include Africa’s biggest packaging firm Nampak, electrical
cables maker Reunert and unlisted steel maker Scaw Metals.
Scaw Metals, one of the biggest steel makers in South Africa, said no production was taking place at
its plants because attendance was “very low”.
“We are talking about probably 80 percent of employees not reporting for work,” said Bheka
Khumalo, head of Human Resources at Scaw Metals.
Scaw Metals, which supplies steel for mining and construction, employs about 5,000 people. Dlamini
said the strike could result in revenue losses of about 33 million rand ($3.11 million) a week and
20,000 tonnes worth of output losses. Steel and metals manufacturing directly accounts for a fifth of
the factory sector, and the impact on the economy of the NUMSA action will be heavier than that of
the platinum strike, Barclays Africa said in a note.
The rand was little changed while the share prices of companies affected had also moved little by
mid-day.
NUMSA, once a political ally of the ruling African National Congress, fell out with President Jacob
Zuma’s government over policy last year.
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Online
Fin24
Numsa: No negotiations scheduled yet
01 Jul 14
http://www.fin24.com/Economy/Numsa-No-negotiations-scheduled-yet-20140701
Johannesburg - More than 220 000 engineering and metal workers launched a strike over wages on
Tuesday, hot on the heels of a crippling platinum dispute and dealing a further blow to an already
weak economy. Members of the National Union of Metalworkers of South Africa (Numsa), the
country's largest union, and other smaller unions marched in cities including Johannesburg, Cape
Town and Durban, Numsa spokesperson Castro Ngobese said.
"There are no talks at the moment and none are scheduled," he said. Workers are demanding a 12%
wage hike, double the inflation rate, while employers are offering 8%. Local media reports earlier
said Numsa had revised its demand down to 10% and employers had raised their offer to 8.5%, but
Ngobese said this was not true. South Africa is still reeling from a five-month strike in the platinum
mines that ended with a wage settlement last week, but not before dragging the economy into
contraction in the first three months of the year. Steel and metals manufacturing directly accounts
for a fifth of the factory sector, and the impact on the economy of the Numsa action will be heavier
than that of the platinum strike, Barclays Africa said in a note. The latest strike will likely hit
companies such as construction and engineering firms Murray & Roberts and Aveng, both involved
in building two crucial power stations for state-owned utility Eskom. Murray & Roberts, which is
helping build steam generators for both power stations, said no work was taking place at parts of the
Kusile plant and only minimal work was being done at parts of the Medupi station.
"Approximately 1 400 scheduled employees are not at work at Kusile. We have decided to not send
in any other employees to the site until we have further clarity," said Ed Jardim, a spokesperson for
Murray & Roberts. Eskom expects to get the first unit of Medupi operating early next year but the
strike could delay that. Auto parts makers such as Dorbyl will also be hit, rising fears that a
prolonged stoppage could affect production in the important automotive sector. As many as 20
companies supplying Toyota, Ford and General Motors are affected, said Ken Manners, vice-
president of the South African national automobile components industry body NAACAM. "We have
taken contingency plans, looking at stocking up on parts and there has been greater inter-company
cooperation to try and create a buffer from the strike. The impact will really be felt if the strike is
prolonged, more than a week or two," Manners told Reuters. A four-week strike in 2013 by more
than 30 000 Numsa members at major auto makers cost the industry about $2bn.
Eskom target
Numsa will also picket Eskom headquarters on Wednesday to press for wage increases. Eskom is
deemed an essential service, making strikes illegal. But Numsa general secretary Irvin Jim hinted at
the weekend that workers would defy the ban, saying the union might have "no option but to allow
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our members to liberate themselves". Other companies that could be affected include Africa's
biggest packaging firm Nampak, electrical cables maker Reunert and unlisted steel maker Scaw
Metals. Scaw Metals, one of the biggest steel makers in South Africa, said no production was taking
place at its plants because attendance was "very low".
"We are talking about probably 80% of employees not reporting for work," said Bheka Khumalo,
head of Human Resources. Khumalo said the strike could result in revenue losses of about R33m a
week and 20 000 tonnes worth of output losses. The rand was little changed while the share
prices of companies affected had also moved little in afternoon trade. Numsa, once a political ally of
the African National Congress, fell out with President Jacob Zuma's government over policy last year.
Latest data released by Statistics SA on youth unemployment is alarming, 20 years into a working
democracy. The unemployment rate for youth aged between 15 and 36 has increased to 36.1% from
32.7% in 2009 with unemployment amongst black South Africans at 39.4% and white South Africans
at 9%. These high unemployment numbers challenge South Africa’s thinking regarding higher
education, forcing the focus to move from traditional qualifications to skills qualifications.
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Online
Engineeringnews.co.za - Engineering News
SA engineering strike latest blow to sickly economy
01 Jul 14
http://www.engineeringnews.co.za/article/sa-engineering-strike-latest-blow-to-sickly-economy-
2014-07-01/article_comments:1
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Online
Polity.org.za - Polity
SA engineering strike latest blow to sickly economy
01 Jul 14
http://www.polity.org.za/article/sa-engineering-strike-latest-blow-to-sickly-economy-2014-07-01
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Online
Sharenet.co.za – Sharenet
South African engineering strike latest blow to sickly economy
01 Jul 14
http://www.sharenet.co.za/news/South_African_engineering_strike_latest_blow_to_sickly_econom
y/5b0441b3d262c5d6f7a93c3f14f186f0
JOHANNESBURG (Reuters) - More than 220,000 South African engineering and metal workers
launched a strike on Tuesday and revived a 15 percent wage demand, in a further blow to an
economy already reeling from a lengthy platinum dispute.
As members of the National Union of Metalworkers of South Africa (NUMSA), the country's largest
union, marched in major cities, its leaders withdrew an earlier 12 percent demand because
employers had failed to respond positively, NUMSA spokesman Castro Ngobese said.
"Since the negotiations have collapsed we must revert back to our initial demand," he said.
Employers had 48 hours to respond and resume talks or face a prolonged boycott, he added.
South Africa is still catching its breath after a five-month platinum strike that ended last week, but
not before dragging the economy into a first quarter contraction.
Steel and metals manufacturing directly accounts for a fifth of the factory sector, and the economic
impact of NUMSA's action will be heavier than the platinum strike, Barclays Africa said.
The latest strike is likely to hit the likes of construction and engineering firms Murray & Roberts and
Aveng Ltd , both involved in building two crucial power stations for state-owned utility Eskom.
Murray & Roberts, which is helping build steam generators for both power stations, said no work
was taking place at parts of the Kusile plant and only minimal work was being done at parts of the
Medupi station.
"Approximately 1,400 scheduled employees are not at work at Kusile. We have decided to not send
in any other employees to the site until we have further clarity," company spokesman Ed Jardim
said.Eskom expects to get the first unit of Medupi operating early next year but the strike could
delay that.
AUTO PARTS SECTOR TO SUFFER
Auto parts makers such as Dorbyl are also in the firing line, raising fears that a prolonged stoppage
could affect production in the automotive sector.
As many as 20 companies supplying Toyota Motor Corp, Ford Motor, and General Motors are
affected, said Ken Manners, vice president of the South African national automobile components
industry body NAACAM.
"We have taken contingency plans, looking at stocking up on parts and there has been greater inter-
company cooperation to try and create a buffer from the strike. The impact will really be felt if the
strike is prolonged, more than a week or two," he told Reuters.
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A four-week strike in 2013 by more than 30,000 NUMSA members at major auto makers cost the
industry around $2 billion.
NUMSA will also picket Eskom headquarters on Wednesday to press for wage increases. Eskom
supplies almost all the electricity for Africa's most developed economy and is deemed an essential
service, making strikes illegal.
But NUMSA General Secretary Irvin Jim hinted at the weekend that workers might defy the ban,
saying the union might have "no option but to allow our members to liberate themselves".
Other companies that could be affected include Africa's biggest packaging firm, Nampak, electrical
cables maker Reunert and unlisted steel maker Scaw Metals.
Scaw, one of South Africa's biggest steel makers, said no production was taking place at its plants.
"We are talking about probably 80 percent of employees not reporting for work," said head of
human resources Bheka Khumalo.
Khumalo said the strike could result in revenue losses of about 33 million rand ($3.1 million) a week
and 20,000 tonnes of output losses.
The rand was slightly weaker while the share prices of companies affected had moved little in
afternoon trade.
NUMSA, once a political ally of the ruling African National Congress, fell out with President Jacob
Zuma's government over policy last year, limiting its ability to mediate.
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Online
Sharenet.co.za - Sharenet
South Africa''s striking NUMSA union says to resume wage talks
02 Jul 14
http://www.sharenet.co.za/news/South_Africas_striking_NUMSA_union_says_to_resume_wage_tal
ks/7405db40dd9d78dc6f7619b068a71794
JOHANNESBURG (Reuters) - Wage talks between South Africa's largest union, NUMSA, and
employers will resume on Thursday to end a strike by more than 200,000 engineering and metals
workers, the union's head said.
Another prolonged stoppage would hit auto parts makers such as Dorbyl and dent investor
confidence after a four-week strike last year by NUMSA cost the industry around $2 billion.
The NUMSA strike, which started this week, comes a week after platinum miners ended crippling
five-month stoppage that sent Africa's most advanced economy into contraction in the first quarter
of the year.
NUMSA is demanding wage increases of between 12 and 15 percent from more than 10,000
employers represented by the Steel and Engineering Industries Federation of Southern Africa
(SEIFSA).
"We will be meeting for talks on Thursday night, the principle is a double-digit increase," its general
secretary Irvin Jim told Reuters.
"We are dealing with workers who are earning as little as 5,400 rand ($500) a month, nobody can be
able to live on that."
U.S car-maker Ford had no plans to pull out of South Africa, but the labour environment was a
concern, said Jeffery Nemeth, chief executive of the company's local unit.
"This whole labour issue really doesn't help the global reputation of South Africa as a destination for
foreign direct investment," he said.
"We are continuing to operate and for sure we will be fine through the end of the week and then
we'll have to see what happens."
Scaw Metals, which makes more than 6 billion rand in annual revenue, said the strike would wipe
out about 200 million rand worth of weekly sales and as much 33 million rand in weekly profit.
NUMSA picketed power utility Eskom's Johannesburg headquarters on Wednesday. The union has
hinted it might strike at Eskom in defiance of a labour court order.
Jim said the union would not allow Eskom to "hide behind the law" but that for now its workers will
not down tools there and restrict their protest activity to picketing.
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The NUMSA strike has already affected work at Eskom's Medupi and Kusile power plants, where
construction and engineering firms Murray & Roberts and Aveng Ltd are doing building work, the
utility said.
As annual wage negotiations get underway in South Africa, clothing and textile union SACTWU said it had secured a 7.75 percent wage increase for its members, above the current inflation rate of 6.6 percent.
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Online
Biznews.com - Biz News
NUMSA strike: Wage talks to resume tomorrow
02 Jul 14
http://www.biznews.com/briefs/2014/07/numsa-strike-wage-talks-to-resume-tomorrow/
JOHANNESBURG (Reuters) – Wage talks between South Africa’s largest union, NUMSA, and
employers will resume on Thursday to end a strike by more than 200,000 engineering and metals
workers, the union’s head said.
Another prolonged stoppage would hit auto parts makers such as Dorbyl and dent investor
confidence after a four-week strike last year by NUMSA cost the industry around $2 billion.
The NUMSA strike, which started this week, comes a week after platinum miners ended crippling
five-month stoppage that sent Africa’s most advanced economy into contraction in the first quarter
of the year.
NUMSA is demanding wage increases of between 12 and 15 percent from more than 10,000
employers represented by the Steel and Engineering Industries Federation of Southern
Africa (SEIFSA).
“We will be meeting for talks on Thursday night, the principle is a double-digit increase,” its general
secretary Irvin Jim told Reuters.
“We are dealing with workers who are earning as little as 5,400 rand ($500) a month, nobody can be
able to live on that.”
U.S car-maker Ford had no plans to pull out of South Africa, but the labour environment was a
concern, said Jeffery Nemeth, chief executive of the company’s local unit.
“This whole labour issue really doesn’t help the global reputation of South Africa as a destination for
foreign direct investment,” he said.
“We are continuing to operate and for sure we will be fine through the end of the week and then
we’ll have to see what happens.”
Scaw Metals, which makes more than 6 billion rand in annual revenue, said the strike would wipe
out about 200 million rand worth of weekly sales and as much 33 million rand in weekly profit.
NUMSA picketed power utility Eskom’s Johannesburg headquarters on Wednesday. The union has
hinted it might strike at Eskom in defiance of a labour court order.
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Jim said the union would not allow Eskom to “hide behind the law” but that for now its workers will
not down tools there and restrict their protest activity to picketing.
The NUMSA strike has already affected work at Eskom’s Medupi and Kusile power plants, where
construction and engineering firms Murray & Roberts and Aveng Ltd are doing building work, the
utility said.
As annual wage negotiations get underway in South Africa, clothing and textile union SACTWU said it
had secured a 7.75 percent wage increase for its members, above the current inflation rate of 6.6
percent.
30 | P a g e
Online
Iol.co.za/business - Iol Business Report
Numsa, Seifsa resume wage talks
03 Jul 14
http://www.iol.co.za/business/news/numsa-seifsa-resume-wage-talks-1.1713487#.U-jXiOOSySo
Wage talks between the National Union of Metalworkers of SA (Numsa) and employers would resume today in an effort to end a strike by more than 200 000 workers at metal fabrication companies, Numsa head of collective bargaining Stephen Nhlapo said yesterday. Another prolonged stoppage would hit car parts makers such as Dorbyl and dent investor confidence after a four-week strike last year by Numsa cost the industry around R21 billion. The latest strike, which started on Tuesday, comes a week after platinum miners ended a crippling five-month stoppage that sent Africa’s most advanced economy into contraction in the first quarter. Numsa is demanding wage increases of between 12 percent and 15 percent from more than 10 000 employers represented by the Steel and Engineering Industries Federation of Southern Africa (Seifsa). “We will be meeting for talks on Thursday night, the principle is a double-digit increase,” Numsa general secretary Irvin Jim said. “We are dealing with workers who are earning as little as R5 400 a month; nobody can be able to live on that.” US car maker Ford had no plans to pull out of South Africa, but the labour environment was a concern, Jeff Nemeth, the chief executive of the Ford Motor Company of Southern Africa said. “This labour issue doesn’t help the global reputation of South Africa as a destination for foreign direct investment. “We are continuing to operate and we will be fine through to the end of the week; then we’ll see what happens.” Scaw Metals, which makes more than R6bn in annual revenue, said the strike would wipe out about R200 million worth of sales a week and as much R33m in profit weekly. Numsa picketed at Eskom’s Johannesburg headquarters yesterday and hinted it might strike at the the utility in defiance of a Labour Court order. Jim said the union would not allow Eskom to “hide behind the law”. However, for now its members would not down tools, but restrict their protest activity to picketing. The strike has affected work at the Medupi and Kusile power plants, where construction and engineering firms were doing building work, Eskom said. As annual wage negotiations get under way, the Southern African Clothing and Textile Workers union Sactwu said it had secured a 7.75 percent wage increase for members at carpet making firms. Numsa, once a political ally of the ruling African National Congress, fell out with President Jacob Zuma's government over policy last year.
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Online Newshub.org - Newshub ZA Numsa strike could tip SA into junk status – Moody’s 04 Jul 14 http://za.newshub.org/numsa_strike_could_tip_sa_into_junk_status_moody_s_1768692.html
The warning came as talks got under way to try to end the deadlock that has seen more than 220
000 metal and engineering workers, led by South Africa’s biggest union, the National Union of
Metalworkers of SA (Numsa), on strike since Tuesday.
Bloomberg reports Moody’s warned that strikes threaten economic growth and the government’s
ability to rein in debt.
“Continued weak investment, exports and overall growth will pose serious challenges to the
government’s efforts to rein in its budget deficit and stabilise its debt metrics, a credit negative for
the economically troubled country,” said Moody’s.
Moody’s has had a negative outlook on South Africa’s Baa1 credit rating since November 2011.
That’s two levels above Standard & Poor’s, which downgraded the nation’s debt on June 13 to BBB-,
a notch above junk status.
The strikes are making it difficult for South Africa to take advantage of a recovery in growth in its
main trading partners, such as Europe, Moody’s said.
“A few hundred workers were blocking one of the entrances to Medupi power plant and we had to
use rubber bullets to disperse them,” police spokesperson Ronel Otto told Reuters, adding that the
situation had been contained by the afternoon.
Numsa was meeting the main employers’ representative body, the Steel and Engineering Industries
Federation of Southern Africa, to try to end the strike that economists say could badly hit Africa’s
most advanced economy.
The stoppage is costing South Africa some R300 million a day in the wake of a five-month platinum
strike that dragged the economy into a quarterly contraction.
Numsa is demanding wage increases of between 12% and 15% – at least double the official inflation
rate – from employers represented by Seifsa.
Another employer body, National Employers Association of SA, which is due to meet Numsa today,
said its members would not agree to a double-digit wage increase.
“The principle is a double-digit increase. We are dealing with workers who are earning as little as R5
400 a month, nobody can be able to live on that,” Numsa general secretary Irvin Jim said.
32 | P a g e
US car maker Ford said the labour environment was a concern, but it was managing the effects of
the strike.
Scaw Metals, which makes more than R6 billion in annual revenue, said the strike would wipe out
about R200 million worth of weekly sales and as much R33 million in weekly profit.
33 | P a g e
Online
Citizen.co.za - Citizen
Numsa strike could tip SA into junk status – Moody’s
04 Jul 14
http://citizen.co.za/204957/numsa-strike-could-tip-sa-into-junk-status-moodys/
The warning came as talks got under way to try to end the deadlock that has seen more than 220
000 metal and engineering workers, led by South Africa’s biggest union, the National Union of
Metalworkers of SA (Numsa), on strike since Tuesday.
Bloomberg reports Moody’s warned that strikes threaten economic growth and the government’s
ability to rein in debt.
“Continued weak investment, exports and overall growth will pose serious challenges to the
government’s efforts to rein in its budget deficit and stabilise its debt metrics, a credit negative for
the economically troubled country,” said Moody’s.
EU growth
Moody’s has had a negative outlook on South Africa’s Baa1 credit rating since November 2011.
That’s two levels above Standard & Poor’s, which downgraded the nation’s debt on June 13 to BBB-,
a notch above junk status.
The strikes are making it difficult for South Africa to take advantage of a recovery in growth in its
main trading partners, such as Europe, Moody’s said.
“A few hundred workers were blocking one of the entrances to Medupi power plant and we had to
use rubber bullets to disperse them,” police spokesperson Ronel Otto told Reuters, adding that the
situation had been contained by the afternoon.
Numsa was meeting the main employers’ representative body, the Steel and Engineering Industries
Federation of Southern Africa, to try to end the strike that economists say could badly hit Africa’s
most advanced economy.
Double-digit increase
The stoppage is costing South Africa some R300 million a day in the wake of a five-month platinum
strike that dragged the economy into a quarterly contraction.
Numsa is demanding wage increases of between 12% and 15% – at least double the official inflation
rate – from employers represented by Seifsa.
Another employer body, National Employers Association of SA, which is due to meet Numsa today,
said its members would not agree to a double-digit wage increase.
“The principle is a double-digit increase. We are dealing with workers who are earning as little as R5
400 a month, nobody can be able to live on that,” Numsa general secretary Irvin Jim said.
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US car maker Ford said the labour environment was a concern, but it was managing the effects of
the strike.
Scaw Metals, which makes more than R6 billion in annual revenue, said the strike would wipe out
about R200 million worth of weekly sales and as much R33 million in weekly profit.
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Online
Engineeringnews.co.za - Engineering News
Africa to provide significant steel opportunities
11 Jul 14
http://www.engineeringnews.co.za/article/africa-to-provide-significant-steel-opportunities-2014-
07-11
Steel plant processing technology, equipment and services specialist SMS Siemag, a division of SMS
group, supplier of processing technology, equipment and services for the ferrous, ferroalloy and
nonferrous metals industries, says there is potential to establish new steel plants in Africa in the next
five years and hopes to capitalise on these developments.
SMS Siemag South Africa MD Pieter Bezuidenhout believes that, through its office in Johannesburg,
SMS group is well placed to provide processing plant equipment for new and existing steel mills and
metallurgical processing plants in the Southern African Development Community (SADC) region, as
well as in East and West Africa.
He says that market studies, undertaken by SMS group over the past three years, indicate that
between now and 2020, there will be a substantial increase in the shortfall between the amount of
steel produced in Africa and the amount of steel that the continent will require.
Additionally, SMS Siemag director Klaus Schmale adds that smelter engineering firm Metix, a division
of SMS Siemag, is particularly interested in assisting SADC governments to beneficiate base materials
such as iron-ore, chrome, manganese, nickel, lead, zinc and copper.
Bezuidenhout notes that SMS group is also in frequent discussions with State-owned finance
corporation the Industrial Development Corporation about all new initiatives pertaining to
beneficiation plants.
“It is important for us to support the beneficiation programmes of the South African government
and other Southern African governments,” he states.
Bezuidenhout adds that SMS group is in discussions with many Southern African governments at
various levels regarding the supply of processing technologies to assist in implementing
beneficiation strategies.
Schmale points out that SMS group has workshop partners in South Africa and the group has a long-
term plan to establish its own workshop capacity in the country within the next three years.
“Some of our make-or-buy (MOB) Level 1 components will always be manufactured from SMS
group’s key workshops, in Düsseldorf and Hilchenbach, in Germany; however, the SMS group
manufactures all non-Level 1 MOB components at various locations worldwide,” he says.
SMS group’s clients in South Africa include steel producer ArcelorMittal South Africa, JSE-listed steel
group Evraz Highveld Steel & Vanadium, JSE-listed aluminium products manufacturer Hulamin,
national oil company PetroSA, South African steel products manufacturer Scaw Metals, energy and
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petrochemicals group Sasol, all South African ferrochrome producers, such as Samancor, Hernic
Ferrochrome, International Ferro Metals and Glencore, as well as integrated titanium-ore and
titanium dioxide producer Tronox and flat stainless steel products manufacturer Columbus Stainless.
SMS group also provides these companies with process plant technologies, equipment, components,
spare parts and technical services.
Schmale says, for example, that SMS group is providing equipment for Glencore-Merafe Chrome
Venture’s Lion Ferrochrome Complex Phase 2 (Lion II) expansion project, in Limpopo.
The 360 000 t/y Lion II will increase Glencore-Merafe Chrome Venture’s total installed capacity to
more than 2.3-million tons a year.
SMS group has supplied electrode columns to the smelting plant, which was successfully
commissioned at end of May this year.
Schmale points out that, in the past three years, SMS group invested a “significant eight-digit
amount of euros” in its Hilchenbach workshop to improve the facility’s operational efficiencies.
Service Offering Growth
Schmale notes that many steel-processing companies have concentrated their efforts on
modernising and repairing existing equipment, instead of installing new equipment.
“One of the areas in which we are registering strong growth is our service division,” he states.
SMS group’s service offering includes, but is not limited to, the provision of training services,
efficiency improvement studies, analysis work, maintenance outsourcing work and the local
manufacture of spare parts, as well as on- and off-site repair services.
Further, Schmale says the SMS group has also supplied its key equipment, such as electrode columns
and copper roofs for furnaces, to the ferroalloys industry to increase plant efficiency and reduce
maintenance requirements.
He quips that “unfortunately, the SMS group’s equipment is working so well that there is no real
demand for spare parts.”
New Technology
Schmale states that SMS group also invests a “significant eight-digit amount of euros” in research
and development each year and is developing several new technologies for the steel- and metal-
producing industry.
SMS group is prototyping a primary energy melting (PEM) unit, which will be used for primary
materials such as scrap metals.
“The PEM is a new, cost-effective, ecofriendly shaft furnace for melting scrap, which exclusively uses
primary energy. The heat flows out of the shaft through a tap on the side into a second vessel and
this is where the required final temperature is set,” says Schmale, who adds that the first PEM unit
was installed at a test facility in Europe, in March.
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“Once the trials have been completed in the next 12 to 18 months, we intend to make PEM available
for other customers,” he adds.
Schmale points out that another new development of SMS group is the steady electric arc furnace
(S-EAF), which is a combination of electric arc furnace (EAF) and steady arc furnace technology,
featuring the continuous melting of various raw materials, without the need for frequent power-off
times which occur in conventional EAFs.
“This new technology results in lowest energy requirements and drastically reduced disturbances to
the electrical grid, which is a substantial benefit for Africa,” he concludes.
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Online
Constructionreviewonline.com - Construction Review Online
US$40million grinding plant for Ghana
30 Jul 14
http://constructionreviewonline.com/2013/11/28/us-40million-grinding-plant-for-ghana/
Scaw Metals has broken ground for its new 50, 000 t/y grinding plant in Tema, Ghana making it the company’s first West African manufacturing facility. The South African steel products manufacturer is establishing the US$40 million facility in partnership with Ghana-based Jospong Group of Companies and South Africa-based Guma Group and it is expected to become operational within 18 months. Present during the ceremony was the Chief Executive of the Ghana Investment Promotion Centre (GIPC), Mrs Mawuena ,Scaw Metals chairperson Ufikile Khumalo, South African Trade and Industry Minister Dr Rob Davies, Scaw Metals CEO Markus Hannemann, South African Minister of Foreign Affairs and owner of Scaw Metals Mr. Robert Gumede Scaw executive chairperson Ufikile Khumalo said they hold a 70 percent stake in the project with Jospong and Guma holding the balance. He added that the company’s partners would not only share in the benefits but would also be required to put up their share of the project funding. The consortium would also be given first preference to supply products and services during and after the facility’s construction. According to Scaw CEO Markus Hannemann, the Ghana facility would make use of the same roll form technology that is currently in use at the company’s Wadeville, Johannesburg facility. The new plant would produce grinding media in sizes ranging from 38 mm to 76 mm, with the larger sizes still to be imported from South Africa. However, if the demand for larger sizes increases, adapting the plant to also produce larger sizes will be the natural next step for Scaw. During the construction phase, more than 100 jobs would be created with 42 direct jobs to be created once the plant is operational.
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Online Bdlive.co.za - Business Day Live Source: Once-mighty Anglo mulls mine selloff 27 Jul 14 http://www.bdlive.co.za/businesstimes/2014/07/27/once-mighty-anglo-mulls-mine-selloff
ANGLO American, which once dominated the South African economy, may exit more mines in the
country as it looks to sell underperforming assets in a drive to increase shareholder returns and
restore investor confidence.
The diversified mining group, which once had interests in 98 JSE-listed companies in sectors ranging
from diamonds and steel to paper and media, this week put several of its Rustenburg platinum
assets up for sale. It also reached an agreement to sell its stake in Lafarge Tarmac in the UK.
The proposed platinum sale, not likely to be finalised before the end of next year, will add to the list
of Anglo exits in recent years, notably from AngloGold Ashanti, Tongaat Hulett, Mondi, Hulamin and
Scaw Metals. It bought a majority stake in Kumba in 2003, and increased its stake in diamond
producer De Beers in 2012.
There are more divestments to come: Anglo has tagged 31 other assets as “value destructive”, some
of which it has earmarked for disposal as it aims to generate returns on capital employed of 15% in
2016, up from 10% in the first half. Its platinum unit and its coal businesses in Australia and Canada
reported returns of 0%.
While CEO Mark Cutifani declined to name specific assets, he denied reports that Anglo wanted to
sell its 40% stake in Samancor, saying it was generating returns of more than 20%. “We like
manganese, and we like our position and expect to continue as we are. We are not selling the asset,”
he told reporters on a conference call.
SBG Securities said this week that future disposals might include Kleinkopje, a coal mine near
eMalahleni, and diamond operations Kimberley Mines and Voorspoed. When opened near
Kroonstad in 2008, Voorspoed was the first new diamond mine built in the country in nearly 20
years.
Cutifani said Anglo was not under pressure to sell assets as it had a strong balance sheet. “We are
not in fire-sale mode. We will take the right opportunities to move out of those assets so that where
they land they will be successful. We have not made final calls on a number, but we will be
opportunistic,” he said on the call.
Anglo, which has lagged its peers in recent years, had been making “good progress” in achieving its
targeted returns, Cutifani said. The five-month platinum strike in South Africa and significant
investments in Brazil in Minas-Rio, which is expected to ship its first iron ore in December, and Barro
Alto, a nickel project, had a negative impact on returns.
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Despite the proposed platinum disposals, Anglo still relies heavily on its South African operations. Its
Kumba stake contributed 40% to first-half operating profit of $2.9-billion, and it will spend about
35% of its capital in the country this year. Its copper operations in Chile and Peru contributed 26% to
operating profit. Lower commodity prices led to a $1-billion decline in overall operating profit.
Anglo is negotiating with Eskom over the construction of New Largo, a coal mine to feed its Kusile
power station in Mpumalanga, and has started building a R20-billion underground diamond mine at
Venetia in Limpopo. Its R8.5-billion Kolomela iron-ore mine in the Northern Cape, which was opened
in 2012, was one of the star performers in the first half.
Since Cutifani took over in April last year, vowing to make Anglo attractive again to investors, it
continues to underperform. Its share price in London has fallen 6.3%, compared with increases of
8.8% for BHP Billiton, 11.6% for Rio Tinto and 5.6% for Glencore.
On Friday, fund manager Vestact said it continued to prefer BHP Billiton to Anglo as it was trading at
a lower earnings multiple and had a higher dividend yield. “Their assets are better, and energy is
more attractive to us than diamonds and platinum,” it said.
Neasa will go to the Labour Court if the deal is extended to all companies, he said. - Bloomberg News
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Online
Iol.co.za/business - Iol Business Report
SA carmakers resume output
30 Jul 14
http://www.iol.co.za/business/companies/sa-carmakers-resume-output-1.1727910
Johannesburg - Carmakers including General Motors and Ford Motor will resume production at their South African plants tomorrow as employees in the metals and engineering industry return to work after a four-week strike. General Motors is “planning to run at normal production” after a stoppage at its plant in Port Elizabeth, Eastern Cape, spokeswoman Denise van Huyssteen said by phone. Dearborn, Michigan-based Ford and Toyota Motor of Japan plan to increase the number of shifts to compensate for production lost during the walkout, the companies said. The strike led by the National Union of Metalworkers of South Africa affected the automotive industry as supplies from spare-parts manufacturers dried up. About 220,000 South African metalworkers are returning to work this week after labour groups agreed to a three-year wage deal, ending a stoppage that threatened growth in the continent’s second-biggest economy. “We have lost approximately 4,000 units,” Ford spokeswoman Alisea Chetty said in an e-mailed response to questions. “We plan to increase our production over the next few months to recoup the lost units.” Bell Equipment, a manufacturing company based in Richards Bay, near Durban, was among producers that reported the return of striking employees today. Plans are now under way to restore lost output, it said. The majority of striking employees at Scaw Metals Group, 74 percent owned by South Africa’s Industrial Development Corporation, also returned to their jobs, according to the company. Deal Accepted The walkout started on July 1 and cost the manufacturing and engineering industries about 300 million rand a day, according to the employers. The Steel and Engineering Industries Federation of Southern Africa last week offered lowest earners a 10 percent annual wage increase for three years to end the strike, a deal that’s been accepted by Numsa and smaller labour groups such as Solidarity. That compares with an annual inflation rate of 6.6 percent in June, unchanged on the previous month. South Africa’s unemployment rate, the highest of more than 40 emerging markets tracked by Bloomberg, increased to 25.5 percent in the second quarter.
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“We urge all our members to report for work,” Irvin Jim, general secretary of Numsa, told reporters in Johannesburg yesterday. “The settlement offer has been overwhelmingly and unanimously accepted by our members.” Economy Suffered The metalworkers strike affected production at about 12,000 companies including construction and engineering group Murray & Roberts, beverage-can maker Nampak, as well as international carmakers. The strike, which followed a five-month work stoppage at platinum mines, will curb 2014 economic growth by at least 0.3 percentage point, said Mike Schussler, chief economist at research group Economists.co.za. “There is no doubt that the economy suffered major direct losses in this strike,” Schussler said by phone today. “The indirect impact, like carmakers which could not get components, could be even bigger.” The rand weakened 0.3 percent to 10.5967 against the dollar as of 6:04 p.m. in Johannesburg. The National Employers’ Association of South Africa, which represents about 3,000 small- and medium-sized companies, won’t sign the agreement today as its members can only afford an 8 percent increase, chief executive Gerhard Papenfus said by phone.
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BROADCAST
ANN7 - Vuka Africa
01 Jul 14
Numsa strike action begins
The National Union of Metalworkers of South Africa will today lead more than 200 000 workers in
the metal sector in strike for a double digit wage increase. The union is demanding a 12% salary
increase, the scrapping of labour brokers and a one year bargaining agreement.
CNBC Africa
03 Jul 14
Wages talks continues
The NUMSA is strike is currently underway, talks resume between employers and the striking
NUMSA members. The union is adamant that it will not accept anything below 15% wages increases
across the board and the stopping of labour brokers.
CNBC Africa - Open Exchange
04 Jul 14
Market update
A report on the day's markets - NUMSA is strike is currently underway
SABC 2 - News @ 17:30 (Tswana)
10 Jul 14
Numsa meeting its members on latest wage offer
Numsa is currently consulting its striking members in the steel and engineering sector about the
latest wage offer from the employers affiliated to the Steel and Engineering Federation of South
Africa (SEIFSA)
SABC 2 - News @ 19:00 (Xhosa)
10 Jul 14
NUMSA meeting its members on latest wage offer
Numsa is currently consulting its striking members in the steel and engineering sector about the
latest wage offer from the employers affiliated to the Steel and Engineering Federation of South
Africa (SEIFSA)
SABC 3 - Business News Update
10 Jul 14
NUMSA keeping mum about the details of the new offer
Metalworker union NUMSA is currently consulting its striking members in the steel and engineering
sector. It is discussing the latest wage offer from employers affiliated to the the Steel and
Engineering Federation of South Africa.
44 | P a g e
SABC 3 - News @ 18:30
10 Jul 14
Numsa meeting its members on latest wage offer
Numsa is currently consulting its striking members in the steel and engineering sector about the
latest wage offer from the employers affiliated to the Steel and Engineering Federation of South
Africa (SEIFSA).
SABC News - News @ 1
10 Jul 14
NUMSA keeping mum about the details of the new offer
Metalworker union NUMSA is currently consulting its striking members in the steel and engineering
sector. It is discussing the latest wage offer from employers affiliated to the the Steel and
Engineering Federation of South Africa.
SABC News - Prime Time News
10 Jul 14
Numsa meeting its members on latest wage offer
Numsa is currently consulting its striking members in the steel and engineering sector about the
latest wage offer from the employers affiliated to the Steel and Engineering Federation of South
Africa (SEIFSA).
SABC News - Business News
10 Jul 14
NUMSA meeting its members on latest wage offer
NUMSA is currently consulting its striking members in the steel and engineering sector about the
latest wage offer from the employers affiliated to the Steel and Engineering Federation of South
Africa (SEIFSA).
SABC News - Your World
10 Jul 14
Numsa consulted its striking members about the latest wage offer
Numsa on Thursday consulted its striking members in the steel and engineering sector about the
latest wage offer from employers affiliated to the Steel and Engineering Federation of South Africa,
SEIFSA. The outcome of the consultation will determine whether the near two week long strike is
called off or continues indefinitely.
SABC News - Morning Live/SABC 2 Simulcast
11 Jul 14
NUMSA rejects employers demand of assurance
NUMSA has rejected the employers demand of an assurance that the union won't strike on any issue
during the term of a wage settlement.