The South African government is surely under pressure to raise import tariffs on steel for foreign role players after the announcement made by Saldanha Steel owner, ArcelorMittal South Africa (Amsa), that it is going to close its plant on the South African West Coast, resulting in 1000 job losses.
The attempt by Ebrahim Patel, Minister of Trade and Industry, to artificially support Amsa, with its 9000 employees, by means of lower power tariffs and other cost-saving methods will not succeed in safeguarding the company's national activities because the company is not structured to compete internationally but must compete with state-subsidised Chinese companies.
Internationally, the cost of steel production is increasing while the demand is decreasing. The government must now shift its attention to the steel industry in South Africa so as to save the entire industry, with its 500 000 job opportunities, from ruin.
The FF Plus will keep the pressure on the Minister to adjust the import tariffs of cheap steel from Taiwan and Russia in order to protect the local industry.
Contact details: 082 466 3786 / 062 391 1804