The African Business Journal: Capital Star Steel Capital Star Steel ================================================================================ admin on 16 June, 2010 01:37:00 Industrial development is booming in South Africa, and so is business at Capital Star Steel (CSS). The company was formed as a joint venture between the South African company Capital Africa Steel (Pty) Ltd and the Chinese company Seven Star Group. Although the entity is relatively new, Luis Miguel Falcao, Sales & Marketing Manager, says that Capital Star Steel is making “history in the now.” Capital Star’s goal is to be an international industry leader in the steel pipe business. What sets the company apart from its competitors is having a “top class steel supply from Korea and South Africa,” according to Falcao. He adds that “the latest technology in efficient pipe manufacturing and great customer relationship management” will only help the company as it grows. Building a solid reputation Capital Star Steel has set it sights on growing into the preferred market leader in Southern Africa, and wants to be known for its ability to build pipes cost-effectively, and as per a customer’s specifications. The company is made up of a team of professionals manufacturing pipe applications for oil, gas, water and sewerage. “We make ERW pipes that fulfill the highest quality standards and comply with API [American Petroleum Institute] specifications,” Falcao says. He explains that Capital Star’s African and U.S. markets are expanding, and the company will do work in “any other international country that requires ERW pipe between 200NB-600NB.” The company is well on its way to achieving its goals, with a world-class manufacturing facility in the Beluluane Industrial Park, Boane District, Maputo Province, Mozambique, which can produce 200,000 tons of pipe per annum. “We have established a raw material supply chain from both South Africa and China and we are currently establishing a distribution infrastructure in Southern Africa,” the company says. “With a guaranteed constant supply of electricity from Cahora Bassa and perfectly situated near the port harbour of Maputo, and the main arterial road lines that lead to South Africa, Botswana, Angola, Zimbabwe, Zambia and Tanzania, we have the ability to deliver ‘On Time & In Full’ to any project, whether it be in Africa or anywhere on the globe.” The CSS manufacturing plant has been commissioned using only the best in class machinery, equipment, and is led by a premiere management team with extensive big bore pipe industry expertise. This ensures that big bore steel line pipe meets world quality standards such as set by the American Petroleum Institute: specifically API specification 5L & 5CT. Pipe types The electric resistance welded pipes (called ERWs) produced by Capital Star Steel SA are built using a high frequency induction welding (HFI) process, which creates pipes ranging in nominal diameter from 219 mm (8 inch) to 610 mm (24 inch), and in various wall thicknesses. According to the company, in the ERW manufacturing process, steel coil is mechanically formed “into the required pipe diameter, after which a high-frequency electrical current is applied to fuse pipe skelp to form a weld.” No filler material is added, so the weld joint becomes a homogeneous part of the completed pipe, “thereby ensuring that the required engineering strength and performance specifications are met.” The company’s “strict quality control processes” that earned Capital Star Steel an API certification are complemented by the company’s delivery processes, which are designed with the customer in mind, Falcao explains. In addition to the electric resistance pipes, Capital Star Steel produces high frequency longitudinally welded steel pipes ranging from 200 to 600 OD Nominal bore. They also manufacture rectangular and squares (RHS & SHS) of various size, ranging from 15mmx15mm to 250mmx250mm. In addition, the company offers hot induction steel pipe bends and fittings, spiral welded steel pipe of various diameters, and other customized solutions. In-house quality control and testing facilities Capital Star Steel conducts in-house testing of their products, and they have the ability to conduct mechanical properties looking at hardness, tensile strength, charpy v-notch, blending strength, and flattening strength of the full size pipe. The facilities are equipped to do a metallographic examination or weld crystal structure, ultrasonic examination, and pipe and strip-edge ultrasonic flaw detection. The company also conducts chemical analysis using a spectrograph. Customers, according to the company, have access to results from tensile strength tests, assuring the customer they know what they’re getting. Types of testers include: Computer Controlled Impact Tester In order to check the toughness of parent metals and welded specimens, impact tests at room temperature, zero and sub-zero temperatures can be carried out. Areas of Brittle and Ductile fractures can be examined. Chemical Analysis Testing Equipment Chemical Analysis is carried out to check if the steel material received is in accordance with steel mill test certificates before commencing of production. These are called validation analysis, which will draw immediate attention to any excessive amounts of carbon, phosphor and sulphur, which may affect welding and mechanical qualities of the pipe and weld seam in the production process. Ultrasonic Testing The company’s automatic multiprobe ultrasonic flaw detection system monitors the weld integrity and measures the weld bead geometry after internal and external scarfing of each and every pipe manufactured. Hydrostatic Pressure Testing Machine The hydrotester has the capability of pressure testing pipes to 95 per cent of steel yield, to a maximum of 280 MPA. The process involves clamping pipes between two test heads and then filling the pipes with water and pressurising to the required specified test pressure. The pressure is then applied and held for between 5 to 10 seconds, to ensure no leakages, cracks or sweats are detected. Steel Strip Lamination Inspection Process The Capital Star Steel SA, Edge Lamination and Strip Width Ultrasonic Inspection system is employed in-line, in the manufacturing process. The company’s steel coil is constantly monitored for possible defects, using the latest equipment, ensuring consistent top quality of each and every steel pipe supplied to customers in every project. Using the latest technology, CSS employs an inline strip width UT inspection system to detect possible internal defects.” Building a sustainable business Lacao says that internally, the company is focused on building a “sustainable competitive advantage through our products and service offering, thereby building a profitable company for our shareholders and stake holders, whilst at the same time striving for employee skills development, enjoyable working environment and a positive contribution to our country and community.” CSS supports its employees, and enjoys a successful enterprise based on employee engagement. This includes the company supporting a diverse work environment, and supporting cultural events such as the World Cup. Although Lacao admits that the company is very rugby oriented, with the diverse nature of “nationalities in CSS we have just about every conceivable flag in the world flying around in our offices.” He says “half the stadiums are built with our pipe, so you can be sure to see us there at the games.” In essence, the top priorities for CSS, according to Lacao, are to “be a world class manufacturer, be the number one pipe supplier in South Africa, and ensure that all our customers, stakeholders, shareholders and employees benefit in the manner that they envisaged they should.” Lacao goes on to enforce his hopes and his commitment to growing the business, saying that he thinks the business is personally rewarding and he “loves what he does.” One can expect great things from a company who is growing quickly, with stable progress and an aptitude for success—evident by Lacao and the management staff. For more information on CSS visit www.capitalstarsteel.co.za.