Imports putting South African cable industry under pressure – SOEW
South Africa’s cable manufacturing sector is under siege as a flood of cheap, substandard imports from China and Zambia threatens to dismantle a vital industry, putting thousands of jobs at risk and compromising public safety, warns South Ocean Electric Wire (SOEW) – a wholly owned subsidiary of JSE-listed South Ocean Holdings.
The company says local manufacturers, including SOEW, are “sounding the alarm” after a “disastrous” first quarter this year, with import volumes soaring and domestic production plummeting.
SOEW notes that data from January to April reveals a “staggering influx”.
According to the latest Commodity Trade Observer statistics, low-voltage cable imports increased to 5.81-million units, medium/high-voltage imports hit 3.1-million units, overhead conductor cables dropped to 438 763 units and optical fibre imports increased to 891 520 units.
Yet prices plummeted, SOEW explains, stating that China and Zambia are “dumping cables at suspiciously low rates”.
“This mirrors the unethical tactics seen in the local tyre industry, prompting urgent calls for the South African Revenue Service to impose anti-dumping duties, as it did on tyres from Vietnam, Thailand and Cambodia on June 3,” says SOEW COO Tertius Ness.
“The first quarter was a disaster for local manufacturers with volumes evaporating as imports poured in. Quarter two continues this trend, forcing most firms onto short time. The future of our industry hangs by a thread and as a result, jobs as well,” he warns.
He says that, while South Africa’s cable industry boasts ample capacity to meet local demand, this import surge, driven by low prices, undercut quality and safety.
“These are threats SOEW has long highlighted. The economic toll is severe, with local manufacturers like SOEW, producing high-quality tinned copper cables, losing ground to price-driven imports that can jeopardise numerous projects including solar projects”.
He argues that this unethical behaviour not only endangers cable safety but also sabotages South Africa’s economy, slashing both jobs and tax revenue.
“We urge authorities to act swiftly, mirroring the tyre import crackdown, to investigate dumping and protect local industry. Failure to act risks irreparable damage, as illicit trade flagged across all cable types undermines a sector capable of self-sufficiency,” says Ness.
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