Davies: Without a steel industry, SA would regress | Fin24
 
  • Trump and Tariffs

    Face-to-face trade meetings with China on the horizon.

  • Peter Moyo

    What is next for Old Mutual and its on-and off-again CEO Peter Moyo as legal manoeuverings continue?

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.

Loading...

Davies: Without a steel industry, SA would regress

Feb 27 2019 21:05
Lameez Omarjee

Losing the steel industry would have resulted in "massive deindustrialisation" in SA, said Trade and Industry Minister Rob Davies.

The minister on Tuesday briefed the portfolio committee on trade and industry on the department's response to the president's state of the nation address and the budget.

Davies told the committee that there was a real threat of the steel manufacturing industry ceasing to exist, a few years back. If that had happened, SA would have regressed.

"I don't know if people are aware of the disaster that would befall the country if this happened. We would have regressed to being iron ore producer, just exporting dirt out of the ground," Davies said.

Massive deindustrialisation

Apart from losing beneficiation, Davies said SA does not have the port capacity to import steel needed by businesses in SA. "We would have had massive deindustrialisation."

Davies said hard decisions had to be taken to yield a turnaround of the industry.

Hard decisions need to be taken again, in terms of the export taxes announced in the budget, but these are needed to ensure that scrap metal-based and smelter industries are supported in the country, he added.

"Without a steel industry we will not have downstream activity."

Last year government intervened on a decision by the US to impose a 10% ad valorem tariff on imports of aluminium products, and 25% ad valorem tariff on steel products, for national security purposes.

Through engagement, the US granted SA tariff exemptions on 161 aluminium and 36 steel products.

SA’s aluminium exports to the US account for 1.6% of total aluminium imports by the US. SA’s steel exports in 2017 only accounted for 0.98% of total US steel imports, Fin24 previously reported.

sona  |  rob davies  |  steel  |  trade agreements  |  aluminium  |  tariffs  |  trade
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What's your view on deep sea mining?

Previous results · Suggest a vote

Loading...