http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 17.21Change: -17.04
R/$ = 14.98Change: -14.84
Au 1281.42 $/ozChange: 3.30
Pt 1058.00 $/ozChange: 3.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jun 22, 2012

Industry’s future dependent on full implementation of antidumping duties

Back
South African Fasteners manufacturers Association chairperson, Rob Pietersma, discusses the state of the South African fasteners industry. Camerawork and Editing: Darlene Creamer and Shane Wiliams.
 
 
 
Africa|Business|CBC|Engineering|Export|MCEP|Mining|Power|PROJECT|Stainless Steel|Transvaal Press|Africa|China|South Africa|Manufacturing|Product|Products|Reduced Manufacturing Base|Stainless Steel Screws|Steel|Israel Bender|Rob Pietersma|Maryland|Far East
Africa|Business|Engineering|Export|MCEP|Mining|Power|PROJECT|Stainless Steel||Africa||Manufacturing|Products|Steel|||
africa-company|business|cbc|engineering|export|mcep|mining|power|project|stainless-steel-company|transvaal-press|africa|china|south-africa|manufacturing|product|products|reduced-manufacturing-base|stainless-steel-screws|steel|israel-bender|rob-pietersma|maryland|far-east



The future of the fasteners industry depends heavily on the recent provisional antidumping duties being fully implemented, South African Fasteners Manufacturers Association (Safma) chairperson Rob Pietersma tells Engineering News.

Last month, the International Trade Administration Commission of South Africa (Itac) imposed a hefty antidumping duty of 104.5% on the importation of fully threaded set screws with hexagonal heads, excluding stainless steel screws from China.

This followed an investigation by Itac, which found that these imported screws had caused local manufacturers to lose business.

In July last year, Safma submitted evidence of dumping to Itac. This showed undercutting, depression, and suppression of prices by China, resulting in a decline in capacity use, output and profit for local manufacturers and an increase in inventory levels.

Pietersma says the association brought the application on behalf of two large South African set screw manufacturers, CBC Fasteners, of which he is MD, and Transvaal Press.

These measures are seen as an extension of existing antidumping measures against Chinese and other Far East nut and bolt manufacturers.

The provisional duty will remain in force until November 2, by which time it is expected a full investigation by Itac would have been finalised.

Pietersma says that to understand the current state of the fasteners industry, it is important to consider the past.
“Imports really came into South Africa in the early 1990s and, at that point, they were coming in by the hundreds of tons. South African manufacturers were enjoying a big share in the local market and also had a stable export market,” he says.

However, he notes that, during the last 20 years, the growth of Chinese manufacturing and dumping has been a worldwide phenomenon.

“Since the 2008 global recession, imports have continued to increase and South African manufacturers tended to decline in numbers. The net result is a reduced manufacturing base,” he says.

He adds that, in the South African domestic market, imports have now escalated into the thousands of tons and, as a result of international competition, the country’s export market has been decimated.

“Another factor significantly influencing our position in the market has been the strength of the rand. Although we have seen times of weakness, there have been more times of strength,” he says.

In addition, he states that one should consider that some duties that were at about 19% in the early 1990s were reduced to 10% by the late 1990s, a factor that also fostered imports.

“So, my estimation of the reduction of employment in this relatively small industry is a 20% drop during the past three to four years.

“Manufacturing’s contribution to South Africa’s gross domestic product has also declined – 16% was the previous low and it is now at about 14%. It should be at 25%, where it has been historically,” he says.

Moving Forward

“The recognition by government that the manufacturing sector needs its assistance to grow and recent developments in the right direction to support growth are aimed at correcting imbalances in the industry, because it is through manufacturing that the country will be able to really create growth and jobs,” he says.

It is important to remember that South African manufacturers have not been, and are still not, assisted in any form by government, states Pietersma.

“That is why one has to look at manufacturers in the East. It is not just China that is exporting large volumes of goods to South Africa. These other countries in the East are also faced with a weak currency, as well as incentives and rebates to export.

“Those incentives and rebates are strongly supported by their governments and they are the factors that we are competing against, besides cheap labour,” he states.

Nevertheless, Pietersma is optimistic about government’s attempts to assist the local industry.

“The Department of Trade and Industry, in terms of its new Manufacturing Competitive Enhancement Programme (MCEP), has recognised the need to assist the manufacturing sector to gain the strong economic presence the sector used to enjoy,” he says.

The MCEP is aimed at inducing manufacturing firms to upgrade production facilities, sustaining employment and maximising volume addition in the short term.

Another significant contributor to the industry’s future is patriotism, asserts Pietersma.

“We find that many importers in the country are actually foreign-owned and/or foreign- managed; so the patriotism around creating South African jobs is minimal and such import distribution is actually supporting Chinese jobs as opposed to South African jobs.

“Safma represents South African companies that are locally owned,” he says.

Local businesses, like project and mining houses, which are huge consumers of fasteners, have a responsibility to buy products locally and support the local industry, he states.

“The only areas of growth for the fasteners industry of late have been power station activities. In spite of this, the industry is still smaller than it used to be.

“The prospects for the future of the industry rely on the antidumping duties being able to stick,” he says.

Pietersma adds that any implemented duties also need to be policed. He notes that Safma and CBC are willing to play any role they can to ensure that such policing happens.

“A lot of time, effort and money have gone into trying to secure these much-needed duties and it needs to be effective. Laws must not only be put in place, they also need to be policed. If you don’t police and levy the duties on the dumped goods properly, then you have nothing,” says CBC Fasteners financial director Israel Bender.

Pietersma emphasises that Safma is confident about the duties being permanently implemented.

“It is, of course, too early to say whether or not the duties will definitely be implemented, but Safma is confident, owing to the fact that we were able to submit strong prima facie evidence of dumping,” he says.

Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Fasteners News
SECURING SOLUTION The KE922 is an easy-to-use tensioning hand tool with a manual cutoff handle
Stainless-steel clamping solutions provider Banding & Identification Solutions last month delivered 200 of the company’s proprietary stainless steel Band-It ties to communication device and services provider Communication Technology Broadcasting (CTB) to tie down the...
Attendance at this year’s three-day-long international fastener and fixing industry exhibition, the 2015 Stuttgart Fastener Fair, improved by 4% compared with the previous event, which took place in 2013. A total of 11 060 people visited this year’s event to discover...
Construction fastener distributor Upat South Africa has expanded its range of chemical fixings, following the launch of the fischer Superbond chemical fixing range at the end of last year. The Superbond – a universal solution for cracked concrete – is available as...
More
 
 
Latest News
Brenda Berlin
Platinum mining company Impala Platinum (Implats) has secured a court order against a US platinum recycler, from which it is claiming $201-million. Implats said on Wednesday that the order, issued by the US District Court for the Eastern District of Pennsylvania,...
Andrew Hinkly
A potentially far-reaching step has been taken towards the viable roll-out of hydrogen refuelling infrastructure for platinum-using fuel cell electric vehicles (FCEVs) with the launch of a system that allows hydrogen to be stored and transported in conventional fuel...
Johannesburg mayor Parks Tau
At least R14-billion in investments had seen the economic development of the City of Johannesburg, resulting in economic hubs that created jobs and further opportunities for the city’s citizens, mayor Parks Tau said on Wednesday. The city had begun redesigning the...
More
 
 
Recent Research Reports
Energy Roundup – May 2016 (PDF Report)
The May 2016 roundup covers activities across South Africa for April 2016 and includes details of the National Energy Regulator of South Africa’s proposal to introduce a coal benchmark cost as part of its final decision on Eskom’s multiyear price determination...
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
 
 
 
 
 
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
DOROS HADJIZENONOS The 700-series devices provide network security monitoring, app control, URL filtering, VPN security, antivirus, antispam, antibot, and advanced intrusion prevention and detection functionality
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $149 Close
Subscribe Now for $149