R/€ = 15.16Change: -0.03
R/$ = 13.35Change: -0.02
Au 1156.06 $/ozChange: -2.88
Pt 981.00 $/ozChange: 2.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

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  
Sep 14, 2012

Low-quality imports affect manufacturers

Engineering|Port|Africa|Export|Springwell|Africa|China|South Africa|Port Elizabeth Factory|Lower-priced Finished Products|Lower-priced Imported Products|Machinery|Product|Products|Andrew Ogden|Bushy Botha|Keith Campbell
© Reuse this

Like many other industries in South Africa, the local wire industry is faced with imports of lower-priced finished products, which undermines the local manufacture of those products, says South African Wire Association (Sawa) director Keith Campbell.

“These imports are not the same standard as the materials that would be available from domestic mills, but buyers are currently price conscious as a result of the economic downturn and are not as concerned about quality as they should be.

“We have the capacity to produce these imports locally, which would generate business for domestic mills, as well as employment,” he states.

Sawa has expressed concern about the impact of lower-priced imported products since the South African government abolished import duties on wire in 2006.

The abolition of these import duties has resulted in local wire users being able to import duty-free and cheaper-priced wire from vendors such as those in China.

In 2008, the chairperson of Sawa, Bushy Botha, told Engineering News that South Africa was one of only a few countries that had duty-free imports on wire and that imports had increased noticeably since these duties were abolished.

“Although the reason for the abolishment was to lower costs for South African consumers, there could have been more local production if there had been more protection,” he said at the time.

Campbell notes that, while imports dropped during the first quarter of this year, this was the result of a decrease in demand for domestic materials, owing to economic factors.

He adds that this cannot be seen as an improvement in the import problem.

Further, he points out that Sawa members continue to look towards export markets to improve their sustainability and competitiveness, as the local wire industry has excess capacity as a result of low domestic demand.

Meanwhile, Spring manufacturer Springwell technical director Andrew Ogden believes the only way for companies to ensure competitiveness in the local wire industry is to acquire machinery that can deliver the high volumes of commonly used wire often demanded at low prices.

Springwell has invested in machinery, which allows it to be more competitive and widen its product offering as well as improve its ability to produce formed wire for various applications.

Ogden adds that the company plans to further invest in machinery to add to the product forming capabilities of its Port Elizabeth factory.

He points out that, while the local manufacture of speciality wire could create jobs in South Africa, demand for such products is too low to make it economically viable for companies to invest in technologies to produce speciality goods.

Currently, commonly used wires are readily available in South Africa, while speciality wires have to be imported when a solution is needed for specific purposes.

Campbell says, in South Africa, wire manufacturers and consumers use wire for low-tech products, such as fencing materials and fasteners, which is why there is limited local demand for speciality wires.

“Domestic volumes are too small for wire producers to manufacture speciality wires,” Campbell emphasises, adding that raw material availability is also curbed, as manufacturers are not interested in producing small quantities of specialised materials.

Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
Other Manufacturing News
Outgoing Seifsa president Ufikile Khumalo
Downscaling by South African primary steel producers was “unavoidable” despite recent protection measures, outgoing Steel and Engineering Industries Federation of Southern Africa (Seifsa) president Ufikile Khumalo cautioned on Friday. Khumalo is also chairperson of...
INVERTED CULVERTS Rocla supplied several inverted culverts for use in cooling channels at a power station in Mozambique
Precast concrete products company Rocla earlier this year supplied precast concrete inverted culverts, lids and bases to use as cooling channels to the R2.24-billion, 100 MW natural gas-fired Gigawatt power station, near Ressano Garcia, in Mozambique.
PROPOSED SCHEME The Lower Thukela bulk water supply scheme will include a 55 Mℓ/d water treatment plant and a high-lift pumpstation at the water-treatment works
Engineering, management and specialist technical services firm Aurecon has undertaken two desalination plant feasibility studies for South African water utilities, following the successful completion of technical studies and investigations, construction-phase...
Latest News
South African Airways (SAA) has enhanced its partnership with the airline’s in-flight duty-free concessionaire Tourvest Inflight Retail Services (TIRS), enabling Voyager members to earn miles when buying duty-free products and spend their miles when shopping for...
South Africa's new visa regulations are having an adverse impact on the country's tourism industry without proof that they are making any impact on child trafficking, according to Hussein Dabbas, International Air Traffic Association (Iata) regional vice-president...
The Council for Scientific and Industrial Research (CSIR) has developed a semi-autonomous solution for early pothole detection to potentially replace the often time-consuming expensive manual road inspection. Showcasing the Visual Surveying Platform (VSP), CSIR...
Recent Research Reports
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 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 infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
This Week's Magazine
BUSINESS LEADERS PANEL Adam Craker, Ivor Chipkin, Alan Hosking and Allon Raiz at the 6th IQ Business Active Growth conference
At the sixth IQ Business conference held in Sandton last month, a panel of business leaders and academics advocated that business reclaims the initiative to spur growth in South Africa amid fragmented and haphazard political direction. Management consulting firm IQ...
The building industry is an essential component of the South African economy as it contributes about 15% to the gross fixed investment that drives the economy. However, with the country’s economy going through a tough time currently, this, in turn, reflects on the...
The recipients of the 2015 South African National Energy Association (Sanea)/South African National Energy Development Institute Energy (Sanedi) Awards were announced at a ceremony and banquet in Sandton last month. Sanea chairperson Brian Statham named Exxaro CEO...
ASHER BOHBOT EOH’s corporate goals were originally aspirations, but the company is relevant and is making a difference in the territories it operates in
As South African information technology (IT) firm EOH posted another full year of strong growth, CEO Asher Bohbot, known for his frank words, people-centric management style and stoic humanism, attributed the company’s continued South African and African growth to...
International heavy-equipment engine manufacturer Cummins’ regional distribution centre (RDC) in Woodmead, Gauteng, has halved the average logistics distribution time for clients in Southern Africa and allowed for critical or long-lead stock to be kept closer to...
Alert Close
Embed Code Close
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
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96