South Africa’s Department of Trade, Industry, and Competition has signed a plan to revive the country’s steel and metal production.
The department signed off on a plan to restore its domestic steel industry, push exports and boost production, it said in a statement on Jun 13.
South Africa is among the largest steel producers on the African continent employing around 200,000 workers and contributing about 6.2mn mt of yearly crude steel production, following Egypt at 7.3mn mt per year, based on worldsteel’s 2019 data.
The sector’s steel-consuming industries such as automotive, mining, and construction, provide ZAR600bn ($43.7bn) or 15pc to the country’s GDP while employing about eight million workers.
The strategy, which is called a Master Plan, was formed with input from industry stakeholders, including steel producers along with downstream companies, and offers methods to revive the industry and expand output, although production and other specifics were not disclosed.
The plan sets out six priority measures for steel supply chain participants on both supply and demand side as well as placing focus on agreements involving the African Continental Free Trade Area, and a steel fund to back industry developments.
The country’s biggest steel producer, supplying 61pc of steel used in the country, is ArcelorMittal South Africa. The producer holds a typical output capacity of 7mn mt of yearly hot metal and about 4.8mn mt of saleable steel products after allowing for several yield loss components.
($1 = ZAR13.73)