Government aims to adopt a strategy to leverage scrap metal

dti representative Mamba says government aims to adopt a strategy to leverage the scrap metal produced by and belonging to the state and state-owned companies to enhance the competitiveness of the local steel industry, according to local reports.

To enhance the industrial capabilities and ensure job creation in South Africa, government aims to adopt a strategy to leverage the scrap metal produced by and belonging to the State and State-owned companies to enhance the competitiveness of the local steel industry. This is according to Department of Trade and Industry (DTI) capital equipment director and National Tooling Initiative Programme (NTIP) manager Bonginkosi Mamba, who was addressing delegates at the South African Institution of Mechanical Engineering seminar at the recent Machine Tools Africa 2017 exhibition.

He said this would be done in conjunction with the department reviewing construction notes for streamlining and maximising local content thresholds to enhance local manufacturing. Mamba further commented that, within the metals sector, the DTI was currently undertaking a study about whether to designate pipe fittings and specialised pipes, pumps and medium-voltage motors, switchgears, port equipment such as stackers, reclaimers, shiploaders and tippers as well as aluminium castings.

“A number of companies had recently revamped their manufacturing facilities with environmental state-of-the-art equipment to gear themselves towards meeting the local content requirements for designated products,” said Mamba

“Government had put in place a number of measures to support the local manufacturing sector. These included supporting competitiveness and technological enhancements through interventions such as the National Foundry Technology Network and the Black Industrialists Programme, while policy instruments included local content requirements and the imposition of tariffs on imports,” continued Mamba.

“The DTI is assisting the manufacturing sector by building capacity through industry-wide collaboration and in conjunction with the Department of Higher Education and Training as well as industry.”

He added that the South Africa infrastructure build programme including the Strategic Integrated Projects, presented the largest single opportunity to stimulate the industry by backing the implementation of localisation requirements and focused supplier development programmes to enhance the competitiveness of the local supply industry.

“Significant investment in rail networks and infrastructure on the African continent is expected to increase the demand for locomotives and wagons. Additionally, the African Union’s pronouncements on South Africa becoming a rail centre of excellence for the continent could provide a crucial platform to deepen South Africa’s rail manufacturing capabilities,” said Mamba.

Mamba highlighted that the outcomes of the Mining Phakisa initiative were expected to unlock growth and development opportunities in the mining sector, which would positively impact the downstream manufacturing sector.

Mamba also mentioned that the move towards a more “green economy” also presented an opportunity to implement energy saving measures in the manufacturing sector, which would move it towards complying with environmental requirements.