industry insight both financially through claims, as well as loss of lives. “Good-quality pipe imports bring good benefits to the end users, but the pricing model can result in the inability of local manufacturers to remain competitive. This can, ultimately, force some to lower their prices to a point of insolvency, resulting in job losses as companies struggle to keep up with the below-market pricing. “Imported pipes enter our market at ridiculously cheaper prices than our raw materials before conversion due to the use of other heavily recycled and unknown plastic types, and potentially cheap labour outside the country,” he explains.
An HDPE continuous pipe, being pulled by the haul-off, receives the SAPPMA quality stamp of approval
According to Kimber, manufacturers source raw materials from a few suppliers (one local, and several international). This results in small margins locally, as the whole pricing on raw material is around 80% of the total cost.
look for adherence to specified conditions including pipe wall
“If you add conversion prices, you end up in the price range of
thickness, the ovality or out-of-roundness of the pipe, the re-
R37/kg, overshooting the R28/kg average. In South Africa, this is con-
quired pipe length, the workmanship of the pipe (is it smooth
sidered extremely costly for fledgling construction companies who
or does it having water mark lines etc.), and the traceability
tender and are awarded contracts based on prices rather than the
on the pipe being aligned to what is specified.
quality, integrity and longevity of products after installation.” Kimber says local manufacturers are beginning to adopt the tech-
Industry insight
nology needed to go into automations and supplying to export mar-
Kimber notes that the plastic pipe manufacturing industry is
kets. He believes this could further the decline in employment. “My
characterised by modern manufacturing processes operat-
advice to government regarding this export regu lation is, ‘if we can
ing in a competitive and challenging environment.
make it in the country, do not import it’,” concludes Motebejane.
In addition to meeting a wide variety of demanding customer requirements, he says producers of pipe products must also respond to ongoing developments in the industry as a result of changing health and safety, quality, and risk management issues. According to Kimber, one of the biggest problems in South Africa is that the industry is cutting corners and this could see the demise of the whole plastic pipe manufacturing industry, with private, mining and government organisations moving to other alternatives for water, slurry and waste reticulation. “The industry could ultimately collapse if cutting corners is allowed to continue. If unscrupulous manufacturers, not regulated by the SABS body or other pro-quality organisations like SAPPMA, continue to use non-complaint raw materials and other chemicals in their pipes, they potentially harm the quality of potable water in the country.” “The SANS and ISO specifications are explicitly clear regarding the use of recycled raw material,” adds Kimber. “Only recycled materials accumulated from a manufacturer’s own extrusion process should be used, preferably during the same batch of production, in limited quantities, so as not to influence the material characteristics of the PE resins.” Kimber says a second issue is the regulation of imported ready-to-use pipes (ISO 4427-2), with government and related organisations playing a critical gate-keeping role. “Bad-quality pipes, once installed, can cause damage to our economy
“Bad-quality pipes, once installed, can cause damage to our economy both financially through claims, as well as loss of lives.”
In sid e M in in g june/july | 2018
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