1. November 2011
Anhydrous HF in South Africa
Opportunities, Growth and Investment
Chris Potgieter, BFluor Chemicals
2. Purpose
• Illustrate lucrative SA Fluorochem industry developing
• Describe highly supportive environment
• Attract and guide investment to opportune areas
• Not an opportunity list though
• Move focus - fluorspar source to fluorochemical production
3. Content
• Background – a local AHF source as trigger
• South African Fluorochemical Cluster – getting a second address
• Fertile bed – Skills, technologies and Government framework
• Strategies – to exploit the opportunities
• What can we offer?
• Conclusion
4. Background
• Major expansion in South African fluorspar availability coming (refer SA
Fluorite and Sephaku Fluoride presentations)
• More important though – a local source of anhydrous HF is imminent
• Two alternatives on the EIA cards – Sephaku Fluoride and HF from FSA
at local phosphoric acid producer
• Provide the spark to the powder keg (technology and skills base)
5. A second address
• Historically a fluorochemical cluster developed around SA’s nuclear
program in the ‘80s (refer Pelchem presentation)
• Government driven (R+D investment, skills development,
industrialization efforts)
• Private sector limited to fluorspar mining
• Some final product manufacturing (PTFE filters, fluoropolymer coatings)
• Things are changing
6. A second address
• Fluorochemical Cluster in Ekandustria Industrial Park east of Pretoria
• Catalyzed by Sephaku’s HF/ATF project (refer presentation)
• Situated at logistically optimal node point (close to source, two export
corridors)
• Extensive authority support at all levels (National, Provincial, Local)
• Inclusion in planning and budgets
7. A second address
• Rejuvenation Strategy – target market clusters (automotive)
• Infrastructure upgrades (Critical Infrastructure Program, Provincial
Budgets)
• Inclusion into Spatial Development Frameworks
• Proximity to Fluorochemical Chair at Pretoria University (skills
development integrated with technology development)
8. Emerging Market
• Market pull is there (African population growth into middle class)
• Major investment into health care (organic fluorides)
• Alternative energy drive (fluoropolymers, inorganic salts)
• Nuclear energy (strategic initiative)
• Communication networks
• Building programs (hospitals, schools)
• Automotive industry
9. Fertile bed
• Highly experienced fluorochemical scientists, engineers and technicians
• Well established international networks (cooperation agreements)
• Skills development in a focused environment with massive Government
support
10. Fertile bed
• Skills base profile cover full range of required technologies
• New generation fluorine production
• Direct and electrochemical fluorination
• Plasma technologies
• Organic intermediates, monomers, polymerization
• Develop technology mix to fit market mix
11. Investor Strategy
• Blank drawing board, the sky is the limit
• Product/market sandbox perspective – four areas
• Existing products into existing customer base (quick entrée, step
growth, low ceiling to gain market share, good to establish a
manufacturing base) – Follower strategy
• Existing products into new markets (market development, substitute
products) – Marketing strategy
12. Investor Strategy
• New products into existing market (high level of innovation, technology
development, expensive upfront investment) – Product development
strategy
• New products into new markets (high risk/high return, strong venture
capital support, long development period) – Groundbreaking strategy
• Profile of investor will determine
13. What can we offer?
• Market development support (e.g. sales agency, market research)
• Partnering or JV opportunities (all business segments)
• Production technologies (sourcing, development, implementation)
• Developing the right technology mix to serve the selected market mix
• Project implementation (all phases)
• Guidance in local business environment (stakeholders)
14. Conclusion
• Why do you want to ship a low value commodity around the
world?
• When you have all the opportunity to establish the value-
add close to source?
• A world class HF source linked to a vast fluorspar resource
will trigger a dynamic Fluorochemical Industry in South
Africa!
