Modern Mining May 2015

COMPANIES

challenging market

five years, although this will be dependent on market conditions. Certainly the IDC is very supportive of our plans to remain at the leading edge of steel products manufacture and to grow the business both in Africa and internationally.” As a private company, Scaw has no obli- gation to produce annual reports but it does so. The most recent was for the year ending 31 March 2014 and reveals a group that was in extremely good shape at that point, given weak local demand over most sectors combined with increased import competition. Revenue for the 12-month period was R6,5 billion while earn- ings (before interest, tax and depreciation) were R361 million, an improvement of 10 % over the corresponding prior period. Capex over the 12 months amounted to R356 million. According to the annual report, export sales accounted for 23 % of total revenue. “We are hoping to grow this figure considerably,” says Hannemann. “Geographical diversification is an important part of our strategy, particularly given the fact that one of our key markets – gold mining in South Africa – is in long-term decline. Africa offers us the biggest growth potential with the areas that look especially promising being West Africa and the Central African Copperbelt region of Zambia and the DRC. But we certainly don’t exclude the over- seas market. We already have a presence in Italy, where we own 31 % of GSI Lucchini,

Above: Scaw offers the full spectrum of grinding media products for mining including high alloy cast grinding media and forged steel grinding media. Seen here are forged steel balls been manufactured.

Left: Scaw’s Wire Rod Products Division is a

leading manufacturer and distributor of specialised commercial steel ropes, wire, PC strand and chains for applications in mining (and other industries).

May 2015  MODERN MINING  39