STEEL INDUSTRY: AMSA'S DESTRUCTION OF THE STEEL DOWNSTREAM

STEEL INDUSTRY

AMSA’S DESTRUCTION
of the
STEEL DOWNSTREAM

by Gerhard Papenfus

The economic destruction caused as a result of AMSA’s inability to supply the market has reached catastrophic proportions.

Not only is the entire steel value chain experiencing stoppages, the cancellation of contracts, severe drops in production and consequent job losses has also spilt over to other industries where even small quantities/components of steel hamper the progress of production.

AMSA’s insistence on duties, even when it cannot supply the market, which will lead to its eventual demise, is arrogant, delusional and amounts to industrial sabotage.

AMSA’s promised efforts to mitigate the shortages are simply too little too late. Did they not foresee these shortages? Did they contemplate the devastating impact on the downstream? Why is it necessary for a campaign to alert them to the hardship their inefficiencies are imposing on the downstream? Or do they simply not care?

From the moment AMSA convinced Government to afford them protection, in return for an unknown favour, they forfeited the right to present any excuse for not adequately supplying the market – in terms of product and price. That’s the logical approach. Logic, however, clearly does not dictate the duties debate.

What can be the reason that causes Government to sympathise to such an extent with AMSA that it is prepared to sacrifice the entire steel downstream in order to protect this colossal unproductive monopoly?

Why is the Minister not telling us, in a short message and in plain words, what it is, so that the Industry can engage on it.

The steel downstream waits with bated breath.

Regards

We are all in this together.
Privileged and challenged to be South African.