http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.22Change: -0.23
R/$ = 11.16Change: -0.09
Au 1240.10 $/ozChange: -4.17
Pt 1243.50 $/ozChange: -18.70
 
 
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 Contact 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.
Engineering|Africa|CBC|MCEP|PROJECT|Stainless Steel|Transvaal Press|Africa|China|South Africa|Manufacturing|Mining|Product|Products|Reduced Manufacturing Base|Stainless Steel Screws|Steel|Israel Bender|Power|Rob Pietersma|Maryland|Far East
Engineering|Africa|MCEP|PROJECT|Stainless Steel||Africa||Manufacturing|Mining|Products|Steel|Power|||
engineering|africa-company|cbc|mcep|project|stainless-steel-company|transvaal-press|africa|china|south-africa|manufacturing|mining|product|products|reduced-manufacturing-base|stainless-steel-screws|steel|israel-bender|power|rob-pietersma|maryland|far-east
More Insight
© Reuse this



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
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Manufacturing News
MILL EFFICIENCY Large stainless steel producers are looking for mill concepts offering high capacity and reduced operation costs
While increasing energy costs and the necessity to reduce carbon dioxide (CO2) emissions call for more energy efficient cars, trucks, machines and plants, the steel and stainless steel industries have focused on developing new steel grades with higher strength for...
NEW COMMISSION The ACF Cornerformer Multiflex machine can be used for the corner forming mild steel of up to 4 mm and stainless steel of up to 3 mm
Sheet-metal component manufacturer Fabrinox expects to complete four projects with a collective value of about R50-million for the mining, water treatment, laboratory, and the food and beverage industry within the next six months, Fabrinox MD André Visser tells...
SABINE DALL’OMO You will be challenged regardless of gender, especially in South Africa, where having a woman at the helm of an organisation is not that unusual
Sabine Dall'Omo, Siemens South Africa CEO, talks to Tracy Hancock of Engineering News about her career and moving to South Africa for love. For the first time in 150 years, there is a woman at the helm of Siemens South Africa – German-born Sabine Dall'Omo, who has...
More
 
 
Latest News
Swedish Ambassador to South Africa Christian Meuwly will next week inaugurate the final roll-out of the new vertical shaft brick kiln (VSBK) at clay brick manufacturer Langkloof Bricks’ facility in Jeffrey’s Bay. The VSBK formed a part of economic, social and...
Hot on the heels of the launch of Rustenburg’s rapid transport system’s brand name and logo last week, a negotiation framework agreement (NFA) has been formally agreed to and signed by the Rustenburg Local Municipality (RLM) and taxi and bus operators affected by the...
The runway at the George Airport, in the Western Cape, has been rehabilitated to improve safety, in terms of run-off and storm water drainage, and the structural capacity of the pavement surface. The scope of work comprised the extension of Runway 11/29, the...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
Integrated energy and chemical company Sasol has partnered with Unisa Graduate School of Business Leadership (SBL) professor and founder and CEO of PanAvest Partnership Dr Douglas Boateng to publish a series of books on executive supply chain management aimed at...
MORNÉ DU PLESSIS Increased urgency and burgeoning awareness of the importance of these issues are beginning to change political risks and, thus, State responses to environmental concerns
The World Wide Fund for Nature’s (WWF’s) 2014 Living Planet Index (LPI) indicates that there has been a 52% decline in vertebrate species since 1970. The Index tracked the trends of 10 000 discrete populations of over 3000 vertebrate species between 1970 and 2010.
Rwanda has joined a number of East African countries seeking to import electricity from Ethiopia as its demand grows. After it became apparent several generation project it is implementing will not come on stream early enough, now plans to import 400 MW from Ethiopia...
Metrorail’s first new passenger train will arrive in November next year, says Passenger Rail Agency of South Africa (PRASA) CEO Lucky Montana. “Next year we will be able to put our hands around the infrastructure and equipment we have been talking about for so long.”
The Competition Commission has launched an investigation into what it says are “price fixing, market division and collusive tendering in the market for the manufacture and supply of automotive components to original equipment manufacturers” (OEMs, or vehicle...
 
 
 
 
 
 
 
 
 
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