Sep 14, 2012
Low-quality imports affect manufacturersBack
Port|Africa|Engineering|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
“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© Reuse this
Creamer Media Senior Deputy Editor Online
To subscribe email firstname.lastname@example.org or click here
To advertise email email@example.com or click here
Other Manufacturing News
Master Builders Association (MBA) North has developed a Construction Health and Safety Information Technological (CHS-IT) system aligned to the requirements of the government’s new construction regulations. The new system will be launched early this year, says MBA...
Following the launch of the Centre for Rubber Science and Technology (CRST) at the Nelson Mandela Metropolitan University (NMMU) in November, waste management organisation the Recycling and Economic Development Initiative of South Africa (Redisa) has partnered with...
Recent Research Reports
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
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...
This Week's Magazine
Lifting, transporting, installing and ballasting solutions provider Ale has expanded its global fleet of trailers and invested in the latest range of widening trailers that can be mechanically widened from 3 m to the desired width for any project. Ale ordered 48 axle...
The market for the BMW 7 Series in South Africa differs quite significantly from the rest of the world. China, the US and the Middle East almost exclusively buy the long-wheel-base version, using the German manufacturer’s luxury high-end sedan as a chaffeur-driven...
January new-vehicle sales fell by 6.9%, to 48 615 units, compared with the same month last year. Statistics released by the Department of Trade and Industry show that the domestic new passenger-car market declined by 6.1%, to 34 936 units, compared with 12 months ago.
Information technology (IT) equipment and infrastructure multinational Dell is providing open infrastructure systems for clients so that they can use any systems, including innovative new systems, that suit their business needs, says Dell Europe, Middle East and...
South Africa’s State-owned defence industrial group, Denel, has set up another international partnership, based in Hong Kong. This new subsidiary is Denel Asia and it is a joint venture (JV) with South African private sector company VR Laser.