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Mittal again appeals for local steel in government projects
Cheap and state-subsidised Chinese steel imports are flooding the South African and world economy and government has only recently instituted import tariff protection on some products but has not yet moved decisively to protect local steel manufacturing and jobs.
Emphasising that the South African steel industry employs directly or indirectly about 190 000 people, ArcelorMittal SA – the day after the Budget Speech in Parliament last week – renewed its ongoing appeal for government designation of local manufactured and beneficiated steel in projects.
Gordhan announced that government would spend R870 billion over the next three years on infrastructure projects in the energy, transport and logistics sectors, but to date government has yet to clarify its local steel industry policy.
Cheap and state-subsidised Chinese steel imports are flooding the South African and world economy and government has only recently instituted import tariff protection on some products but has not yet moved decisively to protect local steel manufacturing and jobs.
“AMSA would like to emphasise that infrastructure-spend is critical to stimulating growth and consumption in the steel industry…the steel industry employs approximately 190 000 people and a drive to designate steel, in addition to tariff protection, will help safeguard these much-needed jobs.
“We hope the drive to reignite the economy will take into consideration the role that the local steel industry plays in boosting the local manufacturing sector and could play in the implementation of the National Development Plan,” AMSA said in a statement.
AMSA’s leadership role in the battle for import tariff protection and strategic designation for local steel suffered a major setback with the surprise resignation announcement of CEO Paul O’Flaherty in December last year.He left mid-February after announcing an annual financial loss of more than R8,5 billion for 2015.
The company also announced that it was close to selecting a new CEO and that a Broad-Based Black Economic Empowerment (BBB-EE) partner had been identified subject to final negotiations.
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