The Department of Trade and Industry (DTI) says it is still undertaking research and engaging with stakeholders, but believes that the possible designation of pneumatic actuators as key procurement products will enable local production on a greater scale and increase investment and competitiveness, as companies will be given greater certainty of demand.
The fifth iteration of the Industrial Policy Action Plan (Ipap) for 2013/14, not only aims to create economic growth but is also a blueprint that outlines what needs to be done to industrialise the South African economy, Trade and Industry Minister Dr Rob Davies said at a press briefing in Pretoria earlier this month.
Ipap seeks to build a competitive manufacturing sector, with a focus on strong growth and employment, by strengthening support programmes in the auto- motive, metals, agropro- cessing, clothing, textiles, leather and footwear indus- tries.
The possible designation of pneumatic actuators as a product, which will require a minimum level of local production and content to qualify for procurement by the State, is not yet complete, DTI Industrial Development division acting deputy director-general Garth Strachan tells Engineering News.
“Every designation follows a prescribed process of rigorous research and stakeholder engagement, which includes the industry and government procuring agencies,” he states.
“The research covers, among other things, the extent that import penetration has, the country’s existing manufacturing capacity and competitiveness, and the quantum of State and State-owned enterprises procure- ment, as well as pricing and other additional factors,” says Strachan.
On the issue of whether the DTI will include hydraulics as a designated product, Strachan explains that the department is open to all proposals from industry for designation, but reserves the right to take an independent position, subject to the outcomes of its research and stakeholder engagement. To date, work on hydraulics has not yet been undertaken, he says.
“The DTI is generally optimistic that the conditions to develop the metals fabrication and capital goods and the transport equipment sectors are favourable; industry has welcomed the DTI’s efforts to support these industries,” he concludes.