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Local-content stipulation will thwart import industry

VALVES
Importing companies account for about 80% of the jobs in the valves industry

VALVES Importing companies account for about 80% of the jobs in the valves industry

Photo by Bloomberg

12th December 2014

By: Pimani Baloyi

Creamer Media Writer

  

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Local valve importer CMO Africa says government regulation, which stipulates that 70% of valves used in State projects be manufactured in-country, will lead to the demise of the valves import industry.

CMO Africa MD Mark Bowden told Engineering News at the Mining and Technical Exhibitions’ Lephalale Mining Expo, held last month at the Mogol Club, in Lephalale, that the regulation would result in a loss of jobs in the valves sector, as about 80% of people working in the industry were employed by importing companies.

“We do not have a problem with promoting local valve manufacturing, but there are thousands and thousands of jobs at stake if the local valve-importer industry dies. Importers are sitting with more than R100-million worth of stock and more than 40 years of experience, and employees that depend on the companies to make a living,” he explained.

Bowden further highlighted that, in line with the regulation, State entities often bought valves from local manufacturers that were twice as expensive as some imported products.

Further, products supplied by local manufacturers often lead to delays in starting the projects, as importers have all their products in stock.

“Local manufacturers develop products as and when they get an order, which can lead to delays. If there is a breakdown, a project can rely on us to supply those products from our stock as quickly as possible.

“Our valves are of the highest quality and are available in the latest design technology that meets global quality standards,” he elaborated.

Bowden detailed that CMO Africa and other importers had organised themselves under the Association of Valve Importers South Africa, which was established in 2012. The organisation enables members to communicate with the National Treasury and the Department of Trade and Industry to find a solution to the challenge of not getting enough business from government.

Despite this challenge, Bowden mentioned that several of CMO Africa’s valves had been sold to the Medupi power station, through local distributors.

“I have been supplying the Lephalale area for about 15 years and CMO Africa has been working here for five years. The company has helped about 12 Lephalale-based distributors with vendor numbers to sell products to the Medupi project,” he concluded.

Edited by Megan van Wyngaardt
Creamer Media Contributing Editor Online

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