Department woos steel investors
May 21, 2008
By Michael Hamlyn
Johannesburg - A concerted attempt to attract new carbon steel investment to South Africa is being made by the department of trade and industry (dti).
Nimrod Zalk, chief director of industrial policy at the department, said during a hearing on progress in implementing the industrial policy action plan that steel pricing is a matter of concern to the dti, but also that steel production actually declined during the years from 2004 to 2007.
"This is a matter of considerable concern to us," Zalk told the portfolio committee on trade and industry. "We need to attract new carbon steel investment, partly for price competition, but also to increase security of supply."
He told the committee that an intergovernmental task team was examining the feasibility of possible new carbon steel investments, and although he declined to go into detail - citing commercial confidentiality - he said that recommendations would be presented to Trade and Industry Minister Mandisi Mpahlwa in July.
He noted that duties on carbon and stainless steels had been removed and that a review of the duties on aluminium products was expected to be completed by next month.
Supplier development programmes have already improved the performance of machinery metal fabrication and transport equipment sectors, in response to the money being spent on infrastructure development.
While Transnet and Eskom have both presented draft supplier development programmes, they have both outlined only an approach to supplier development rather than outlining concrete plans.
"It is important for us to work with the department of public enterprises to strengthen these development programmes," Zalk said. He pointed out to the committee that one of the challenges facing the industrial policy action plan was the lack of coordination between various departments, despite the effect of clustering the ministries.
He also reminded MPs it was important not to lose sight of these industrial policy goals while battling the electricity supply crisis. "We really want to ensure that we do not take our eye off the ball," he said.
As far as the motor industry development plan was concerned, Zalk said the draft architecture of the revised plan had been developed and would be up for discussion with the industry stakeholders next month.
"The process is firmly on track to deliver the architecture of the programme in August, with legislation to follow as soon as possible after that," he said.
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