CEMENT INDUSTRY TO APPEAL FOR PROTECTION AGAINST IMPORTS

The Concrete Institute (TCI) will be lodging
an appeal to the International Trade Administration Commission (ITAC) of SA to
impose import tariffs on cement imports to protect producers from the mass importation
of cheaper cements from countries such as China and Vietnam.

Bryan Perrie, MD of The Concrete
Institute – which has as funding members the major cement producers, PPC,
AfriSam, Lafarge, Sephaku and Natal Portland Cement – says the approach to the
International Trade Administration Commission (ITAC) of SA will plead for the
imposition of import tariffs and a possible ban on imports for a limited
period.

“The increase in imports of cement is
affecting demand for locally produced cement to such an extent that SA
manufacturers are considering mothballing plants, retrenching staff and putting
expansion plans on hold. The effect of the cheap imports on SA cement producers
is exacerbated by a slump of unprecedented proportions in the local
construction sector with former giants in the industry already having shut or
struggling for survival,” Perrie says.

Chinese and Vietnamese cement started
pouring into South Africa after ITAC had – after an appeal from local cement
producers – agreed that there was a need to protect the industry against the
dumping of bagged Pakistani cement. ITAC then introduced heavy import duties of
up to 77% for Pakistani cement which successfully cut dumping volumes. “However,
imports from China have been rising steadily in 2016 and 2017 and last year Vietnam
joined the fray, with more than a million tons of cement being imported into South
Africa. These huge volumes are not required as the local cement industry already
has annual spare capacity of around 5 million tons,” Perrie explains.

As Competition Commission rulings
prohibit sharing company statistical information, The Concrete Institute has
had to appoint an independent team of attorneys to confidentially collate
sales, production and employment data of the various producers to include in
the application to ITAC to try and curb cement imports. 

After the cement industry had
successfully lobbied for government protection against the dumping of Pakistani
cement, the volumes of the imports from that country dropped from over
1 400 000 tons in 2014 to about 400 000 tons in 2016. “The
construction industry is now in a far greater slump than during that period so
need protection from imported cement even more,” Perrie adds.

Rob Rein, chairman of The Concrete
Institute and Group Executive Sales & Marketing of PPC, says cement is a
vital industry for the country and needs government protection at this critical
survival stage in the construction sector. “The cement, concrete and affiliated
industries employ thousands of South Africans whose jobs would be on the line
if the government does not step in to protect local cement production,” Rein
adds.

More information from Bryan Perrie, tel
011 315 0300/ www.theconcreteinstitute.org.za

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