Advertorial – NDE

The South African stainless steel sector has experienced unprecedented challenges since the onset of the COVID-19 pandemic in early 2020, but Sassda Member NDE’s Managing Director Hardy Esterhuizen says it has also created a host of opportunities…

Q. How has the South African stainless steel industry fared since March 2020 when COVID-19 first began?

A. I would actually say fairly well, thanks to what I term a two-year ‘super cycle’ of productivity and growth. The first reason for this is that, although the COVID-19 lockdowns curtailed production, they also created the ideal opportunity to conduct the necessary maintenance, expansions and upgrading of plants and factories. Once things did open up, local producers and manufacturers then had enhanced facilities to catch up on significant backlogs which amped our industry’s output levels.
However, the real boost and second reason for my saying so was a result of severely constrained global supply chains in 2021. Particularly in China where the amount of exported finished products was severely restricted and disappeared almost overnight in some cases. This was of great benefit to our local sector as it was forced to fill the gap in the supply of these previously imported goods. Fortunately, the local fabrication sector rose to the challenge and proved its resilience by being able to bounce back very quickly and this was very exciting to be a part of.

Q. How has NDE adapted in the post COVID-19 era and how have the pandemic and subsequent economic aftershocks changed the way NDE does business?

A. In terms of NDE: we haven’t changed anything!

This is because one of our biggest strengths is our long-standing leadership through our management team, underpinned by the 70 year legacy of the company. This depth of experience means we have traversed difficult situations before, so, even though the COVID-19 pandemic was unprecedented, it did not have any significant impact on the way that NDE does business.

We did this by ensuring that customer relationships remained the backbone of our company and continuing to use technology to support these interpersonal relationships. This was already part and parcel of our business operations but the lockdowns allowed us to use it to its full potential.

Our company infrastructure IT was already set up in such a way that we were able to carry on our business almost seamlessly from day one of the lockdown. This also allowed us to stay very close to our customers and to gain an understanding of their challenges and needs, thus we were able to assist them in getting the material they required within a highly restricted environment.

Against this backdrop, perhaps the thing that we’re most proud of, is that we did not have to retrench a single person, no salaries were reduced, annual bonuses were paid and we retained our full staff complement.

Q. Why do you feel that stainless steel has such an important role to play in growing South Africa’s economy and which sectors hold the greatest potential to increase the use of stainless steel?

The world will always have a corrosion problem and stainless steel is currently the material of choice to combat that problem.
In addition, because of its superior hygienic qualities, stainless steel is the first choice in the food and beverage industry. This is an industry that is ever expanding due to the growing population and urban sprawl from rural areas into urban areas.

Another local sector driving demand is the mining industry. I describe it as a ‘sleeping giant’ off the back of the current energy crisis. Why do I say this? Because the ever-expanding green energy sector – whether it’s gas or solar – will have an indirect spin off for the use of stainless steel.

For example, the power storage batteries in these solar installations require materials such as nickel, cadmium and vanadium of which we have abundant resources in South Africa. When these materials are taken out of the ground and refined, stainless steel will come into its own in the highly corrosive environments required to process these materials.

Another growing ‘green’ energy product: electric car production, will also have a positive effect on the stainless steel industry as in their production, their batteries require nickel and copper cables. Both of these will be a boost to the mining sector which has a knock-on effect for the stainless steel industry, particularly as copper mining and refining is stainless steel intensive.

In addition, as countries and industries switch over to the use of natural gas, stainless steel will also be used more – in both the refining process and in piping.

Q. What do you consider the most exciting global and/or local innovations/product developments happening in stainless steel right now?

One of the most exciting areas is the development of fit-for-purpose alloys. These ‘best of both worlds’ specialised alloys from lean duplex to super duplex grades, provide superior corrosion resistance and additional strengths. They are particularly useful in highly corrosive environments and have a real role to play in the mining industry, where highly corrosive water and abrasive conditions require that level of strength and corrosion in one product.

Q. Which key sectors has NDE been a supplier to in the last 12-24 months? Please provide a brief outline of what was supplied and highlight the specific value that stainless steel added to the project?

A. We’ve been involved in large projects in the food and beverage industry where we have a long-standing good reputation. We have also done work for new breweries that have come online and are expanding quite rapidly.

Stainless steel has dual benefits when used in this application. Initially, stainless steel is used to manufacture the holding tanks for which we supply the flat product.

NDE can participate through the whole factory/plant value chain: from the incoming side of the factory (water etc.), through to tank manufacture and storage; then the transportation of food and beverages through the plant (the process flow side). NDE’s stainless steel product offering meets several industry needs with our stock of hygienic pipes, tubes and fittings, plus complementary products such as stainless steel balustrades, sections, and tubes.

We keep a large range of products on our shelves which allows for dynamic supply to this industry.

Q. What do you see as the biggest challenges facing the local industry in the next 12 months?

Looking at the macro-economic picture for the next two years, we predict that the economy is going to be fairly flat, and we don’t foresee huge growth in our industry until the country’s current energy issues are resolved. This is because stainless steel manufacture and fabrication is a very energy-intensive industry and companies in this sector are simply not going to invest in expanding their factories and building new lines under the current energy supply constraints. The real test will be now to prove that we can continue to thrive despite the country’s economic challenges.

Q. What does NDE have planned for the next year in terms of new product launches or other exciting client or staff initiatives that form a key part of its growth strategy for 2023?

Now that international borders are open again, we see great opportunities on the African continent as we believe that South Africa is the gateway to Africa. We have taken our local learnings over the last two years in terms of our local sector’s evolution amidst the pandemic and are deploying that knowledge across the continent.

In addition, if the past two years have taught us anything, it’s to not lose the human connection with our customers to allow us to create a better value offering and customer experience. For us, this is central to our business ethos. It’s not rocket science. It just requires a commitment to valuable interpersonal relationships and an approach that is always in line with our value system of being an ethically and morally correct company.

"In 2022, NDE celebrates their 70th year in business. The company was initially founded in Johannesburg to service the dairy industry and has since expanded to have branches in all key metros around South Africa, servicing a variety of South Africa’s key industries.

NDE has three branches in Gauteng (Johannesburg, Germiston and Pretoria), as well as the Head Office. In addition, you can find branches in Cape Town, Durban, Gqeberha and Mbombela. Their Exports Division, situated in Germiston, is perfectly positioned to export corrosion-resistant materials into the African continent.

For 70 years, NDE has refined their product offering – expanding from the Hygienic industry into Flat Product, Sections, Pipe, Tube, Fittings and Balustrading. Their relationship with global suppliers ensures that their customers can rely on NDE for a superior quality product, expert advice and fast delivery."

Contact NDE via their website: www.nde.co.za  “We look forward to finding an NDE Solution for you!”