Broadcast Type: Interview; Tags: Southern, African, Institute, Steel, Construction, Warning, South, Africa, Steel, Industry, Brace, Knock, Effects, Closure, Arcelormittal, Meals
the southern african institute construction of steel is warning south africa's steel industry brace to itself for knock on effects due the closure to of some of arcelormittal's meals last week arcelormittal announced that it would be closing two of its meals from january twenty twenty four affecting three thousand five hundred jobs to speak to us further we the line by are joined on the chief executive officer at the sa institute of steel construction a manual gearbox ms scale a very you and thank you good afternoon to time on so much for your africa in business inviting ja thanks for me family oh you i'm very and very well well thank you look at now when we the impact that the closure arcelormittal's of mills is going to have sa on the steel industry what type of projections can we make ja so i just pointed out in your introduction i think the losses in jobs will be very difficult for the employees and of course their families and the community around wider them so this is indeed unfortunate any essentially and to the long south products division i still own little and been prominent so i've the one thing we should mention here is that a continue they are going to producing flats product and other products that are not in the long products divisions just to maybe let your audience understand products not long would be things like reinforcement bars that go into concrete angles channel are used another virus that in mining and of course kind of marriages the i shaped skill members would city walk that into a department store or warehouse so these are the long products will be disrupted that and of the course this is largest mill in the country and closure their will essentially disrupt the market significantly the near future in onto the market finds footing again its i'm wondering the recent the funds that south african government is available going to making to transnet are those funds and that type of those type of initiatives cause that could the likes of arcelormittal to perhaps reconsider because our understanding is one of the reasons why they main find themselves here is not procuring government still from them because they haven't been conducting any sort of infrastructure maintenance with funds now so available the prospects of that suddenly look a whole lot brighter be a could that consideration that's a good point if so you look back let's say past fifteen years over the or more steel consumption a lot of went into large public projects you might remember so there was the world a cup stadium construction say that to can quite a bit of steel then they two large power were the plants kusile and medupi also consume but the significant amount of steel so public projects are definitely the mainstay of steel mills all large over the world stem requires quite lots a bit as captain investment and there has to be high demand of that good portion demand does come from public projects in any country in any in south africa case not just so the slowdown in public investment and large projects has had an impact i'm sure on arcelormittal's ability plans to use their efficiently so as you correctly if they point out are indeed projects just coming up such want for transnet and large enough if there are that's me landscape they will change the and allow mittal to keep their long products some of decisions open but that having said this move has had problems long for a time especially the long products divisions and they do have other issues to contend with they do have for example problems supply with power the very well now this is a very energy intensive industry there are also competing struggle with electric competitors from abroad notes or mini that we have this country to address the lighter sections long products these millennials scrap use essentially that collector all over the country so this debate as you said so of their problems some but i don't expect so all of that their problems and as saying it's been going on you long time for quite a this forty seven billion rand facility guarantee my becoming a little too late in a little further down guess we'll have to the line but i see how as little react to that if at all are there any measures that can be put to in place help mitigate some of effects the knock on of the closure of some of these arcelormittal models yeah so we look after let's call it a good portion of the downstream industry so these are companies that the still actually by from the various modes them and take and processed them and fabricator mental into the or structures them these are the and fabricators merchants and forcing companies and from our point of view what we don't want see obviously is to that this closure affects downstream industry the where they will be more job losses and more lost industry so in that context yes there's quite a bit that has to one think about and work to on now see that the market stabilise this relatively quickly now of course this this may take a while but for instance one area where we might focus is to find engineers ways for to designed in such a way they can use maybe a more that limited variety of profiles for until this footing market finds its again the other area the merchant would be where since to service the sources interests find of steel to close that gap will be left that obviously with the the metal closure of not products factories and side one might very yet other well before people project managers palesa who are state record that's now to take note of this disruption and to find alternative trying before the project are no delays so there so stance what to we have look after this downstream industry not impacted so it's to a large extent by disclosure on the options that you did mention manual a some of the challenges that are facing the sector including competition power supply lack of a lack of procurement from government is anything else perhaps that you would like to add on as to we wrap afternoon up for this well yeah so one investment be very helpful that would now obviously public side built on the and in general would be knowles volley a good time to also look the quality though of our product so now we're about to diversify that let's say our source of steel if this was just a permanent we want to make sure that up the quality we keep of steel that is in our available market remember south africa not exporter is also of stiletto for mining over projects all the continent if at all world over the and the one thing wanna loses we do not our world class industry and exports to do that we have to keep of these all skills that different may be coming from mini mills or from abroad level the same of quality as well accustomed to so i think that's only pay some bit investment board on of the state government's side and also from industry so that's something we probably be working on will over the next year may right will certainly be keeping abreast of developments in your industry you for as well we thank your time and your insight was the chief executive that officer at african institute the south of steel construction a manual gear premier scale thank you for your time sir he takes us to exactly one thirty m p standing by to give us the headlines this half hour here is thando leke