To revive the South African steel and stainless-steel industry, reduce job losses therein, and improve support for local manufacturing of stainless-steel goods, International Zinc Association Africa director Simon Norton believes that the coalition government ought to “partly subsidise the construction of two or three new steel mills”.

He adds that these “miniature, modern steel mills” should be automated, cost-efficient, ecologically friendly, and produce a competitive quality of steel for local construction and various production industries. The “actual owners” would be US, South Korean or European steelmakers interested in establishing a presence in South Africa.

In doing so, major steel sector players can be revived and affected steel industry suppliers can serve the local end-users of steel and stainless-steel products.

He explains that the looming closure of the ArcelorMittal long-steel plants in Gauteng and KwaZulu-Natal will not only affect steel industry players and employees, but will negatively impact on associated service providers, including water treatment companies, maintenance service providers and tool suppliers, among others, as it will shutter a significant sector for their businesses.

“The stainless-steel sector markets a product that ensures a long operational life for piping, machinery and equipment, especially in dairy, food, meat and cheese production, as well as food packaging plants,” says Norton.

Various industries rely on stainless-steel products including chemicals plants, desalination plants, pipes on liquefied natural gas platforms and sewerage works, owing to the “excellent” corrosion resistance of stainless steel under tough conditions.

“A further impact of the anticipated closure of South African steel mills includes the need to use foreign currency to import steel products once our local mills close – and even more damaging, is the loss of valuable technical work experience gained by South African engineers and artisans while working in metallurgy and steelmaking,” he points out.

For this reason, the construction of new, modern steel mills will be important for the local steel and stainless-steel industries, as it will create employment, minimise costs, provide product supply and services to businesses and citizens, as well as support the various industries that rely on stainless steel.

Norton also encourages foreign investors, such as those in the US, Germany, France and South Korea, to “take the initiative” and pursue an interest in building partially subsidised steel mills in South Africa.

In the interests of increasing stainless-steel consumption and steel consumption, he believes that the South African government ought to free sectors such as civil engineering, construction and manufacturing from “hindering and restrictive policies set up by the African National Congress government” – including broad-based black economic empowerment regulations, as well as the Labour Relations Act and minimum wage laws.

“From an economic perspective, it frustrates me as a former CEO and experienced senior manager with vast experience not to be able to implement simple actions at a national level, which if implemented would, almost immediately, boost industry and boost the stainless-steel sector.

“Stainless steel is a marvellous metal alloy that, if properly understood and correctly selected for each application, will last for decades,” he concludes.