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OVERVIEW panding and modernising its operations. Domestically, the main consumers of steel products are the mining, manufacturing, building and construction sectors, while a significant share is destined for the export market. Steel has been experiencing a volatile few years, with reduced demand for from China severely reducing production volumes in South Africa. The Steel and Engineering Industries Federation of Southern Africa (Seifsa) reported that 19 000 jobs were lost in the metals and engineering sector in the nine months to September 2016. This sector makes up 28% of manufacturing in the country. Cheap imports have been at the heart of problems for the steel sector, as they have for textiles, but other issues include energy prices and labour costs There are as 35 aluminium processing firms in Gauteng, involved in both secondary processing to produce foils, cans, bars, rods and sheets, with final fabrication in the form of die-casting and sheet metal work. Within Gauteng, the automotive and packaging industries are the chief consumers of these products. AECI is a large manufacturing company with its roots in the mining industry. It comprises two principal divisions: AEL Mining Services (with a large factory site at Modderfontein south of Johannesburg) and Chemical Services, which presides over 20 separate companies (including Senmin, the group’s mining chemicals company).

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Incentives T h e Manuf ac turing and Competitiveness Enhancement Programme (MCEP) of the National Department of Trade and Industry (dti) announced in 2017 that it had disbursed a total of 1 552 grants to the value of R5.8-billion which had resulted in 230 000 jobs being “sustained”. Plastics, pharmaceuticals and chemicals received 31% of the money; metal fabrication, capital and real transport equipment 28% and agri-processing 21%. Italian forged wheel manufacturer Lucchini received tax and training allowances from the dti which helped it decide to invest R200-million in a new forged wheel-making facility. Blank railway wheels imported from Italy will be completed at the Germiston plant. Lucchini previously sold its wheels in South Africa through DCD Ringrollers, itself a maker of forged steel tyre products. Lucchini has committed to increasing the local content in the manufacturing process. The dti is the state’s lead promoter of the sector, as seen in the MCEP example. The main vehicle for the dti is the Industrial Policy Action Plan (IPAP), the seventh version of which was launched in 2016. The Support Programme for Industrial Innovation (SPII), run by the Industrial Development Corporation (IDC) on behalf of the dti, promotes technology development.

Gauteng Business 2018-19  

The 2018-19 edition of the Gauteng Business and Investment Guide is the premier business and investment guide for the Gauteng province and t...

Gauteng Business 2018-19  

The 2018-19 edition of the Gauteng Business and Investment Guide is the premier business and investment guide for the Gauteng province and t...

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