STEEL INDUSTRY - Dying a slow death.

STEEL INDUSTRY

DYING A SLOW DEATH

The contribution of South African manufacturing to our GDP has declined, from its peak around 23% in the early 1980s, to its current level of approximately 12%.

Although all of South Africa’s manufacturing sub-sectors are subjected to the same adverse influences (weak domestic demand, electricity shortages and high prices, and a hostile political climate), the Steel (Metals) sub-sector, which comprises 20% of the manufacturing sector, has performed worst of all the sub-sectors. 

There are more than one reason for the decline, among others Government’s perilous collective bargaining framework. Tim Cohen’s article, The siren song of downstream beneficiation, absolutely hits this nail on the head. It is a must read.

Regards,
Gerhard Papenfus

For more information:
NEASA Media Department
media@neasa.co.za