Page 91 of 91 ANNEXURE I – STRENGTHS AND OPPORTUNITIES OF THE SA STEEL INDUSTRY Annexure i STRENGTHS AND OPPORTUNITIES OF THE SA STEEL INDUSTRY
STRENGTHS
CHALLENGES
1. Our integrated Steel plants are old and inefficient 2. High elecitrical cosrts, and unstable electricity supply 3. High transport costs 4. Export of scrap 5. Lack of export promotion
1. Local know-how 2. Availiability of infrastructure 3. Availability of scrap metal and iron ore 4. Potential to export 5. Local and African demand, with new African Continental Free Trade Area 6. Designated product status for all government and parastatal projects 7. Government support to more regular modernisation for efficiencies 8. Automotive industry localisation drive and incentives 9. Increasing level of public and private sector investment to support Presidential Investment Drive
NEEDED TO SUCCEED 1. Increased competitiveness (global cost and pricing) 2. New, more efficient, quality integrated steel plants (energy, logistics) 3. New, highly efficient, quality mini mills 4. Import replacement 5. High steel grades for automotive industry, etc 6. High aluminium grades for automotive industry 7. Export promotion 8. More, regular refurbishment and technology upgrade programmes
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The South African Steel and Metal Fabrication Master Plan 1.0
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