R E F R A L I N E
FEATURE
REFRALI NE KEEPS ON SEALING THOSE
HOTSPOTS
Leading refractory contractors Refraline of Johannesburg is winning increasing business across sub-Saharan Africa and beyond. “Some of our Europeans competitors see difficulties in this market, but coming from Africa one understands Africa a little bit better,� says Managing Director Manfred Rosch. By Colin Chinery 2
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n 30 years Johannesburg-based Refraline has grown to become a major refractory contracting company in sub-Saharan Africa with a reach extending to the Middle East and Australia. Refraline specialises in the installation, repair and maintenance of refractory solutions across a wide spectrum of industries including iron and steel, Ferro-alloys, non-ferrous and platinum group metals. Chemicals, petrochemicals, power generation and mining, are among other key customer sectors. Current assignments include a R10 million copper mine furnace re-lining project in Oman. Refractories are heat-resistant materials forming the linings for high-temperature furnaces, reactors and processing units. As
Refraline FEATURE
well as resistance to thermal stress and other heatinduced physical phenomena, refractories must also withstand physical wear and corrosion by chemical agents. More heat resistant than metals, refractories are essential in the process of heating applications above 1000°F (538°C). Industrial refractories are used to build structures subjected to high temperatures - line boilers, furnaces of all types and kilns - for example. And their versatility is demanding. Depending upon the application, refractories must resist chemical attack, withstand molten metal and slag erosion, thermal shock, physical impact, catalytic heat and similar conditions. And since the various ingredients of refractories impart a variety of performance characteristics and properties,
many refractories have been developed for specific purposes. Refraline’s reputation has been built on reliability, flexibility and fast response times. “When a unit is switched off for maintenance a fast turnaround is often needed. Switchoff can be costly, sometimes R1 million a day on lost production. So fast response and flexibility are key factors. Quality and our excellent safety record are others around which we have built our business model,” says Managing Director Manfred Rosch. The company was developing projects in neighbouring countries and the Middle East as far back as the late 1990s, and 15 years on its footprint extends to Botswana, Namibia, Lesotho, Swaziland, Mozambique and Mauritius. Ethiopia, the Middle East and Australia have also seen entry.
We are already doing a lot of major projects in the Democratic Republic of the Congo, significantly so in the mining sector
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“We are already doing a lot of major projects in the Democratic Republic of the Congo, significantly so in the mining sector and we see considerable growth in this region as well as in neighbouring countries like Zambia. “More political stability is coming into the region and the more stability the greater the investment that will follow. And we are very well placed to take advantage. Some of our Europeans competitors see difficulties in this market, but coming from Africa one understands Africa a little bit better.” The stronger rand and increasing labour costs are making overseas markets - where China and India are especially active - more competitive. “In general terms, the stronger rand is not having such a huge impact. We are not after all in the export of materials. We are exporting mainly services and services become more expensive when the rand gets stronger. On the other hand we benefit on the imports side, and this helps to keep the balance.” Referrals and repeat business are impressive factors in Refraline’s growth. “For example we had successfully undertaken BHP Billiton projects in South Africa, and as a result of their success we were invited to tender for the business in Tasmania. “A contract such as this depends not only on availability, but issues such as what strengths we can bring to the party - for instance the current availability of expertise here in South Africa - when a potential customer approaches us.” 4
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Refraline has a core workforce of more than 300 permanent skilled staff, supplemented by a large pool of temporary personnel. The skilled are mobile - largely domiciled in South Africa - while the less skilled are recruited in the project localities. “But in terms of moving people not all countries are flexible and this can be a limitation for us.” For Refraline, as for most companies operating in the manufacturing sector, skilled labour is a continuous challenge. “It’s one we recognised many years back. We do our own in-house training, taking in the region of 10 apprentices every year, and then depending on their potential they move on and up to the supervisor level.” There is a parallel issue. “You cannot study refractory as a subject at universities; it’s something you have to learn on the job, so we recruit engineers from related industries who then learn about refractories and our specialities.” Over the past two years the company has expanded both through internal growth, and the acquisition
Refraline FEATURE
and development of two companies, re-named Refraline SA Industrial Linings, and Refraline Natal. “We are building a Refraline brand,” says Rosch. “We have succeeded too in penetrating deeply into petro chemicals and glass, something that owes much to our excellent safety procedures and record, another strong feature of how we differentiate ourselves from our competitors.” The company is especially well equipped to handle several refractory contracts simultaneously, employing sophisticated techniques and using specialised construction equipment. For effective lining removal in kilns and ladles for example, Refraline has acquired remote-controlled Brokk MB 330 and MB 150 demolishing machines, which reduce downtime, increase productivity and improve safety. Other world-class equipment includes hydraulically operated, telescopic, rough terrain forklifts that deliver refractory materials to otherwise inaccessible locations, special mixing and pneumatic conveying machinery, and pneumatically operated bricking rigs. “The construction industry remains very labour intensive, and while machinery such as the Brokk cuts down on some labour, the installation area it is still very labour intensive. There have hardly been any major developments in technology or techniques over the past 15 years that would enable more equipment to be applied and the labour portion in the bricklaying area reduced.” Even so for Refraline innovation is continuous priority. “You have to position yourself in the market, which segment you want to place
yourself. Refractory issues and problems cannot be solved by refractory people alone. One needs to open up to the wider industry and take into view the broader operational issues, working together with the customer.” The benefits are considerable. At BHP Billiton’s plant at Meyerton near Vereeniging in Gauteng, Refraline succeeded in more than doubling the life of a lining. This was achieved in collaboration with BHP Billiton’s own engineers by changing the lining design and the selection of alternative materials. “I believe this is the way forward; one cannot look at these issues in isolation any more. “We have begun 2012 with a very full order book and are confident about growth continuing into 2013. We are very very positive about the outlook for Refraline. At the end of the day we look at issues from the perspective of the client and what they need. Our focus now and always is on the customer.” END
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