Evolution of Refractories
I have long held the belief that if you give your best formulation to a competent refractories
technologist he will be able to use his own technology to improve on it. The refractories industry in
South Africa is a small incestuous industry. Technologists pass from one company to another picking
up technology all the way and ultimately all the players benefit from this. Licensing technologies is
always a tricky business because the licensee will ultimately find improvements to the technology
and not want to pay the license fee anymore because the material is now different. The way that I
have circumvented this problem is to make the royalty payment on a diminishing basis over time.
This way the licensee never gets tired of paying the royalty.
There was an interesting court case long ago where an employee of one refractories company stole
the technology from his ex employer. I acted as technical manager for the first company and was
therefore in a good position to give evidence. Both parties approached me to give evidence. I said
that I was perfectly willing to give evidence, however I would only tell the truth. Neither party
wanted me to tell the truth. The court proved that the technology had been stolen but the court
completely ignored the question of whose technology it was.
If somebody hijacks a car from another hijacker, is the second hijacker guilty of a crime?
The evolution of the technology is as follows: Lafarge patented "low cement technology" a long
time ago. Vereeniging Refractories bought a license to produce it. Some of the employees split
away and formed their own company, Hi-Tech Refractories. I think the patent had expired by this
time but certainly the technology was stolen. Vereeniging Refractories did not lay a charge against
High-tech Refractories at the time. Clint Green left Hi-Tech Refractories to start his own company
SQR Refractories. The court case revolved mainly around a particular product Supercast 17R which
was the best selling product of Hi-tech Refractories.
If I was asked to give evidence in the court, I would have started by showing three formulations and
claiming that I had stolen this technology. The problem was that I don't know who the original
technology belonged to. It could have been Vereeniging Refractories, Hi-Tech refractories, or Jan
Raath. To determine the ownership of the technology, Vereeniging Refractories would have to
produce the original formulation on which Supercast 17R was based. In my opinion the essence of
Supercast 17R was the presence of 1% of Secar 51 cement. I have always believed that this
technology was invented by Jan Raath. The crucial question is; did he invent it while he was working
for Vereeniging Refractories or did he invent it subsequently while working for Hi-Tech Refractories?
I know that Vereeniging Refractories registered some patents based on technology developed by Jan
Raath while he was working there. My Pipe Mix formulation included the 1% of Secar 51. From
whom did I steal this technology? Without the formulation of Vereeniging Refractories original
product I can't determine who I stole the technology from. Now Clint Green's formulation does not
contain the 1% Secar 51. It was therefore my contention that Clint Green did not steal the
technology.
I advised Clint Green and his lawyer that it was quite obvious that SQR Refractories had stolen the
technology from Hi-Tech refractories. The only way for SQR to win the case would be to prove but
the technology belonged to Vereeniging Refractories and never to Hi-Tech refractories, and in any
case the essence of Supercast 17R was not copied. Clint Green and his lawyer did not take my
advice and lost the case.
To further complicate the issue, I developed a substantial improvement on Supercast 17R while
working for them. (Jan Raath died, leaving Hi-Tech without a refractories technologist.) The only
remaining partner, Max Zantow, rejected my improvement. He said “ I didn’t want an improvement,
I told you I wanted the same but cheaper.” When Thermopower Furnaces invented the concept of
“Direct Resistance Heating” they needed an impenetrable lining. They needed porcelain like
refractory. I recognised this as an opportunity to use my new material, with superb insulation
behind it in a rotary kiln. I called the new material “Pipe Mix.” It worked in the laboratory prototype
and Thermopower produced some very large scale DRH furnaces.
I designed a similar lining for a similar furnace for Highveld Steel. I quoted R110 000. They rejected
my quote in favour of a quote for R2 000. It lasted for only 15 minutes, so they scrapped the whole
project.