In order to explore potential areas of cooperation and new business prospects between the steel sectors of South Africa and Turkey, high-level delegates from the Turkish Steel Exporters’ Association (CIB), comprising 17 prominent steel exporters and manufacturers currently operating in Turkey, held talks in Johannesburg recently with key local industry stakeholders.
The delegation met the Association of Steel Tube and Pipe Manufactures and also held discussions with key Ministries charged with implementing infrastructure projects in South Africa, including the Department of Trade and Industry. The department has now been tasked to help establish ties with small and medium-sized enterprises (SMEs) and further support the implementation of broad-based black economic empowerment in South Africa.
CIB chairperson Namık Ekinci tells Engineering News that SMEs do not have adequate support systems to promote growth and development and, therefore, could benefit from the CIB’s support.
“Turkey has a strong business and trade background, which we want to share with South Africa’s industry,” says Ekinci, adding that the CIB is not necessarily looking to form ties with established local steel companies.
“We are, however, looking to create a new class of businesspeople, whom we will educate in Turkey, to bring Turkish business practice to South Africa and strengthen ties between the two countries. We believe in the success of this cooperation, which will be beneficial for South Africa and the rest of the Southern African Development Community (SADC) region.”
Ekinci further mentions that the association regards South Africa as the central hub of the SADC region and a gateway to the rest of Africa.
Ekinci tells Engineering News that, while the two countries’ steel sectors enjoyed established trade ties in the past, this has decreased significantly over the years, with South Africa’s steel imports from Turkey dropping significantly in recent years, from 69 000 t in 2011 to 16 500 t in 2012.
Only 1.3% of the 1.2-million tons of steel that South Africa imports each year comes from Turkey.
The association’s goal is to re-establish trade between the two countries by creating “mutually beneficial and fruitful business relationships that will build a bridge between our two continents to bring us even closer”, says Ekinci.
He adds that South Africa is a success- ful, laudable steel producer in its own right, having produced 7.1-million tons in 2012, according to the World Steel Association. However, it is not self-sufficient in terms of steel production, with first-quarter production down this year by 11.3%, which is 18.8% lower than production in the first quarter of 2011.
South Africa, therefore, needs to find stock from other countries – stock that Turkey wants to provide.
“South Africa is going to need some help from outside to fulfil its infrastructure development plans. With this in mind, I think collaboration between South Africa and Turkey will work well. With our industry’s background, experience and know-how, we can share our knowledge with South Africans about the Turkish steel industry.”
Ekinci tells Engineering News that plans are under way to send local steel company employees to Turkey for training and knowledge exchange so that the local sector can improve steel production.
Moreover, Ekinci highlights worldwide steel-dumping practices and the need for countries to protect their industries against the practice, which can diminish the value of steel produced in country.
He adds that the association’s experience in this regard will support South Africa in reinforcing an antidumping culture.
Burgeoning Sector
Turkey’s iron and steel industry has developed significantly since its establishment in the 1920s, ranking second among Europe’s largest crude steel producers in 2012 and eighth worldwide in steel produc- tion.
Turkey is also one of the biggest exporters of steel products, ranking seventh among steel export countries worldwide with its 20-million-ton-a-year export rate – a 14% increase year-on-year from 2011 to 2012 and a 5% year-on-year increase from the first quarter of 2012. Turkey is also the largest reinforcement bar (rebar) exporter worldwide, with a rebar export rate of nine-million tons a year.
Turkish steel products are exported to more than 180 countries worldwide, owing to the high quality of its products and its competitive prices, says Ekinci.
The country consumed 28-million tons of steel last year, which was predominantly used in the automotive, appliance and shipping industries.