Officials from the Competition Commission on February 13 conducted an unannounced visit to steel and wire products company Cape Gate’s premises as part of a wider industry inquiry, following “unsubstantiated” complaints made by a third party to the commission in 2023.

Cape Gate, which is one of a handful of companies being visited by the commission, says it believes the search warrant is unlawful and intends to initiate urgent proceedings to set it aside. 

“[The company] has a right to ask for a reconsideration of the warrant, given that the order was granted in its absence, and it intends to exercise that right. There was a clear obligation on the commission to fully disclose all relevant facts to the court. Cape Gate believes the commission failed to make full disclosure as required,” the company points out in a statement.

“Cape Gate has always cooperated and is currently fully cooperating with the commission. In 2025, it made all requested information and documentation available. In fact, there was no need for a search operation, as Cape Gate has always been open and available to the Commission,” the company states.

“We take compliance with all laws and regulations extremely seriously, including the Competition Act. We are confident that our business practices are fully compliant with competition law. We strongly deny any wrongdoing,” says Cape Gate CEO Dorothea Ziegenhagen.

In relation to the 2025 Competition Tribunal decision regarding scrap purchasing in the period 2000 to 2008, Cape Gate says it maintains its stance that the tribunal’s judgment is incorrect and that there has not been contravention of the Competition Act. 

In this regard, Cape Gate has launched both review and appeal proceedings against the tribunal’s decision, which are currently sub judice and will be heard in the Competition Appeal Court during the first quarter of the year.

In October last year, Engineering News reported that the tribunal had found that certain large buyers of scrap, including Cape Gate, had entered into an agreement to fix the purchase price of scrap metal.

The tribunal said at the time that it had found that Cape Gate contravened parts of the Competition Act by participating in price-fixing in the market for the purchase of scrap metal in South Africa.

The other respondents were steel producer ArcelorMittal South Africa, stainless steel producer Columbus Stainless and steel manufacturer Scaw South Africa, the publication reported.