SA number two steel-maker Highveld Steel & Vanadium introduces a new high grade steel for use in high rise buildings. With Highveld Steel chief executive André de Nysschen

LINDSAY WILLIAMS: Highveld Steel & Vanadium could be a platform for challenging the mainstream construction methods - with regard to local high rise buildings. Bearing in mind that I’m not an engineer, can you put this in simple terms for us? Is it revolutionary?

ANDRÉ DE NYSSCHEN: Not really. Internationally, and in many other countries in the world steel is the medium for constructing high rise buildings, bridges and that sort of thing. South Africa is somewhat out of step, perhaps, where concrete generally is the chosen medium in this country. Certainly in countries where earthquakes are of real concern steel is always chosen for buildings.

LINDSAY WILLIAMS: So we’re actually a step behind the international trend?

ANDRÉ DE NYSSCHEN: I think so. South Africa, for years, has not followed the international trends. Part of the reason for that has been the fact that the standard of structural steel in this country was simply not strong enough - and therefore not a competitive medium.

LINDSAY WILLIAMS: You use an example of the United Kingdom - you say that steel is used for 70% of all high rise buildings, while concrete captures the remaining 30% share. What is the ratio in South Africa?

ANDRÉ DE NYSSCHEN: It is almost exactly opposite - it’s 30% steel and 70% concrete in South Africa.

LINDSAY WILLIAMS: How easy is it for us to change to the international norm?

ANDRÉ DE NYSSCHEN: I think it really is going to always be a question of cost. Technically we don’t think there are any significant issues around changing. The construction methods are well understood in this country, the design of these buildings is well understood by consulting engineers. So in the end I think the decision if one goes for a concrete structure, or a steel structure will really depend on the cost.

LINDSAY WILLIAMS: That’s an interesting point - cement/concrete prices are rising rapidly over the last couple of years with the building boom. Also steel prices - not just local steel prices, but international steel prices. Is it going to be viable for people to switch from one material to the other?

ANDRÉ DE NYSSCHEN: Our calculations show - now that we have introduced the stronger steel - it effectively means that you will now be able to construct the same structure using 16.6% less steel to achieve the same result. There, in the first place, lies a saving. One also needs to bear in mind the actual time of construction - steel buildings can literally be fabricated in workshops, brought to site, and erected very quickly. Concrete buildings, of course, have to be built on site. It takes a lot longer, and there are other difficulties associated with that. Also bridges - if you needed to construct a bridge over a busy highway with concrete, that would take you many months, obstructing traffic, etc. With steel you could manufacture the structure in a workshop - simply take it to site, and erect it in a space of two or three days.

LINDSAY WILLIAMS: What has it meant for your production process - has it been a costly exercise, in order to change your specifications?

ANDRÉ DE NYSSCHEN: It certainly meant that we’ve had to tighten up on our processes. The process discipline and control certainly has been tightened up, as well as the amount of alloy that goes into making the steel - to achieve the grain structure that is necessary.

LINDSAY WILLIAMS: The share price of Highveld on the JSE - almost unchanged at R50.89 on the close.