Karen Harverson
Foundry engineering and rolled steel producing group=20 Scaw Metals is investigating the possibility of=20 expanding into South America and may acquire a foundry=20 operation to supply the Chilean mining industry with=20 mining consumables such as mill liners and gauging=20
“It’s still in the early stages but we are looking to=20 diversify into other important mining areas worldwide as=20 we’ve outstripped the consumption capacity of the local=20 mining industry,” said managing director Tony Harris.
The company plans to spend R230-million to R300-million=20 in capital expenditure this year to replace=20 technologically obsolete equipment in its rolling mill=20 operation and meltshop. Included in the capex is a=20 R185-million direct reduction iron (DRI) kiln under=20 construction and due for commissioning in December 1996.
The DRI plant will provide extra iron-making capacity=20 and relieve Scaw’s dependence on scrap iron, used as a=20 raw material in its foundry operation.
Speaking at Anglo American Industrial Corporation’s=20 (Amic) interim results, Harris said the company was=20 involved in a rolling mill upgrade project to allow the=20 production of small diameter bar. The project is managed=20 by Davy International and uses Swedish slit rolling=20
Scaw reported a five percent increase in earnings for=20 the six months to June 1995 to R58-million but Amic=20 chairman Leslie Boyd said the increase was admirable=20 considering the high base from which Scaw was operating=20 and the political violence which had affected=20 operations. Its turnover to June 1995 was R532,9- million, two percent higher than the same period last=20