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Communication Notice

2 December 2011

To our Valued Customers

CHANGES: HALBERG GUSS SOUTH AFRICA

We would like to use this opportunity to communicate the very exciting changes which are taking place at Halberg Guss South Africa.

The shareholding of the company has been formally secured by Standard Bank, which now owns 100% of the South African company. As part of the new era for the company, it has been decided to implement a name change to signal this. The company will continue trading as the same legal entity, but will be renamed:

AUTOCAST SOUTH AFRICA

Further details regarding the entity name changes, email addresses, etc. will be communicated to you in due course.

Plans to effect this, to also appoint a new board of directors and to establish our technical alliances are under way. We are very encouraged by the faith that the new shareholder and our customers have placed in the company; this now gives the company the platform from which to rebuild its order book and its presence in the automotive industry in South Africa and abroad.

We would like to also use this opportunity to thank our customers who have loyally stood by us during the difficulties experienced as a result of the financial woes of the former parent company. Your continued support has been immensely valuable not only to the company but also to the local automotive industry supply base, industry peers and very importantly, the employees who form the very critical skills base so that we can serve our customers.

Yours faithfully,

Halberg Guss South Africa Management Team

Other News
FEC
Foundries Engineering Centre develops into a world class facility

Featured in Castings SA, Vol 12 No 1 June 2011

Foundries Engineering Centre (FEC) was set up initially as a small tool room to manufacture and repair tooling for the Groups' internal requirements in 1991. However it became clear in the early 2000's that a tool room needs to offer a turnkey solution if it wanted to offer a service to the foundry industry in general and, be effective.

"We realised the engineering centre's competencies needed to be elevated if it wanted to offer the industry such services as prototype and production tooling" says Adrian Sands, the FEC Manager.

In 2008, with a relatively small team FEC started to deliver replacement tooling to foundries in Germany. After the success of this initial tooling project it was seen as an ideal opportunity to offer the expertise to local and European customers on a bigger scale" continued Adrian.

"After visiting various tool rooms and patternshops in Germany, a strategic decision was made to increase the FEC's capabilities. The FEC then went through an expansion program, which doubled up the capacity in all aspects of the business. This also included the introduction of the latest innovations in various areas."

"Now the FEC can offer design, including part optimisation and analysis, casting simulation, tooling design and process design with runner systems. Coupled with the tool manufacturing capabilities, the FEC now offers a unique service to foundries and the industry here in South Africa, as well as internationally" continued Adrian.

"In the design office, for example, we have a host of software packages including all the required OEM preferred applications such as Pro Engineer, Unigraphix, Ideas as well as those required for machining in the tool room. These packages are complimented with a full Iron module Magma Soft station."

"Once the design work is complete our CNC programmers get to work on generating cutter paths using MasterCam and Eukid."

"All machining is done on our Haas CNC milling machines. After machining and intermediate quality checks, where we use a CMM, we then assemble and prepare the tools in our assembly area."

"The tooling is then verified using our GOM optical measuring system. Delivery to the foundry is not the last step but a part of the verification process. Our toolmakers form an integral part of the trial phase so as to ensure that not only does the tooling perform correctly but also if any practical changes are required they are there to assist the process."

"Once the first parts are cast they are then verified against the CAD or nominal data using the GOM system. Only when the customer is happy with the dimensions and tooling performance do we sign off the project" said Adrian.

The FEC unit is one of four divisions within the South African Group, the others being a nodular iron and aluminium plant in Port Elizabeth and the other a grey iron plant in Brits.

The Group is mainly involved in the production of automotive cast iron and aluminium power train components, including engine blocks, bearing caps, crankshafts, heads, manifolds, catalytic converter flanges and associated exhaust components.

The Port Elizabeth plant's material competences include SG, SiMo and Grey iron with a total annual melting capacity of 75,000 tons.

The plant in Brits, built in 1977, produces castings in grey iron with an annual capacity in grey iron of 54,000 tons.

The Greenfield aluminium operation was first established in 1991 to produce castings for Volkswagen and Audi and subsequently another greenfield operation was established during 2002, in order to be a key-supplier to Ford for the cylinder heads project.

All facilities are environmentally and quality rated ISO 14001, VDA 6 and TS 16949.

"In order to capitalise on market opportunities, the group has recently undergone an extensive redefining exercise to ensure global competitiveness and world-class quality products" says Bernard Brussow, Group Executive.

"In line with this restructuring the Foundries Group has adopted a strategy of focusing on customer needs, core competencies and technological advancement. In addition, focused manufacturing centres of excellence have been created encompassing specific products and competencies" says David Mertens, Technical Director.

"The Foundries Engineering Centre's vision is to be a supplier to foundries around the world and offer a quality service" said Bernard Brussow.

For further details contact Foundries Engineering Centre on TEL: 041 402 8800 or info@halbergsa.com

Halberg Guss South Africa awarded VWSA Supplier of the Year Award - April 2009

Halberg Guss South Africa was presented with the Volkswagen of South Africa Powertrain Commodity Supplier of the Year Award at an awards ceremony held in Johannesburg on Thursday, 23 April 2009.

Halberg Guss South Africa supplies Volkswagen of South Africa with aluminium cylinder heads and manifolds, which are manufactured at its Struandale plant in Port Elizabeth. These components are used for engines in the Volkswagen Crafter and the A1 Citi Golf, as well as for the new Volkswagen Global Engine EA111.

"Volkswagen of South Africa believes that Halberg Guss South Africa has proved its capabilities and expertise this past year and reinforced that it can compete against global players, working under stringent timing deadlines. We also recognise Halberg Guss SA as our export partner," explained Volkswagen at the awards ceremony.

"As a team we are immensely proud of this achievement and look forward to engaging in current and future opportunities with VWSA on a local and global basis," says Bernard Brussow, Halberg Guss executive director. "I would like to thank Volkswagen for the confidence shown in Halberg."

award
Left:
Bernard Brussow
HGSA Executive Director
Right:
David Powels
VWSA Managing Director