In a last minute call it has been announced that the NFTN has been given permission and funding to showcase the South African foundry industry at the upcoming GMTN/GIFA 2023 exhibition in Düsseldorf, Germany. As the metals industry, of which the foundry industry is part of, is a key economic sector in the Re-imagined Industry Strategy and the Reconstruction and Recovery Plan launched by the President in October 2020, it is designated as a key industry and is part of the Steel and Metal Fabrication Master Plan – an initiative by regulators, industry and labour – that was ratified and released by the Department of Trade, Industry and Competition in June 2021. For this reason, the funding has been approved by the DTIC.
For many editions of GMTN dating back to the 1990s South Africa has had a National Pavilion at the exhibition but for some unknown reason the funding was not granted for 2019. The absence of the pavilion was very noticeable and we will never know if there was any harm done. Subsequently the world has endured a pandemic and all aspects of our lives, are still trying to recover.
As I report later in the magazine GMTN is an opportunity for South Africa Inc to showcase the capabilities and capacity of the South African metal melting industry, in line with the Master Plan, which will guide the stabilisation and progress of the industry towards full-scale industrialisation and inclusive growth. So, I urge you to, when asked, provide details of your company and its capabilities and capacity so as to be part of this initiative. At the time of writing final details were still being drawn up but t is envisaged it will be an electronic directory. As they say in advertising parlance ‘out of sight, out of mind’ – a phrase which is so true in every aspect in our lives.
Another story in this issue is the confirmation of the sale of Eclipse Foundry and Standard Foundry to the GeT Metals Group. In a separate release the Business Rescue Practitioners who are trying to rescue the Cast Products South Africa business, confirmed the sale, but also said the following in answer to my questions: “In respect of the Union Junction, the plant is not closed or closing, production has been halted due to a key client not being able to take delivery of the products produced at the plant. The business rescue practitioners of CPSA are in ongoing discussion with this key client, who have been a valued customer of CPSA for several years, in order to reach a solution on the delivery of products produced and in order to facilitate the re-commencement of production. These discussions are ongoing, productive and we hope to reach resolution shortly.”
This statement is worrying because some key emerging factors and growth measures set in the Steel and Metal Fabrication Master Plan document include an infrastructure drive, a localisation policy for South African SOEs like Transnet and export promotion into Africa and the rest of the world. We all know that Transnet is one of CPSA’s biggest clients, especially on the wheel plant side, so why are they not implementing government policy and strategic plans and buying local? It has been a complaint about the SOEs by industry for a long time, but still nothing changes. Will it ever?
