South African Business 2018 edition

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