The Department of Trade and Industry (DTI) has established the National <link _top>Foundry Technology Network (NFTN) as a key <link _top>foundry industry support initiative.
The aim of the network is to facilitate the development of a globally competitive South African <link _top>foundry industry through appropriate skills training, technology transfer, and diffusion of state-of-the-art technologies.
The NFTN was born out of the initial concept of a National <link _top>Casting Technology Centre. The DTI approved the concept towards the end of 2007, providing funding of R15,4-million for the establishment of the NFTN, with a total funding of R38-million to be provided over three years.
NFTN project leader Richard Beän explains that the NFTN is a coordinating office overseen by a steering committee consisting of a number of entities, namely the South African Institute of <link _top>Foundrymen (Saif), the Aluminium Federation of South Africa, the University of Johannesburg (UJ), the Council for Scientific and Industrial Research (CSIR), as well as two industry representatives.
The CSIR has been contracted by the DTI to undertake the establishment and operationalisation of the NFTN, in close collaboration with industry and other stakeholders.
The NFTN is currently based at the CSIR, as it is not an independent entity yet, but will become a section 21 company towards the end of October.
“It is important to note that the NFTN is not implementing any physical capabilities. Rather, it is a network using existing service providers, only creating new ones outside the NFTN if they are not already in existence,” explains Beän.
He adds that if there is a specific need for training that is not currently offered, the NFTN will acquire or develop a course and find a service provider to present the course. The organisation’s role is to facilitate service provision and support industry through existing providers, such as State-owned mineral technology researcher Mintek, the CSIR, consultants or universities.
Global Competitive Market
Beän says the overriding objective of the NFTN is to increase the global competitiveness of the South African <link _top>foundry industry through the provision of appropriate services and effective service delivery.
“Given the competitiveness squeeze that South African industry finds itself in, industrial upgrading is a logical progression in order to avoid cutthroat price competition as certain parts of manufacturing are becoming commoditised, particularly owing to a combination of global trade liberalisation and pressure from both Chinese and Indian firms, in particular,” says Beän.
He adds that the effect of this competitiveness squeeze was felt predominantly in the <link _top>foundry, and <link _top>castings industry where the industry has halved from 400 companies to fewer than 200 firms, over the last ten years.
Despite this loss of capacity, the <link _top>foundry industry remains an important sector in the manufacturing value chain. Currently, it employs 15 000 workers, produces 500 000 t/y of <link _top>cast products and has an annual turnover of about R10,5-billion. Moreover, the <link _top>foundry industry underpins other important priority sectors such as automotive and petrochemicals.
Beän explains that price increases, as well as exchange rates and energy issues are exacerbating the effect of the global competitiveness squeeze. Low rates of capital investment, the absence of industrywide skills development and training initiatives, and uncompetitive input pricing, particularly concerning <link _top>scrap metal, are also challenges.
In order to manage these challenges, technological infrastructure is needed where fixed costs of equipment are too high for individual firms to invest in. This would have significant technological spillovers into the entire manufacturing sector.
He says that the NFTN aims to assist in making the <link _top>foundry industry more globally competitive, which includes helping the businesses to compete nationally and internationally.
International best practice dictates that tooling and <link _top>casting capabilities are very important in building a successful manufacturing sector. Beän explains that the NFTN collaborates with the National Tooling Initiative, as tooling is important to the <link _top>casting process.
Industry Support
The NFTN aims to provide technical <link _top>foundry support, which will add value to the industry, eliminate <link _top>waste, solve daily <link _top>foundry problems, and enhance productivity. The NFTN hopes to be able to send experts into <link _top>foundries to identify troubleshooting, and provide support and advice.
Beän says the NFTN is also in the process of establishing a panel of experts, who will be available for support to the industry through the NFTN website, which will be valuable for smaller <link _top>foundries.
An important project in the aluminium industry is the arrival of an Australian <link _top>high-pressure die casting specialist in September, in conjunction with the Automotive Industry Development Centre, to promote the <link _top>high-pressure die casting industry. For the ferrous <link _top>foundries, another inter national expert from The Foundation for Scientific and Industrial Research at the Norwegian Institute of Technology will visit South Africa.
Another aim of the NFTN is to support small, medium-sized and microenterprises (SMMEs) and black economic-empowerment companies. It promotes the technology empowerment of previously disadvantaged individuals, and assistance will be provided to industry skills incubators. The NFTN will also attempt to facilitate the outsourcing of the noncore components of larger businesses to smaller ones and groups of SMMEs will be offered opportunities to collaborate on new processes or products.
Beän says it is important to expose SMMEs to new technologies through training, knowledge transfer and dissemination.
“The NFTN will manage and coordinate information dissemination and technology diffusion through its website and roadshows. Towards the end of September, mini provincial launches of the NFTN will take place in Gauteng, KwaZulu-Natal, the Western Cape and the Eastern Cape to expose the network to industry. At these workshops, the NFTN will present all its activities and get feedback from industry,” says Beän.
The NFTN promotes the <link _top>foundry industry and careers in the industry through exhibitions, competitions and other initiatives at schools. Beän says the NFTN is working at attracting a flow of new students into the industry and getting older members to transfer their knowledge.
Training and Research
The NFTN also tries to provide relevant practical and theoretical training in order to increase the skills of <link _top>foundry personnel, and ensure a constant flow of skilled trainees into the industry. Beän says the universities are involved in providing professional training and Saif offers a course on <link _top>foundry activities. The NFTN is in the process of sourcing international industry-related courses, but will also develop some through local service dividers.
The NFTN is collaborating with the UJ and industry associates to establish a career path for foundrypersons, which involves different courses accredited by the Manufacturing, Engineering and Related Services Education and Training Authority. The NFTN is also striving to establish foundryperson learnerships in collaboration with industry and educational institutes.
The NFTN aims to provide relevant management and leadership training for the <link _top>foundry industry. This includes training in leadership, change management and people management. Beän says <link _top>foundries often focus on the product, but fail to pay enough attention to the strategic side of business. International studies have identified this as a priority in the industry.
The NFTN will facilitate relevant <link _top>foundry research and development, which will enhance technology innovation and transfer. This includes medium- to long-term fundamental research, collaborating with Mintek, the CSIR, and universities to develop innovative processes that can be transferred to industry.
Beän concludes that the important aim of the NFTN is to develop, facilitate, assist and support initiatives that can have a direct impact on the industry.
