OVERVIEW The National Department of Trade and Industry has moved to try to protect the local steel industry by regulating the use in the construction sector of locally produced and manufactured steel and steel products. Another possible intervention is related to energy prices. Silicon Smelters, which has plants in Mpumalanga and Limpopo, has asked for a two-year negotiated price agreement (NPA) on electricity, which would allow it to resume production. The National Energy Regulator of South Africa (Nersa) has the power to grant such exemptions where the industry is regarded as strategic. The structural mill of Evraz Highveld Steel in Witbank was officially relaunched in June 2017 after ArcelorMittal South Africa signed a contract to supply blooms and slabs for the mill to make into heavy structural steel. Evraz Highveld went into business rescue in 2015. The contract is for two years with an option to renew for another year. Alternately, ArcelorMittal may buy the mill after the two years. Elsewhere in Mpumalanga, the presence of Ferrometals means that Mpumalanga is still an important place for metals and machinery manufacturing, but the turbulence in the steel sector has reminded everyone of the need to diversify. Samancor Chrome (which runs Ferrometals) is the second-largest ferrochrome producer in the world with three plants. Middelburg-based Columbus Stainless is a major supplier of stainless-steel products to the
SOLUTIONS FOR AFRICA Modern manufacturers are coming up with ways to improve efficiency. In Africa, water saving and conservation is becoming a vital part of doing business. Marley Pipe Systems has released a revolutionary new hot and cold water supply solution called Pro-fit. Not only is Pro-fit made from the highest grade PE-RT (Polyethylene with Raised Temperature Resistance), which reduces loss through punctures and tears, but it also reduces installation costs by 50% and is resistant to corrosion and impact. Water passing through the system is healthier and by avoiding the use of metal any scrap value is eliminated, thus making the product more secure. The recent extended drought has reminded all South Africans of how fragile water supply can be. The Marley Vynadeep® Rainwater System efficiently channels roofwater into tanks, reducing demand on ground water and supplying vital back-up for individual private or corporate premises. Marley Pipe Systems is active in several parts of Africa and with an increased uptake in the use of gas, Marley’s presence is growing. As big retailers expand their footprints in Namibia, Mozambique and Malawi, so Marley distributes larger volumes through those channels. With the mining sectors of countries such as Zambia, Tanzania and the DRC showing signs of recovery, so the gas market is growing further still.
domestic and international market. The Manganese Metal Company in Nelspruit is the largest producer of pure electrolytic manganese metal in the world. Delta EMD, in the same town, is one of the biggest producers of electrolytic manganese dioxide. Iron production at Saldanha in the Western Cape includes hot-rolled coil produced by ArcelorMittal and cold-rolled and galvanised steel by DSP, a joint venture between South Africa’s Industrial Development Corporation (IDC) and a Belgian company, Duferco.
Local production The manufacturing sector employs the third most people, about 1.7-million, after financial services and retail. Three of South Africa’s
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SOUTH AFRICAN BUSINESS 2018