state of the stainless steel nation
What does “localisation” realistically mean for the stainless steel value chain in 2026? Where are we genuinely strengthening domestic production and where do gaps remain? The responsibility for localisation does not rest solely with government. Partnerships between government, industry and labour are essential to rebuild the industry and restore competitiveness to global levels. Retailers can strengthen their commitment to local products, and government can support this through local content regulations, procurement incentives and a “Buy South Africa” campaign. In the stainless steel value chain, approximately 10 000 tons of finished stainless steel goods are imported into the country. Many of these products could be localised. A significant portion of these imports, such as sinks and hollowware, compete directly with local manufacturers and, in many cases, consists of low-quality dumped products. The imported 10 000 tons equate to the potential creation of up to 30 000 direct and indirect jobs across the value chain. This is significant. “In the stainless steel value chain, approximately 10 000 tons of finished stainless steel goods are imported into the country. Many of these products could be localised.”
How is the broader steel sector, including recent developments at AMSA, influencing confidence and stability in the stainless steel market? What ripple effects are fabricators and downstream manufacturers experiencing? ACTOM CEO Mervyn Naidoo recently stated that deindustrialisation has a cascading effect on society. Job losses in the metals and engineering sector have a ripple effect on supporting value chains, including suppliers, service providers and local economies. There is also a social component that is sometimes neglected; meaning that communities built around industrial hubs are affected through lower living standards and weakened social cohesion as inequality grows. There is growing cooperation between different industry sectors to align strategies and continue collective advocacy across all fronts, including government. This is no longer about the survival of a single value chain, but about the industrial and economic survival of South Africa and its workers. Is South Africa doing enough to protect and stimulate local stainless steel manufacturing? How effective have policy tools such as import tariffs, designation, or infrastructure spend been?
Reindustrialisation cannot be achieved by government or industry alone. Strategic partnerships between
10
Issue 1 – 2026
Made with FlippingBook - professional solution for displaying marketing and sales documents online