http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.98Change: -0.10
R/$ = 13.33Change: -0.03
Au 1127.57 $/ozChange: -7.28
Pt 1001.00 $/ozChange: -19.00
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 14, 2012

Low-quality imports affect manufacturers

Back
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
Engineering|Port|Africa|Export||Africa|||Products|
engineering|port|africa-company|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 Wire, Rope, Sling and Chain News
Swiss-based inspection, verification, testing and certification services provider Société Générale de Surveillance (SGS-SA) was awarded a contract in February to provide statutory inspection services and training on lifting equipment for Egypt-based engineering,...
Specialist wire supplier Nockers Engineering Products notes that the manufacturing decline, which started in all local sectors in 2002 has either led to industry consolidation or company closure. “Many local component manufacturers have become importers of finished...
Rope access provider Skyriders, in conjunction with dedicated working-at-height training provider Height Wise Training Academy, started offering accredited confined-space training in July. The training aims to prevent accidents and negligence in confined-space...
More
 
 
Latest News
Updated 11 minutes ago JSE-listed construction company Afrimat intends to repurchase a four-million Afrimat shares for an aggregate consideration not exceeding R74-million. Its majority owned subsidiary Infrasors would also enter into a share buy-back programme of three-million shares for...
Updated 24 minutes ago Three formal bids have been received by the practitioners presiding over the business rescue of steel producer Evraz Highveld Steel and Vanadium and a preferred bidder could be named by as early as Wednesday. Business rescue practitioner Piers Marsden told...
Updated 24 minutes ago The high court in Pretoria has struck another blow to the technology company that is trying to hold on to the lucrative contract to operate the electronic national administration traffic information system (eNaTIS). Judge Wendy Hughes on Friday last week approved the...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Construction 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.
Real Economy Insight: Electricity 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
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
MARAIS VAN HEERDEN The owner/operator should be able to view the overall project design and progress made at any time
Three-dimensional (3D) engineering design models can now be viewed on tablets, which enable stakeholders to view the design without having to buy the design software used to create it, says engineering design firm 3DDraughting executive Marais van Heerden. The...
Ford’s newest offering in a long list of newcomers to the local market in the last two years is the B-Max multi-activity vehicle (MAV). The B-Max will play in the so called B-MAV segment, or the small MAV segment, currently dominated by Toyota’s Avanza, which sells...
 
 
 
 
 
 
 
 
 
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 $96 Close
Subscribe Now for $96