Dcd by East Coast Promotions

COMPANY PROFILE

2013

DCD Wind Towers

Wind power is finally being realised

CompANY PROFILE

Wind power is finally being realised Editorial: Joe Forshaw Production: Leslie Kemp

As the 23,000m2, R300 million DCD Wind Towers manufacturing facility nears completion, excitement in the renewables industry is growing and many people in the Eastern Cape are hailing the project as the start of triumph for local manufacturing. All this and the factory is still two months away from fabricating its first product…

After years of planning and development, it seems that the true potential of wind power in South Africa is now starting to be realised. The country’s

into a new substation on the site. This substation will then feed into the Fitchards Corner substation which will then feed, via the Nelson Mandela Bay municipality, into the national grid.

first commercial wind farm, The Van Stadens Wind Farm near Port Elizabeth in the Eastern Cape, started supplying power to the national grid at the end of November. This is of course hugely exciting for the renewable industry in South Africa, an industry which has faced its fair share of challenges while getting off the ground. Initially, just one of the Metrowind Sinovel turbines has supplied electricity but the other eight will come online over the next two months in the run up to the original target date for full commission, February 1st 2014. Eskom will assist in getting the power onto the national grid and so far, the consensus is that this is a huge step forward for the wind industry and the Eastern Cape. The electricity that is generated by the wind farm will feed

LOCAL IMPACT

PAGE 2 DEC 13

This is great news for the Eastern Cape, and especially the Blue Horizon Bay and surrounding areas, but there is one company who will have kept a closer eye on this news than most and that is DCD Wind Towers. DCD Wind Towers is a subsidiary of DCD’s Mining and Energy division (featured in IndustrySA December 2012 and July 2013) and the company is very active in the renewable industry. This was demonstrated back in March when construction on a R300 million wind tower manufacturing facility began. In July, DCD Mining and Energy Marketing Manager, Henk Schoeman, told IndustrySA that the company was investigating the possibility of amending original designs to

DCD Wind Towers

©BMG raise the potential output levels for the facility. “The factory has been designed to manufacture around 120 towers each year. We are investigating whether or not we can increase capacity and it looks as though we will be able to increase to around 180-200 towers per year,” he said. “The wind turbine towers will vary in size, ranging between 80 and 120 meters, with individual sections weighing between 40-60 tons.” Since we spoke to Schoeman, work has moved at a dramatic pace and now the facility is close to completion but the impact on the local economy has proven to be more valuable than original projections suggested. “It is important for the Eastern Cape as it will create around 600 jobs during construction and we will employ 150 operational staff when the factory is up and running,” Schoeman said. He also said that the effect would be felt throughout the supply chain, with local businesses benefitting too, “In the

future we will create a supply chain and support smaller local companies to assist with supply of components for the factory. It is without a doubt a great injection of work and opportunity for the local community.” Many of the people who have benefitted from the project have been from the Nelson Mandela Bay municipality and Ayanda Vilakazi, Coega Development Corporation (CDC) Head of Marketing and Communications says that the pace of the development is down to the skill of the local infrastructure and construction specialists. “Investors are given a choice whether or not to use Coega’s infrastructure and construction services when they decide to set up shop in the Coega IDZ,” he said in a statement. “The pace at which DCD is going up is an indication of the quality and speed of Coega’s expert team. In addition, we are able to ensure that on projects such as these that small construction firms also gain a share of the work. The aim is for SMMEs (small, micro, medium-sized enterprises) to benefit

DEC 13 PAGE 3

CompANY PROFILE

from 35% of CDC’s procurement.” The CDC is proud to state that so far, the materials used in the construction process amount to 236 tonnes of reinforcement, 1896 tonnes of structural steel and 8440m3 of concrete and, of course, when the facility is fully operational, it will contribute further to the provision of local content for the wind energy industry in South Africa.

HIGH-SPEC FACILITY You may think that the company has fast-tracked construction to get the factory from nothing to working in just over 11 months but you would be wrong. Obviously, safety and quality remain some of the top priorities and a number of achievements have already been gained as the factory nears completion. During construction, the factory has gained compliance orders from Aspirata, earned more than 20,000 injury free hours, assisted SMMEs and sub-contractors with approval of their environmental health and safety files and has had minimal detrimental impact on the local environment. CDC Infrastructure Project Manager, Bruno Ponzo, said that the goal was still to get the factory ready for February so that DCD could begin supplying to its first two customers. He also explained that the facility would not drain the national grid of all of the valuable electricity that its products will help to create as it has been put together with ‘green objectives’ in mind.

PAGE 4 DEC 13

“An example of such is the introduction of natural light shafts in the façade walls and the use of passive natural ventilation elements. The on-site offices will also make use of solar control devices and performance glazing to reinforce the aesthetic aspects of the structure,” he said. The CDC has long been keen to position the IDZ as a centre for renewable energy projects in the Eastern Cape and hope that DCD’s investment will provide a boost in this regard. “With DCD located in the Coega IDZ, we add impetus to moves to position the Coega IDZ as the green energy hub of the Eastern Cape. This action also enables local renewable energy component manufacturing growth in tandem with the major wind projects on track in the province and country,” Vilakazi said in a statement. Schoeman added that as well as providing the boost for the local market, the factory would be completed with international specifications in mind so that products can also be competitive in international markets. “A substantial amount of research and development work has already been undertaken, and the DCD Wind Towers team is benchmarking its facility on a number of similar facilities visited in Europe and Asia and, with the help of its technology partner, has designed the layout of a factory that is internationally competitive in terms of production, quality and pricing,” he said. It is hoped that the factory will have a wide-reaching impact

DCD Wind Towers

Innovations for a global market Fall arresters redefined: Hailo PARTNER Hailo fall arrester systems are designed to prevent service staff from falling when using ladders and manhole steps, both above and below ground. Tracks or a steel rope used to guide the fall arrester are mounted to ladders and manhole steps (to one side or centrally) connected to the installation.

Hailo TOPlift LX for pylon structures Hailo service lifts have been especially developed for use in wind power systems. By deploying high-quality materials and components, the systems are suitable for long-term, safe use in virtually all wind power systems, as all fixing elements are designed and manufactured so that the Hailo TOPlift can be used for internal access in tubular towers and for external access in the case of pylon structures.

Hailo BLADElift S: rotor blade lift system for small wind power systems The rotor blades in a wind power system must be regularly accessed for cleaning, repair and servicing purposes. With the Hailo BLADElift, the company has developed a system that – as a result of its modular construction – can be customised allowing for easy inspection of both smaller rotors in 0.5-MW systems and in 6-MW systems. Whether high up or deep down: wherever safety and professionalism are required, Hailo Professional is always the perfect solution. Hailo is the market leader in climbing equipment and has – under the Hailo Professional brand – developed a tailored program for commercial climbing equipment and shaft equipment technology.

Tel. +49 2773 82-0 info@hailo-windsystems.de www. hailo-windsystems.com

OCT 13 PAGE 5

CompANY PROFILE

on the energy industry in South Africa and as the government continues its drive towards changing the energy mix, with renewables playing an ever increasing role, the hope is that manufacturing things like wind towers, from a local base, will keep ideas, skills and money within the SA economy as well as attracting foreign investment.

INDUSTRY LEADERS When complete, the factory will cover 23,000m² of zone 3 of the Coega IDZ and produce some of the highest spec wind towers for commercial wind farms that are popping up all over the Eastern Cape and throughout the rest of the country. In July, Schoeman told us that DCD would like to supply wind farms on the African continent, especially in the south as the logistics are easier to manage. If DCD can supply into other African nations it will prove extremely lucrative for the company as the renewable energy industry begins to blossom. Morocco is currently home to one of the biggest wind farms in Africa, the Koudia Al Baida Farm, and more commercial farms are planned or online in countries including Kenya (Lake Turkana Wind Power), The Gambia (Batokunku), Ethiopia (Ashegoda Wind Farm) and Egypt (Zaafarana Farm). Although DCD’s Wind Towers subsidiary is a fairly new part of the business, the company has vast experience in the wider energy sector and Schoeman told IndustrySA that it’s not just wind power that DCD specialises in. “We manufactured products for the Ingla Hydro Power

PAGE 6 DEC 13

Station and in the past we have manufactured penstocks for other hydro stations. As a company and a group we have great experience in this sector. “The manufacture of products for all the power stations; coal, nuclear and hydro is our focus, we’ve manufactured products for every power station in South Africa. “DCD as a company has already manufactured the first 80 meter tower for the Aerodyne turbine which was the first locally manufactured and assembled 2.5MW turbine as a prototype in South Africa.” Such a large build in such a short period of time has been a challenge and this was summed up by the CDC’s business development manager for the energy sector, Sandisiwe Ncemane, who said: “We have worked long and hard to create an environment in which renewable energy - from end to end could both flourish at and be facilitated by Coega. “This is becoming a hard-won reality, as investment in this sector grows not only within the boundaries of the Coega IDZ but throughout the province.”

“It is without a doubt a great injection of work and opportunity for the local community”

DCD Wind Towers

OCT 13 PAGE 7

CompANY PROFILE

ArcelorMittal South Africa, a supplier of steel solutions for the wind energy industry ArcelorMittal South Africa is part of the global ArcelorMittal group that makes renewable energy more sustainable. PAGE 8 DEC 13

www.arcelormittal.com/southafrica

ArcelorMittal is constantly developing new technologies which improve the sustainability of our products and business practices. We work in close partnership with our customers and suppliers to help them achieve their environmental goals through innovation in steel solutions. As an international company with industrial operations in more than 20 countries, ArcelorMittal recognises the impact that climate change will have on many regions in which we work. That is why we are fully engaged in global efforts to reduce greenhouse gas emissions and mitigate their impact.

Steel, the green choice for wind energy As a natural, permanent material, steel is the ideal material to support the industry in supplying material to meet the ever increasing demands for energy. Steel can already be used to create more than 80% of the components required to build a wind turbine. Valued for its strength, flexibility and durability in the field, steel is also 100% recyclable, making wind energy truly renewable. Within its first year of operation, a steel wind turbine will pay back the energy required for its production.

Wind Energy South Africa According to the Government’s Integrated Resource Plan some 17 800 MW of renewable energy is planned until 2030 of which 8400MW will be wind energy. For rounds 1 and 2, projects for 634MW and 565MW have already been allocated. This is part of the drive towards green energy and will reduce the carbon emission extensively.

Steels for every part of your wind tower ArcelorMittal produces steels which are suitable for all major parts of a wind turbine. Around 85% of all wind turbine towers are built with quarto plate steel, also known as heavy plate. ArcelorMittal is a highly respected supplier of quarto plate. One of our mills ArcelorMittal Asturias in Gijón (Spain) has supplied quarto plate for more than 3,000 wind towers since 2005. We are contemplating to upgrade our plate mill as the aim is to produce all the plates locally in South Africa, but in cases where dimensions or specifications cannot be achieved, this could be provided from within the group. The rebar required for tower foundations as well as other long products will be supplied from our mills in Newcastle and Vereeniging

Plate specifications

DCD Wind Towers

Plates from ArcelorMittal South Africa will be supplied in accordance with the EN 10025 standard using structural steel grades including S275, S355 (including JR, J0 & J2) plate can be supplied with the following dimensions: Thickness: Up to 80 mm Width: Up to 3,000 mm Length: Up to 13,000 mm (15000 mm after the proposed upgrade)

ArcelorMittal’s support adds value at all stages ArcelorMittal’s experience in the wind power sector has enabled us to develop a service programme which is specifically oriented to meet the needs of the industry. That experience enables us to add significant value for our wind energy customer. ArcelorMittal’s global customer teams work closely with our customers to respond quickly to new and changing requirements. The teams include technical experts, mills, marketing and sales personnel in order to ensure every possible eventuality is covered – something which is imperative in such a challenging supply chain. While our efforts have concentrated on reducing lead times between customer order and final delivery, ArcelorMittal also undertakes R&D activities in order to maximise cost savings for our customers. We can help wind energy suppliers develop and implement entirely new supply chains if required.

Creating the wind power solutions of tomorrow ArcelorMittal’s global R&D team includes more than 1,300 world-class researchers located in 11 laboratories around the world. Their experience and knowledge of steel and the wind power industry enables ArcelorMittal to support our customers and develop new solutions to meet the challenges they face. ArcelorMittal is actively working with wind power suppliers to develop the next generation of multi-megawatt tower designs using our high added value steels. With our global presence, ArcelorMittal is uniquely positioned to supply the wind industry with the steel solutions they require.

Plate Mill at ArcelorMittal South Africa

Rebar produced by ArcelorMittal South Africa

OCT 13 PAGE 9

www.dcd.co.za +27 16 428 0133

(0)1603 618 000 info@industrysa.com East Coast Promotions Ltd, Ferndale Business Centre, 1 Exeter Street. Norwich, Norfolk NR2 4QB