Construction World September 2019

In the second quarter of 2019, 350 441 t of cement was imported into South Africa. It is still significantly less than the almost 13 million tons produced locally, but what is of concern is that this represents a 136% increase since 2016. Why it is so unfair? Imported cement undercuts locally produced cement by 45%, hence the steep growth of such cement. Imports, primarily from Vietnam, are channelled into retail. In an industry where construction activity is depressed this becomes a significant factor, so much so that there is talk that the industrial capacity of the country is facing a crisis. South Africa has the capacity to produce 20 million tonnes of cement, but currently only produces 13 million tons on the back of low demand. On top of this, the recently

introduced carbon tax (that came into effect on 1 June) increases the cost of clinker (a major ingredient in the production of cement) by up to 2% – further increasing the unfairness of imports. The local cement industry has no option but to safeguard the local cement producing industry, hence this appeal. It is only a start though. The appeal was lodged on 5 August. Itac will, once it has decided that it wants to initiate a formal investigation, publish a notice of such an investigation in the Government Gazette. Realistically Itac will only announce its decision in 2020, a decision that may be delayed because it will be difficult to collect additional data. In an effort to safeguard the application even further, the TCI has applied for a designation on cement from the Department of Trade, Industry and Competition.

This will, if successful, mean that only local cement will be procured for any government projects.

Wilhem du Plessis Editor

Crown Publications, the publisher of Construction World, published the winners magazine for the CESA Aon Engineering Excellence Awards 2019. You can read it online by logging onto www.constructionworldmagazine.co.za CESAAON ENGINEERING EXCELLENCEAWARDS 2019

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EDITOR & DEPUTY PUBLISHER Wilhelm du Plessis constr@crown.co.za ADVERTISING MANAGER Erna Oosthuizen ernao@crown.co.za LAYOUT & GRAPHIC ARTIST Katlego Montsho CIRCULATION Karen Smith

PUBLISHER Karen Grant

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CONSTRUCTION WORLD SEPTEMBER 2019