STAINLESS STEEL MAGAZINE - ISSUE 3 - AUGUST 2025

The latest edition of the Sassda Stainless Steel magazine is here and it’s packed with sharp analysis and sector-shaping updates. In the latest issue we explore whether stainless steel can rise to meet mounting economic and policy challenges, and how the automotive industry may be steering the sector forward.

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Can stainless rise to the challenge? THE NEXT ASCENT:

TARIFFS, TRADE & TENACITY: Sassda holds the line

SA’S AUTOMOTIVE SECTOR In the stainless steel driving seat?

Contents

Technical Insight Stainless Steel in Hydrometallurgy: The Critical Link Between Process Performance and Material Integrity

Perspective Tariffs, Trade & Tenacity: Holding the Line for Local Stainless Steel

GPS Roundup Market Intelligence to Boost Business Growth

Member News Astra Industrial Innovations joins Sassda to boost stainless steel distribution capabilities Member News African Sinks joins Sassda to leverage informed stainless Selection Market Intelligence North Africa Rising: Morocco and Algeria Drive Stainless Steel Demand with Major Projects Member News Manufacturing Indaba 2025: Championing Stainless Steel in Africa’s Industrial Revolution Member News Sassda Equips the Stainless Steel Sector for a Smarter Tomorrow

Sassda News Sixty Minutes with Stainless Webinar: Full Report Back Sassda News Tariffs with a Purpose: Sassda Sets a Balanced Course on Stainless Steel Imports State of the Stainless Steel Nation Stainless Steel Stands Firm Amid Energy, Policy, and Trade Pressures Focus Feature Stainless Steel at the Core of SA’s Auto Future - If It Survives the Tariff Storm Professional Profile From Field to Factory: Craig Bateman on Analytical Innovation in Stainless Steel

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industry perspective

TELEPHONE NUMBER 011 883 0119

EMAIL info@sassda.co.za WEBSITE www.sassda.co.za

Sassda

MICHEL BASSON Executive Director michel@sassda.co.za

CALLUM SUTHERLAND Members & Communication callum@sassda.co.za MANKABE MORE Education & Training mankabe@sassda.co.za

TEBOGO NKWE Market Intelligence & Lobbying Tebogo@sassda.co.za KIM STEVENS Events, Email Marketing and Website kstevens@sassda.co.za

Tariffs, Trade & Tenacity: Holding the Line for Local Stainless Steel

JOSE HERON Accounts jose@sassda.co.za

LUISE ALLEMANN Content, Social Media and the Stainless Steel Magazine luise@mediaink.co.za

The Stainless steel magazine is published quarterly and is distributed to stockists, distributors, fabricators, specifiers, consulting engineers, architects, mining, petrochemical and chemical industries, food beverage and pharmaceutical industries, consumer outlets, end-users, educational institutes and provincial and government departments. Sassda makes every effort to ensure the accuracy of the contents of its publications, but no warranty is made as to such accuracy and no responsibility will be borne by the publisher or Sassda for the consequences of any actions based on information so published. All opinions, views and expressions contained in this publication are not necessarily those of the management of Sassda. The contents of this publication enjoy positive protection under the Copyright Act and therefore copyright thereof is expressly reserved. Any copying, publication and distribution of part or whole of the publication is prohibited unless consent is granted by Sassda.

This issue opens with one of the most pressing matters facing our sector: the question of tariffs . As reflected in the results of our 2025 member survey, the message from across the stainless steel value chain was clear. Our members are not in favour of broad, blanket tariffs on imported stainless steel products, but they do support carefully considered, targeted protection against goods that are dumped, subsidised, or simply don’t meet acceptable quality standards. At Sassda, we take this guidance seriously. As I shared during our recent webinar discussions, our members are not against protection, but they are calling for smarter, more strategic interventions rooted in fairness, facts, and sustainability. Our responsibility now is to engage actively with trade authorities such as the dtic and ITAC, using data and market intelligence to act where needed but always with the full value chain in mind, from major producers to downstream fabricators and end-users. Welcome to the third edition of the Sassda Stainless Steel Magazine for 2025. A timely and insightful snapshot of where our industry stands today and the direction we’re taking together.

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Sassda remains fully committed to representing your interests, whether through trade advocacy, export readiness support, or technical knowledge sharing. Our collective future lies in staying informed, working together, and leaning into the opportunities that change can bring. Thank you for your continued support and engagement.

This edition also highlights the shifting dynamics in the automotive sector , where stainless steel is set to play an even bigger role in the rise of electric and hydrogen vehicles. The industry is under pressure, particularly in light of U.S. tariffs on South African auto exports but within that pressure lies opportunity. With SAAM2035 setting ambitious targets for localisation, we explore how stainless steel can become a growth enabler in everything from battery enclosures to lightweight crash structures. On the broader African stage, our coverage of Manufacturing Indaba 2025 explores exciting developments tied to AfCFTA, green industrialisation, and regional logistics improvements, all of which intersect with the stainless steel sector. Likewise, our North Africa market report shines a light on Morocco and Algeria, where rapid infrastructure and energy developments are creating new demand for our products and skills. In our Professional Profile , we proudly feature Craig Bateman of Innov-X-Africa , one of Sassda’s most loyal and forward-thinking members. Craig’s hands-on leadership and dedication to local manufacturing excellence reflects what’s possible when innovation meets integrity. We also showcase the story of African Sinks , a business committed to delivering high-quality, durable products that compete head-on with imported alternatives. And our technical case study on stainless steel in hydrometallurgical plants reinforces the critical role of informed material selection and life cycle thinking in high-risk, capital-intensive applications. All of these stories point to one thing: resilience, not resignation. While the challenges we face are real; energy costs, global trade shifts, skills shortages, we are also seeing growing clarity, momentum, and purpose across the sector.

Michel Basson, Sassda Executive Director

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gps roundup

Pressure & Potential SA Industry at a Crossroads Welcome to the highlights edition of the Sassda GPS eNewsletter, your go-to source for key developments shaping South Africa’s business, industrial, and economic landscape. Each month we distribute this popular market intelligence aggregator to an exclusive database of members and associates. This selection of the best articles from the last quarter, aims to extend access to this quality content by prioritising the top stories from the latest issues…

Ramaphosa’s Infrastructure Drive Attracts R238bn in Pledges President Ramaphosa’s campaign to rebuild South Africa’s infrastructure base continues to gain traction, with R238 billion in new pledges from both domestic and international players. The funds target housing, rail, water, and green energy, creating the kind of fiscal stimulus needed to reignite growth. For businesses across the value chain from steel to cement to logistics, the pipeline is looking promising... Read more

SA Unlocks $1.5BN World Bank Loan for Infrastructure Fix

South Africa has unlocked access to a $1 billion global green industrialisation fund aimed at accelerating decarbonisation across manufacturing and heavy industry. The fund will be used to finance clean energy adoption, emissions reduction tech, and sustainable production lines. With ESG benchmarks tightening globally, this fund gives local firms a powerful tool to future-proof operations and remain globally competitive. It also signals investor belief in South Africa’s industrial reinvention story... Read more

CSIR Powers Up SA’s Additive Manufacturing Future

In a first for South Africa, the Council for Scientific and Industrial Research (CSIR) has successfully produced stainless steel powder for additive manufacturing. This paves the way for locally made components in aerospace, automotive, and medical sectors that are traditionally reliant on imported materials. The breakthrough reduces costs, boosts self-sufficiency, and could catapult SA into the global 3D printing value chain… Read more

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Ramaphosa Calls for Urgent Diversification in Response to Tariffs President Cyril Ramaphosa issued a strong response to Trump’s tariff escalation, calling it a “code red” moment for South Africa’s economic strategy. He urged companies and government teams to fast- track diversification of export markets and reduce overdependence on single trade partners. The message was clear: geopolitical disruptions are the new norm, and resilience will depend on agility and strategic pivoting. Analysts see this as a call to rethink industrial policy and accelerate investment into emerging African, Asian, and Latin American trade corridors... Read more

SA Secures Access to $1BN Green Industry Fund

US Tariff Shock Hits SA Steel and Aluminium Exporters South African steel and aluminium producers are now officially in crisis mode. The U.S. decision to double tariffs has blindsided exporters, pushing already razor-thin margins into the red. Companies now face immediate disruptions in shipments, rising warehousing costs, and declining demand. Many warn of potential layoffs and plant closures if the situation drags on. This policy shift has also exposed South Africa’s vulnerability to global policy whims, underscoring the urgent need for regional trade diversification and local value chain strengthening… Read more

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gps roundup

Trade Talks Resume Between SA and US

South Africa has announced new support measures to help local businesses absorb the impact of a 30% U.S. tariff set to take effect this week. The response includes financial assistance and temporary relief from certain competition regulations. At the same time, the government rejected claims that the tariff hike was linked to its affirmative action policies, which U.S. President Donald Trump has openly criticised... Read more

Rail Plan Revealed to Boost Logistics Sector South Africa’s freight and logistics crisis may finally be getting the attention it needs. Environment Minister Barbara Creecy announced a national rail recovery strategy aimed at overhauling outdated systems, slashing delivery delays, and cutting transport costs. Industry players say this is essential for reducing over- reliance on trucking and improving competitiveness in mining, agriculture, and manufacturing. If executed, the plan could help restore faith in South Africa’s logistics backbone and strengthen export performance... Read more

Global risks, local stakes: Can SA deliver at the G20? As South Africa prepares to host the 2025 G20 Summit, the first ever held on African soil, there’s an undeniable weight of symbolism. The summit is a chance to showcase South Africa’s leadership and ability to broker international solutions. However, the true challenge lies in transforming this historic moment into tangible outcomes – outcomes that are credible, measurable, and actionable... Read more

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Southern Farms Mega City: Joburg South’s R100bn Game-Changer An ambitious new mega development is underway in Gauteng’s south: Southern Farms, backed by R100 billion in investment. The plan includes 30 000 homes, schools, industrial hubs, and commercial spaces, making it one of the largest integrated urban projects in the country’s history. It’s a signal of investor confidence in SA’s urban-industrial future and a model for public-private partnership delivery… Read more

Government Reveals 2025/26 Infrastructure Priorities

South Africa’s infrastructure development blueprint for 2025/26 includes seven major projects focused on energy, water, and transport. These span from smart grid upgrades and desalination plants to border- crossing energy corridors and port logistics expansions. The government aims to crowd in private investment and use these anchor projects to jumpstart industrial revival and job creation… Read more

Trump’s 30% Tariffs Threaten SA Auto Industry In a major blow to South African exporters, U.S. President Donald Trump announced sweeping 30% tariffs on all SA goods entering the U.S, a move that threatens to wipe out billions in automotive trade. With car manufacturers deeply integrated into U.S. supply chains, local producers now face the risk of mass retrenchments, production slowdowns, and even shutdowns. The industry is scrambling to assess alternate markets while lobbying government to intervene. This is a pivotal moment for one of SA’s most globally integrated sectors... Read more

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sassda news

Sixty Minutes with Stainless Webinar: Full Report True impact of economic fallout from US duties

Sassda has voiced serious concern following the recent imposition of an average 30% tariff by the United States on South African stainless steel exports. The matter was a key focus of our latest 60 Minutes with Stainless webinar, which featured prominent economist Dawie Roodt as the keynote speaker. Roodt delivered a hard-hitting assessment of the impact of such measures, warning that tariffs, regardless of how they are framed, are “nothing more than taxes” that ultimately burden the consumer and distort market dynamics. “There’s no such thing as a tariff that’s paid by the exporter,” he noted. “The cost is passed on, raising local prices, and although some producers may benefit in the short term, the long-term effect is reduced competitiveness and slower innovation.” Roodt reiterated that global data supports a free-market approach governed by fair and transparent rules. “We need to be cautious of measures that claim to protect but instead entrench inefficiency.” Political posturing or economic policy? The recent US tariff hikes, which range from 0% to 50%, have been positioned by the US government as a response to its growing trade deficit. However, Roodt argued that the real driver is geopolitical leverage, not economic necessity. “This isn’t about South African exports threatening

American industry,” he said. “It’s about the US using trade as a bargaining chip particularly in response to South Africa’s global alliances and positions on key policy issues like expropriation.” Roodt warned that unless South Africa presents a more neutral and economically stable image on the world stage, the country could face further punitive measures. “Tariffs are only one stick in the diplomatic arsenal,” he cautioned. “Others could follow.” ”Our members are calling for smarter, targeted interventions not blanket measures that hurt competitiveness.” Michel Basson, Sassda Executive Director Structural Reform: A local imperative At a national level, Roodt highlighted the ongoing structural weaknesses in South Africa’s economy, from sluggish growth to poor policy implementation and investor uncertainty, noting that these must be urgently addressed if the country is to remain competitive globally. He called for a clear repositioning of South Africa as a reliable, politically neutral trading partner, adding that inward-looking legislation and inconsistent policies only serve to alienate the very allies we need. Manufacturing must modernise Turning to the industrial landscape, Roodt emphasised that manufacturers including those in the stainless steel sector must embrace new global realities, including the integration of technology and services.

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sassda news

• Support increased for targeted tariffs on products from specific countries known for dumping or substandard imports. • Over 80% of respondents import some or most of their stainless steel, highlighting the sector’s exposure to global trade.

“Modern manufacturing is no longer just about producing a product,” he said. “It’s about combining value-added services, smart systems, and skills. Fabricators need to start thinking like tech companies.” He warned that without innovation, local players risk shrinking margins in the face of global oversupply, automation, and volatile commodity markets. The role of the region While opportunities such as the African Continental Free Trade Area (AfCFTA) offer long-term potential, Roodt was clear that weak institutions, poor infrastructure, and lack of policy enforcement remain major obstacles. “South Africa has a comparative advantage in manufacturing on the continent, but we won’t realise it unless we fix the fundamentals — property rights, governance, logistics, and cross-border cooperation.” ”Fabricators need to start thinking like tech companies. The future of manufacturing is integrated and innovation-driven.” Dawie Roodt Targeted tariffs over blanket measures As part of the webinar, Sassda also shared the findings of a recent member survey aimed at gauging views on the role of import tariffs in protecting the local industry. Key takeaways included: • More than 70% of respondents rejected blanket tariffs on all imported stainless steel, citing negative impacts on price, competition, and supply chain flexibility.

• The survey covered the entire value chain, from mills to fabricators, distributors, and service providers.

• Responses were well-balanced across small, medium, and large enterprises, ensuring a representative industry view. “There’s no such thing as a tariff that’s paid by the exporter - the consumer always carries the cost.” Dawie Roodt Sassda Executive Director Michel Basson said the results would shape the association’s engagement with policymakers and trade authorities. “Our members are not against protection but they are calling for smarter, more targeted interventions that are rooted in fairness and market realities,” he said. “We will continue advocating for rules-based trade that supports local capacity where it exists, without undermining competitiveness or quality.” Basson also confirmed that Sassda is exploring targeted sectoral strategies, particularly in holloware and welded tube, where local producers have the capacity to deliver but are currently undercut by low-cost imports.

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As South Africa’s stainless steel industry navigates a volatile global trade landscape, Sassda has emerged with a pragmatic, member-driven approach to tariffs and trade protection. Based on insights from its 2025 member survey, Sassda is taking a firm but measured stance: blanket import duties are not the answer but targeted protection against dumped or inferior products is not just necessary, it’s overdue. Tariffs with a Purpose: Sassda Sets a Balanced Course on Stainless Steel Imports

fabricators, component makers, and end-users, who are equally exposed to the damage caused by unfair imports. Targeted Protection, Not Blanket Barriers In practice, this approach will see Sassda working hand-in- hand with government agencies such as the Department of Trade, Industry and Competition (dtic), the International Trade Administration Commission (ITAC), and other industry organisations including SAISI, the Consumer Goods Council of South Africa, and the Manufacturing Circle. One of the most direct tools available is the application for import duties on products where obvious dumping is taking place. South African Revenue Service (SARS) data already provides a foundation for this, enabling Sassda to track import volumes, declared customs values, and countries of origin. From this, unit values can be calculated and compared against known local benchmarks. Basson cites the example of Austenitic stainles steel. “In South Africa, the base cost to fabricators sits around R75/kg.

The survey revealed a clear direction from across the stainless steel value chain: most members are opposed to general import tariffs on stainless steel goods. However, there’s strong support for protective tariffs against products that are dumped, subsidised, or fail to meet quality standards, especially when these pose a threat to local jobs and manufacturing capacity. Sassda Executive Director Michel Basson reports, “It is apparent from the 2025 member survey that the majority of Sassda members are against import tariffs on imported stainless steel products. On the other hand, members do support the principle of tariffs against countries of origin of subsidised, dumped or inferior products.” This clear mandate is shaping Sassda’s next steps. “With this direction received from the membership, Sassda will now look at mechanisms to protect the local industry where it is required,” says Basson. These mechanisms are aimed not only at shielding major producers and distributors, but also safeguarding the downstream players such as

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sassda news

After basic conversion, whether pipe, tube, sheet or profile, the cost typically climbs to R130/kg or more, even before welding, forming or surface treatment. When fully finished imported stainless steel goods arrive in the country priced below even the raw material input cost, it raises a red flag. Such instances indicate probable contraventions of World Trade Organisation rules, opening the door to justified tariff applications.” “It is apparent from the 2025 member survey that the majority of Sassda members are against import tariffs on imported stainless steel products.” Michel Basson, Sassda Executive Director

Cracks in the Code However, identifying these imports isn’t always

straightforward. The issue often lies in the Harmonised System (HS) code classification. South Africa uses an 8-digit system to categorise goods, but this level of detail can be insufficient, especially when trying to distinguish between material grades in stainless steel. Without precise HS codes, imports can slip through untracked, making it harder to detect harmful trade patterns. Sassda is now actively working with the dtic and industry members to refine these classifications. The goal: to designate specific stainless steel products for better import tracking and, where needed, tariff protection.

Semi-Finished Complexity While primary product and finished goods are more easily monitored, the grey area of semi-finished imports adds complexity. Consider the example of pressure vessel fabrication. Some components might be available locally, while others, like specialised spherical dish ends, might not be. In these cases, applying a one-size-fits-all tariff policy risks harming local manufacturers by denying them critical inputs. This is where Sassda’s role as an industry connector becomes vital. Only an association that has a deep, real- time understanding of its sector can advise government accurately. Sassda collects, collates and analyses data across the value chain, ensuring that trade measures reflect reality on the ground, not just policy intent. As Basson notes, industry associations must speak for the entire value chain. “The impact of tariffs and other trade measures will be felt differently at different levels. A holistic view ensures that any trade barriers are applied with the wellbeing and sustainability of the complete industry at heart.” Listening First, Acting Wisely The events of 2025 have underscored the importance of inclusive, data-driven representation. Sassda has learned to listen first, engage widely, and only act when a sustainable outcome can be ensured. Moving forward, the association remains committed to its core mission: promoting the growth of a robust local stainless steel industry focused on conversion tonnage and job creation within the South African economy. As global trade pressures mount, Sassda’s balanced, transparent approach offers a model for how sector-focused trade policy can be smart, responsive, and ultimately, fair.

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state of the stainless steel nation

Standing Firm amid Energy, Policy, and Trade Pressure South Africa’s stainless steel sector is under pressure from energy issues, policy uncertainty, and global trade shifts. Yet, as Sassda Executive Director Michel Basson explains, the industry is adapting by pushing back against unfair imports, exploring export growth, and calling for practical support in skills, infrastructure, and localisation...

South Africa’s economy continues to face pressure from energy insecurity, logistics constraints and policy uncertainty. How are these macroeconomic challenges impacting the local stainless steel value chain? The local stainless steel industry remains constrained by energy issues, logistics challenges, and policy uncertainty. However, in some areas, the situation has improved over the past year. While electricity supply is less insecure at a national or generation level than in previous years, availability at the municipal level and the cost of electricity remain serious concerns. Although solar and other renewables have become viable for certain users, small and medium enterprises often find the cost of implementation beyond their reach.

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state of the stainless steel nation

Logistical bottlenecks at ports of entry continue to cause long lead times for importing and exporting materials and equipment. A positive development is Transnet’s slow but steady progress in rebuilding freight infrastructure, which could lead to more cost-efficient cargo transport and less congestion on roads. Despite these challenges, the local industry has proven resilient and continues to adapt to both domestic and international market changes. Sassda remains committed to helping members navigate issues such as tariffs, the dumping of subsidised products, and will increasingly support exporters going forward. “Disruption doesn’t always mean damage. it often signals accelerated change and those who adapt quickly can emerge stronger.” Global trends such as trade protectionism, rising input costs, and shifting supply chains are reshaping industrial markets. What external factors are currently having the greatest influence on stainless steel demand and competitiveness in Southern Africa? While global trade tools like tariffs and protectionism are not new, they have recently become far more disruptive. It’s important to understand that disruption doesn’t always mean damage. It often signals accelerated change and those who adapt quickly can emerge stronger. However, the South African stainless steel industry has struggled to build a strong foundation over the past two decades, making it harder to respond to change. This is especially true for small and medium-sized fabricators, who are often at the mercy of bigger players engaged in global trade battles. Still, the industry remains adaptable,

grounded in a pragmatic approach to change. For example, our recent tariff survey showed that while most members oppose blanket import tariffs, they support targeted tariffs on subsidised or inferior imported products. “The stainless industry is starting from a strong position – but 2025 won’t see the same growth as 2024.” With government signalling its commitment to industrialisation and localisation, where do you see the most immediate and realistic opportunities for stainless steel-driven growth, whether in public infrastructure, energy, transport, or water? In the short term, growth will come from supporting local fabricators to become profitable in their current markets. For domestic producers, a level playing field against importers is essential. Developing these producers into efficient, competitive entities means shielding them from unfair competition. It’s crucial to determine whether competitors

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state of the stainless steel nation

can help drive job-creating projects. In particular, targeted import-replacement initiatives could unlock new fabrication opportunities and generate employment. Skills development and workforce readiness remain persistent issues across the sector. How can businesses and industry bodies better align technical training with evolving needs in fabrication, design, and materials handling? Skills development remains a key issue, but it’s not just about academic qualifications. Fabrication still relies on many manual skills that can’t be taught in a classroom. By formally identifying and structuring training for these skills, the industry can make a real impact. Additionally, not all needed skills are technical and soft skills such as leadership, productivity, and management are just as important. Workforce readiness means having a well-rounded skill set that supports global competitiveness. Looking ahead, which indicators such as policy shifts, project pipelines, or private sector sentiment, would give you confidence in a stronger stainless steel trajectory over the next 12 to 24 months? While global trends are important, the local stainless steel industry’s stability will largely depend on how trade negotiations between the U.S. and South African governments unfold. Sassda hopes to secure stronger protections for local fabricators and new market access for exporters. As conditions shift rapidly, Sassda’s priority will be keeping members informed and helping the local industry stay one step ahead in a fast-changing environment.

are winning on cost or simply on price, which may reflect government subsidies, lower quality, or other distortions. Sassda will investigate such issues and act accordingly. Exporters also need support to become more competitive, and expanding into new markets will be a key Sassda focus. In the medium to long term, opportunities include developing new products, new applications for stainless steel, and replacing galvanised or coated mild steel where feasible. A potential game-changer remains a government- backed nuclear build. “The key to stainless steel growth lies in enabling downstream fabricators to be profitable, competitive, and protected from unfair imports.” Investment in downstream processing and value-added manufacturing is often cited as a growth enabler. What are some of the practical barriers to unlocking this potential, and what kinds of public-private collaboration might help overcome them? At a recent Sassda webinar, economist Dawie Roodt noted that the era of traditional factory work may be ending in developed economies. However, South Africa’s context is different. Job creation is vital, and many are willing to do any work available. This puts pressure on the industry to grow in a way that creates value and jobs. Barriers include low skill levels (not necessarily a lack of formal education) and slow or stagnant economic growth. Many blame government policies and misplaced labour regulations for limiting growth. Public-private collaboration

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focus feature

SA’s Stainless Steel Auto Ambitions Face a Tariff Test Globally, stainless steel is embedded in nearly every vehicle platform, traditional or electric. It appears in exhaust systems (grades 409, 439,

304), fasteners, trims, crash structures, and underbody shields. It’s also found in fuel lines, especially for ethanol-blended fuels, where corrosion is a major concern. In electric vehicles (EVs), stainless steel is used for battery enclosures (301L, 304L), thermal management tubing, and lightweight structural parts. In hydrogen vehicles, it’s critical for high-pressure tanks, fuel cells, and distribution infrastructure. This wide material versatility is matched by another unique trait: stainless steel is 100% recyclable, with a 96% recovery rate. It supports circularity, reduces raw material demand, and aligns with automakers’ long-term sustainability goals. South Africa’s Stainless Steel Footprint in the Auto Sector South Africa has a mature automotive industry, contributing about 5% of GDP. Stainless steel has long been a quiet contributor; feeding into local vehicle assembly, component

exports, and a growing aftermarket supply network. From exhausts to trims, fasteners to fuel system parts, domestic steel processors and component fabricators have historically met OEM needs with strong government support. But recent years have seen that value chain fray. The closure of ArcelorMittal’s Newcastle works has disrupted local production of specialty long steel grades, pushing manufacturers to import key inputs at higher cost. Some OEMs report cost hikes of up to 25% for stainless

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focus feature

components. Local economies of scale are limited, and many component manufacturers face downward price pressure from global supply chains. Despite these headwinds, stainless steel remains a pillar of opportunity under the SAAM2035 framework especially as EV and hydrogen vehicle assembly gains traction. The Tariff Disruption South Africa’s automotive sector is now under fresh pressure from outside: escalating U.S. tariffs on vehicles and auto parts. In early 2025, the U.S. imposed a 25% tariff on all South African automotive imports. That jumped to 30% in August. The result has been immediate and brutal. Vehicle exports to the U.S., one of SA’s biggest markets has plunged by over 80% in April and May 2025. Industry analysts warn that up to 100 000 jobs could be lost if the tariffs persist, many of them in auto component manufacturing, logistics, and related sectors. The rand has weakened, and investor confidence has wobbled, as key negotiations remain unresolved.

With U.S. access shrinking, the industry is scrambling to redirect output to Europe, the Middle East, and intra- African trade partners under AfCFTA but that takes time, investment, and compliance with multiple rules of origin standards. Stainless in EVs and Hydrogen Vehicles: The Next Wave The rise of electric and hydrogen vehicles is reshaping material demand in real time. Stainless steel’s role is expanding and is now playing into battery fire safety, hydrogen containment, crash durability, and fast-charging infrastructure. EVs increasingly rely on stainless battery enclosures, cooling system piping, and lightweight structures.

What is SAAM2035? The South African Automotive Masterplan 2021–2035 (SAAM2035) is the government’s long-term strategy to grow and transform the automotive industry. It targets a major shift toward higher local value-add—aiming for 60% local content in vehicles, expanded production volumes, doubled sector employment, and stronger global exports. A key focus is building a more inclusive supply chain by supporting Black-owned businesses and deepening local manufacturing capabilities.

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focus feature

• Green incentives tied to EV/hydrogen stainless content and recyclability

Hydrogen vehicles require high-performance stainless in tanks, fuel cell assemblies, and refuelling stations. In both cases, South Africa’s industry is technically capable of growing its output, if it can address processing capacity, precision forming skills, and raw material access. SAAM2035 outlines clear goals: 60% local content by 2035 (up from 39% today), green mobility investment, and deeper component manufacturing localisation. This aligns perfectly with increased stainless steel integration, particularly for exhaust replacements in EVs, battery shells, hydrogen tanks, and lightweight crash structures. Barriers to Scaling Stainless Steel Locally However, unlocking this growth is not automatic. Several barriers persist: • Technical: South Africa lacks advanced forming and joining facilities for stainless steel. High-spec fabrication (e.g. for EV battery cases) is mostly done abroad. • Skills: Stainless steel requires specialised knowledge in welding, shaping, finishing. These are not widely taught or supported in local training pipelines. • Economic: Limited volumes mean high per-unit costs. With global OEMs price-sensitive and cost-focused, imported parts often win on price alone. • Policy: Raw stainless exports are incentivised while finished imports come in tariff-free. This imbalance discourages local beneficiation. SAAM2035 support for stainless steel has been limited and implementation slow. Another concerning barrier is South Africa’s potential failure to meet rules of origin for export markets. If local content falls too low, due to steel shortages or policy gaps, vehicle exports may lose access to preferential trade zones. The Upside: Policy Levers and Localisation Wins The solution doesn’t require reinventing the wheel. South Africa already has a strong policy framework (SAAM2035), a capable stainless industry, and active industry bodies like Sassda. What’s needed is alignment and execution. Possible interventions include: • Incentives for local stainless processing in auto components (tax breaks, grants) • Skills development focused on stainless fabrication and finishing (Sassda invested over R500 000 in training in 2024) • Smart tariffs that protect local value chains without hurting affordability

These moves could make stainless not just an input, but a competitive advantage for the local automotive industry. Conclusion: Stainless Steel Can Drive a Reboot Stainless steel has always been more than a shiny surface, given that its core benefits are resistance, recyclability and longevity. In South Africa’s auto sector, it’s time that advantage was recognised, supported, and scaled. The stakes are high. Between global tariff tremors and the fast- moving shift to EV and hydrogen mobility, the industry can’t afford to stand still. Stainless steel may be one of the best levers South Africa has to both adapt and lead, if the pieces come together fast enough.

Learn more https://www.thedtic.gov.za/wp-content/ uploads/Masterplan-Automotive_Industry.pdf

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professional profile

Our Professional Profile feature showcases emerging leaders in the industry by giving them them a platform to share their insights and experiences. In this issue, we profile Innov-X Africa Sales Director Craig Bateman , who has built a career transforming technical data into practical solutions. His work spans from remote field sites to advanced testing technologies, helping industries across Africa make smarter, faster decisions. His expertise plays a vital role in stainless steel operations where precision, mobility, and speed are essential. From Field to Factory: Craig Bateman on Analytical Innovation in Stainless Steel

Please provide some background on where you come from, your school and tertiary education and where you first started working? My journey began with a solid foundation in elemental analysis sciences and a keen interest in how the world works. Early on, I found myself drawn to the practical applications of analytical tools in industrial environments, as my father and his father were involved in the industry and gave me an insight most kids will never know. My work has always revolved around providing solutions. Those formative experiences, whether in labs or on-site in northern Namibia, shaped my deep appreciation for how accurate information drives smarter decision-making in complex operations. What are some of the key work experiences or projects, that you have worked on that have challenged you but also helped to shape your skills, experience and career advancement? Several stand out. I’ve worked on refining Python scripts to process chemical test results, with an emphasis on robust error handling and clear state management. I’ve also supported field-based technicians using handheld analytical technologies, helping bridge the gap between laboratory

precision and field practicality. Every challenge, whether technical or interpersonal, has sharpened my ability to connect people with decisions in real-world environments. What would you say are the biggest i. work and ii. life lessons you have learnt thus far in your life? From a work perspective, I’ve learned that true reliability isn’t just about hardware. It’s about ensuring processes are transparent and resilient. Whether in communication or In Africa, we face two key challenges: a skills gap or ‘brain drain’ in applied materials science and limited hands-on access to advanced instrumentation due to economic instability.

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professional profile

regional support hubs can uplift technical knowledge, making sure our people are not just users, but confident operators and innovators. What are the biggest challenges in South Africa’s stainless steel sector, and how can they be addressed? Operational costs, energy instability, and skills migration are pressing issues. But we can counter them with collaborative innovation. Accelerating low-emission production technologies, investing in local R&D, and fostering mentorship programs across generations can reposition our industry for both competitiveness and resilience. We must move from reactive strategies to proactive, data-driven solutions. What innovations in stainless steel excite you most, and where do you see future growth? Smart stainless steel, integrating sensors for live structural feedback, is incredibly exciting. Likewise, the rise of 3D printing with high-performance alloys is opening doors in aerospace, healthcare, and renewable energy. Future growth lies in sectors that require durability, hygiene, and sustainability: water infrastructure, food processing, pharmaceuticals, and green energy systems. Stainless steel will be central to Africa’s next wave of development, and I’m excited to be part of that journey.

compliance, integrity matters and brings people back to you for solutions. On a personal level, I’ve come to value the transformative power of feedback. Growth doesn’t come from comfort. It comes from asking hard questions, embracing tough lessons, and remaining open to change, and having the right people around you can make all the difference.

What is your current position and how would you describe a typical day on the job?

My role sits at the crossroads of technical consulting and field application. I design intelligent workflows for chemical and metallurgical testing, provide technical support for handheld XRF and mobile OES units, and collaborate with partners to tailor solutions for industries like mining, recycling, manufacturing and processing. A typical day might include doing training on handheld XRF in the morning, running a live demo in a refinery by noon, and reviewing compliance protocols on benchtop OES with a client in the afternoon. It’s varied, fast-paced, and always rewarding. How are portable analytical technologies impacting South Africa’s stainless steel value chain? “I’ve learned that true reliability isn’t just about hardware. It’s about ensuring processes are transparent and resilient.” They’re transforming it. Tools like Vanta handheld XRF analysers allow for instant alloy verification, drastically reducing lab bottlenecks and uncertainty in fast-moving environments. From production to inspection, quality assurance to export control, these devices empower technicians to make faster, smarter decisions. That means better traceability, improved safety, and stronger regulatory compliance, especially valuable in Africa’s dynamic industrial landscape.

How important is technical knowledge in ensuring stainless steel success in African projects?

It’s essential. The effectiveness of stainless steel in industrial applications relies heavily on how well it’s understood and handled. In Africa, we face two key challenges: a skills gap or ‘brain drain’ in applied materials science and limited hands-on access to advanced instrumentation due to economic instability. But there’s also immense opportunity. Industry- academic partnerships, remote training platforms, and

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technical case study

Stainless Steel in Hydrometallurgy: The Critical Link Between Process Performance and Material Integrity

Stainless steel plays a pivotal role in the success and longevity of hydrometallurgical plants. These operations run at the edge of chemical and mechanical limits, making material performance non- negotiable. The choice of fabrication materials, particularly stainless steels, can reinforce or completely undermine the work of process specialists. This article explores the unique corrosion challenges within hydrometallurgy, explains essential principles of stainless steel selection, and introduces a Life Cycle Costing (LCC) tool to guide cost-effective, long-term material decisions.

Background Stainless steel is a young material, just over 100 years old, and continues to evolve with new grades developed for specific applications. While there are over 200 grades in the stainless steel family, they can be grouped into five distinct categories. For hydrometallurgical plants, the focus is on the more noble or highly alloyed austenitic grades, as well as duplex grades. The basic differences between austenitic (nickel- containing) materials and plain chromium (ferritic) grades highlight why Austenitics are suitable for hydrometallurgical applications. Austenitic stainless steels are both weldable and formable, and contain higher levels of chromium, nitrogen, and molybdenum compared to Ferritics.

While nickel does not directly improve corrosion resistance like chromium does, it allows higher chromium levels to be added, enhancing the passive protective layer. Molybdenum boosts resistance to localised corrosion such as pitting. Nitrogen is added to increase mechanical strength, since carbon levels are restricted in stainless steels. It also plays a key role in resisting pitting and crevice corrosion. However, austenitic grades containing 5 to 20% nickel are prone to stress corrosion cracking. When exposed to elevated temperatures, chlorides, and tensile stress, they may fail unexpectedly due to the formation and propagation of fine hairline cracks. Ferritic grades are not susceptible to stress corrosion cracking, but cannot be effectively welded in thicknesses

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technical case study

greater than 3 mm. This practical limitation is overcome by duplex stainless steels, which combine ferritic and austenitic crystal structures. In duplex alloys, austenitic grains may crack, but the surrounding ferritic structure impedes crack propagation. Duplex grades can experience this type of cracking, but typically only at temperatures above 100°C and under high chloride concentrations. Commonly Extracted Metals Hydrometallurgical processes are used to extract and refine various metals, including: • Zinc (Zn) • Copper (Cu) • Nickel (Ni) • Platinum (Pt) • Cobalt (Co) These plants use aqueous solutions to recover metals from ores, which means corrosion mechanisms are classified as wet corrosion. In wet corrosion, both temperature and solution concentration are crucial. A general rule is that corrosion rates double with every 10°C increase in temperature. Process Stages and Material Use Hydrometallurgical processes often involve the use of hot, pressurised sulphuric acid. Stainless steels are commonly used in process tanks, reactors, and cathode plates for electrowinning. The leaching stage is typically the most corrosive, due to the combination of high temperatures, pressures, and acid concentrations. In copper production, ores are oxidised in heaps or reactors during leaching. This is followed by solvent extraction and electrowinning, which deposits copper on stainless steel cathodes. Poor material selection may cause pitting on cathode plates, making copper removal difficult.

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technical case study

Impurities and Chloride Effects In real-world scenarios, sulfuric acid is rarely chemically pure. Halides, especially chlorides, severely impact stainless steel performance. Chloride presence combined with higher temperatures worsens corrosion resistance. At 200 ppm chloride, even 904L and 254SMO lose protection across much of the concentration spectrum, particularly between 40–60%. Material selection must then prioritise lower temperatures. With over 2000 ppm of chlorides, protection at high acid concentrations diminishes significantly, although performance improves at lower concentrations and higher temperatures. Metal Ions and Localised Corrosion Metal ions present in the solution also influence corrosion behaviour. Pure sulphuric acid typically causes uniform corrosion, but metal ions act as oxidisers, strengthening the passive chromium oxide layer and improving corrosion resistance. However, high metal ion concentrations and elevated temperatures increase the risk of localised corrosion such as pitting. Alloy additions like molybdenum and nitrogen can mitigate this risk. Environmental Scenarios A summary of typical plant conditions is shown in the following scenarios: • Scenarios A - C: Sulphuric acid, varying metal ion and

During dewatering, separation, and washing, thickeners are employed. Grade 2404 performs well in uranium extraction, while grade 2101 is effective for copper and cobalt. Leaching is not always acidic. For lithium hydroxide production, the environment is alkaline, using sodium carbonate at 20 bar and 200°C. Material Selection Factors Key considerations for material selection include:

• Internal environment • Service temperature • External environment • Structural requirements

• Fabrication processes • Life Cycle Costing (LCC) Sulphuric Acid Resistance

Sulphuric acid is the most commonly used chemical in hydrometallurgical applications. Iso-corrosion diagrams are the best analytical tool for material suitability. In these diagrams, areas below the line indicate corrosion rates under 0.1 mm/year, considered acceptable. For example, grade 904L, developed specifically for sulfuric acid, covers the full concentration range if kept below certain temperatures. Grade 316L is only suitable at extremely low and high concentrations. Titanium and carbon steel can also perform well at these extremes. Although not shown, grade 254SMO performs effectively across the full range.

chloride concentrations at 98°C • Scenario D: Conditions at 150°C

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