ArcelorMittal South Africa (AMSA) on Thursday welcomed the latest designations by the Department of Trade and Industry (DTI) of the local content threshold for local production and content in the rail permanent way sector.
A permanent way is the structure, comprising the rails, fasteners, railroad ties or sleepers and ballast or slab track, plus the underlying subgrade, which enables trains to move.
Included in this designation are all primary steel products, including plates, coils, seamless tubes, round bars, angles, sections and wire related products, as well as castings and forgings related to the assembly and manufacture of the rail permanent way components.
“This is great news for both primary steel producers and the downstream steel industry as it will drive demand for locally produced steel content and locally manufactured steel products in State-funded rail projects, a key focus area in government’s infrastructure development plans,” AMSA CEO Wim de Klerk said in a statement on Thursday.
The company said a local content threshold of 100% had been set for rails and rail joints; ballasts; ballastless turnouts/switches and crossings; railway sleepers; rail fastening and accessories; and assembly and testing of fully built units.
Railway maintenance of way plant and equipment had been allocated a threshold of 70%.