Local foundries sector needs US$100 million for retooling
Zimbabwe Institute of Foundries (ZIF), says the local foundries sector needs funding to the tune of US$ 100 million for retooling purposes to boost competitiveness which comes from inefficiencies on the back of obsolete and outdated technologies the sector is currently using, Mining Zimbabwe can report.
A foundry is a metal casting manufacturing facility where metals are cast into shapes by melting them into a liquid, pouring the metal into a mould, and then removing the mould material once the metal has set and cooled. Aluminium and cast iron are the most commonly treated metals.
Foundry casting offers several major advantages over other metal-forming processes. First and foremost, it’s an incredibly cost-effective way to create large numbers of parts quickly and efficiently. With one mould, hundreds or even thousands of identical parts can be produced in just a few hours a task that would otherwise require significant time and labour to complete. Adding to that foundries can create complex parts that would be difficult or impossible to make using other methods.
The foundry sector plays a crucial role in Zimbabwe’s industrial landscape, serving as the backbone of various industries like mining, agriculture, and manufacturing. It provides essential components and equipment, making it vital for the country’s economic growth and development. They produce diverse cast components, including iron, steel, and aluminium castings, with an annual production estimated to be around 40,000 tonnes.
However of late the local foundries sector has been in a deplorable state facing a myriad of bottlenecks among them the availability of raw materials and the country’s unreliable power supply which have all affected production. Chief amongst them the insufficient investment in modern technology and infrastructure, which have limited production capacity as many local foundries still rely on outdated methods, hindering their efficiency and competitiveness.
Speaking to Mining Zimbabwe on the sidelines of a ZIF summit held in the capital recently ZIF Chief Operations Officer Dosman Mangisi said for the sector to be competitive US100 million is needed for retooling and investment in modern technology.
”The foundries that have expressed the need of funding the money is around 15 million USD but retooling of the sector in full scale there is need of US$100 million to say we have a foundry with the whole value chain and latest technologies,”
”The challenges the foundries sector right now apart from raw materials is on the retooling side. Old equipment our casting ratio with other world is way low for example, South Africa is at 1:10, India is at 1:60, Europe 1:40 China 1:50. The Government should look into retooling and assist in technology. If we look elsewhere the Britain government gave money to the foundries for retooling, upgrading to new technology and efficient use of energy. There is an urgent need to change the technology and equipment that we are using because we are using 3 times more energy. As a result, we need funding to get new efficient technology and working capital as well,” Mangisi said.
Over the years the modern foundry industry has been rapidly evolving, with new technologies emerging that can significantly improve efficiency, productivity, and quality. Some of the key modern technologies that are essential for a competitive foundry in today’s market include Computer-Aided Design (CAD) and Computer-Aided Manufacturing Automated manufacturing processes, for example, the 3D modeling software. As labour is one of the biggest cost drivers in the industry investment in robotics and automation reduces labor costs which will increase the foundry’s profitability.
Meanwhile, the industry is currently battling an influx from imports competition from imported castings, particularly from South Africa, which is cheaper due to economies of scale. However, despite the challenges, the Zimbabwean foundry sector holds immense potential for growth with increased investment, technological advancements, and improved resource management.
According to industry experts, the sector can increase production capacity and efficiency through modernizing equipment and adopting new technologies can significantly boost production output and reduce costs. The sector also has the potential to expand into new markets. Through focusing on quality and niche markets, foundries can explore export opportunities and diversify their customer base.
Also, there is potential for export to regional markets which is currently being affected by the government ban on the export of scrap metals. Prior to the ban, the country exported approximately 40,000 tonnes of scrap metal annually, generating millions of dollars in revenue. However, the export also contributed to a shortage of scrap metal for local foundries, forcing them to either ration their production or import raw materials at higher prices.
As ZIF is pushing for import substitution Mangisi implored the government to address policy issues chief amongst the the import substitution as increased local production of castings can help reduce reliance on imported components, saving foreign exchange and promoting self-sufficiency.
”We also call on the authorities to address the issues to do with policy remember we were of domestic pricing the minister spoke of subsiding and took it as a serious issue. There is also the issue of import substitutions government is paying attention but they should quickly look into that and also open doors for this key critical industry of metals so that we have enough time to sit down and share,” he said.