PRODUCT FOCUS
Concord Cranes has a 170-crane fleet, ranging from a 7T to a 550T, which was recently enhanced with the acquisition of a new 750T crane.
the crane sector is fairly tough, in terms
of the economy. So, while the work
continues, and we have regular work and
contracts that keep us going, new project
work is fairly constrained. There’s a lot in
the pipeline but the finalisation of these
projects seems to be stalling.
“This I think is created by the instability
of the mining industry and in general
terms, our economy. This has impacted
on the wind and other energy projects
that were in the pipeline, which have
been stalled,” he adds. “Now the coal-
fired power stations are not being signed
off and there are few mining projects
coming on-stream. So, while there’s
maintenance work, there’s nothing new.”
The petrochemical industry is also in a
state of stasis.
He believes that the environment
is one of ‘wait and see’, with investors
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AUGUST 2018
watching from the sidelines to see what
will happen in the country. He maintains
that even the big construction companies
“are in the doldrums,” and adds, “That
said, it’s difficult to lay blame at any one
door,” he maintains. The general feeling is
that it’s “tough”.
Bates is of a similar view and adds,
“The crane market is slow at present.
Numerous major construction companies
in South Africa are not performing well
financially and are actually selling off their
crane fleets on auctions, at low prices. This
is affecting the new cranes sales market,
as many clients are reluctant to invest
in new cranes in these difficult
market conditions.”
He maintains that in this present
environment, the crane hire companies, a
significant sector for its Zoomlion cranes,
is consolidating, “with many crane hire
companies reducing the size of their fleets
and running them for longer than they
would previously do”. He observes that
even the mining sector is “flat with
limited sales”.
With the infrastructure and construction
sectors constrained by cost-cutting and
a lack of government spending, Van
Staden stresses that aftermarket support
increasingly becomes the main
market differentiator.
Yaman says that the wind sector kept
the company busy up to about 12 months
ago, when new IPP (independent power
producers) projects requiring government
approval were put on hold.
(The projects represent an investment
of R50-billion, while Eskom argues that
renewable energy is expensive, and the
utility has a surplus generation capacity
from its own fleet. – Ed.)