Brics account for 60% of global foundry market

Brazil, Russia, India, China and South Africa (Brics) collectively accounted for 60% of the global foundry market, withChina leading the way with output of over 42-million tons at its 30 000 foundries in 2012.

Worldwide production in 2012 was 100.8-million tons from nearly 51 000 foundries, South African Institute of Foundrymen CEO John Davies, who attended the Brics Foundry Forum, in India, in February, said this week.

South Africa produced 374 000 t at its 180 foundries.

He pointed out that although foundries worldwide recorded growth of 2.3% in 2012, the majority – 20 out of 37 – of countries with foundry industries reported contraction.

“South Africa was one of eight countries which reported contraction greater than 10%, while 11 countries showed growth in their foundry industries during this period,” Davies said.

Meanwhile, he noted that South Africa’s foundries had been found to have higher labour costs than India-based foundries; however, productivity levels were similar in high-pressure diecasting foundries.

Casting Services’ Carl Reinhard explained that most South African foundries operated with labour costs at around 30% of total yearly sales.

“Given the Indian foundries’ extremely low labour costs compared with South Africa, Indian foundries enjoy a cost advantage of up to 24% over SA foundries,” he said.

Davies added that: “It would seem that South Africa incurs a higher cost for lower qualifications and skills than the other Brics countries at present, which possibly contributes to higher labour costs per unit of output. This, in turn, impacts the overall productivity indicator.”