South Africa Association reports low levels of steel consumption

South Africa Association reports low levels of steel consumption. The Southern African Institute of Steel Construction (SAISC) reports that the construction industry in South Africa is experiencing low levels of activity. This has a negative effect on the steel industry, as the amount of steel being absorbed by the construction industry is lower than it has been in recent years, says SAISC executive director Dr Hennie de Clercq. Despite the negative effects, the association is not aware of any of the SAISC member companies that have gone bankrupt, he explains. The association reports that it does not expect the current state of the local construction and steel industries to change until the South African economy shows signs of improvement and growth, which, in turn, also depends on the state of the international economy. "We believe that a constant stream of projects in the mining, power generation, petrochemicals and property development industries should keep the industry afloat, although not at exciting levels," he says. Currently, one of the association's primary aims is to provide support for its members during this challenging period, particularly in ensuring that South African companies continue to play a significant role in Southern African projects. De Clercq adds: "A significant aim is to bring the capacity and capabilities of our members to the attention of client bodies." An illustration of the institute's work in promoting local industry relates to how it has responded to the Industrial Policy Action Plan (Ipap 1), by getting involved in the Competitive Supplier Development Programme (CSDP). Further, the institute has promoted the interests of the industry and companies by assisting in increasing their capacities. In expressing its support for the Ipap 2010 programme, the institute emphasised the need for government and the State-owned enterprises to have programmes like the CSDP to create a credible expectation of work for some time into the future. The SAISC reports that it will continue to promote the industry it represents and search for new opportunities for the industry, both locally and internationally. By: Dimakatso Motau Edited by: Brindaveni Naidoo