• Chairperson's report

    The steel and foundry industry in South Africa continues to be faced with competition from cheap imports, low and fluctuating order books from the rail operators, ageing plant and equipment as well as a low-skilled workforce.

    Read more Executive chairman:
    Ufikile Khumalo
  • CEO's report

    The group is pleased to have achieved a full year of operation without a single fatality. We are proud of our strong safety ethic and I am grateful to every employee for making this possible.

    Read more CEO:
    Markus Hannemann
  • CFO's report

    The group spent R288 million (2014: R356 million) on capital expenditure during the period to maintain, improve and expand production capacity.

    Read more CFO:
    Patrick Malaza

Our commitment to integrated reporting

This is Scaw’s second voluntary integrated report. It outlines our track record to date and maps our forward-looking strategy. Our aim is to provide you, the reader, with a comprehensive review of how Scaw creates sustainable value by providing insight into the group’s strategy, changes in the external environment and the consequent risks and opportunities. The report is a reflection of our aspiration to the highest reporting standards.

Who we are

With roots dating back to the 1920s, Scaw was formed from the merger in 1998 of two steel manufacturing giants, Scaw Metals and Haggie Limited. In November 2012, the IDC acquired a 74% stake, driving renewed growth and revitalising our business.

Read more

Highlights and challengesCommenced R210 million emission control project at
Union Junction Cast Products plant

Key highlights

  • Sustainable SHE programme delivering continuous improvement
  • Zero fatalities recorded
  • Commenced R210 million emission control project at Union Junction Cast Products plant
  • Received all required air emission licences
  • Grinding media, cast products and wire rod products and rolled products verified as Ecospecifier Verified Product – certifying the products to contribute to Green Building credits
  • B-BBEE rating of level 3 maintained
 

Key challenges

  • Under difficult circumstances Scaw’s revenue decreased by 3% to R6,3 billion
  • Partly as a result of the metals and engineering strike which cost the group more than R33 million a week
  • Metals and engineering industry’s four-week strike resulted in temporary closure of certain operations
  • Five-month platinum strike depressed demand
  • Ongoing import threat, particularly cheap subsidised imports from India and China
  • Lifting of import duties on Chinese chain products
  • Consistency of energy supply
  • Availability of good quality scrap at competitive pricing

Values and strategy

Scaw is on an exciting journey of transformation. Reflecting this, we have new values which, together with our vision, demonstrate our commitment to remaining a sustainable, growth-oriented and profitable South African business.

Our vision

Be a South African-led, globally competitive and responsible beneficiator of key raw materials into secondary value-added steel products.

Our new values

Our new values are input-output focused, ie the behaviour derived from within will lead to the output that we require which will in turn drive the cultural changes that we seek as a group.

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Sustainability

Case study

Bathabile Mosala is a training instructor in the Training and Development department and joined Scaw in 2002 as an engineering clerk. Her managers describe her as “a self-starter who takes the initiative and does her best.”

Our people

We regard our almost 6 800 employees as critical to achieving our strategic objectives, especially as we operate in an industry where skills are scarce.

SHE

Our group values guide our approach to SHE, prioritising the protection of our people and the environment through leadership, education and collaboration as we work towards zero harm.

Annual report & downloads 2015

Individual sections or the full report available as PDFs and useful links.

Full integrated annual report

(7 mb)