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Hot Dip Galvanizers Association Southern Africa, 3 Riley Road, Bedfordview (2025)

02/09/2025

The HDGASA galvanizes micro-enterprises to learn and grow
The Hot Dip Galvanizers Association of South Africa (HDGASA) has a distinctive ‘open door’ approach when it comes to educating and equipping micro-enterprises – small businesses - to embrace hot dip galvanizing, the widely preferred method of corrosion control for steel.
“A great oak tree does not grow overnight. As an industry, we must remember that the great oaks of tomorrow are just saplings today,” says HDGASA Marketing Manager, Anthony Botha.
“In South Africa, youth unemployment is currently sitting at approximately 60%. Government is looking at youth training programmes such as welding and metalworking. People will use these skills for their own entrepreneurial pursuits. Others may have already developed skills in fabrication or manufacturing, and are now trying to set up their own businesses. Despite having had some exposure, they may not yet fully understand the technology,” Botha points out.
The HDGASA provides technical support to micro-enterprises online via the Association’s website and responds to phone and email enquiries - providing what Botha calls “ground-level entry to education on galvanizing” for the entrepreneur who may be working out of his home garage or a small factory unit.
Guidelines can be easily downloaded and are written not only for technically qualified people such as engineers, but for non-technical entrepreneurs, who are looking for practical information and advice about hot dip galvanizing as a means of corrosion control.
Supply and demand
In certain parts of the country where corrosion is high, there is already significant demand for galvanizing - even from small businesses or semi-professional DIY businesses making steel articles such as gates, burglar proofing, fencing or trailers.
“However, to optimise the protection provided by galvanizing, micro-entrepreneurs must understand their role: for example, inserting venting and drainage holes, as well as other technical requirements,” Botha points out.
He adds that micro-enterprises should understand that hot dip galvanizing is a final phase in the downstream supply of steel products. It is therefore a finishing, rather than an applied coating: “It is not paint, or something that you can take and put on yourself. There are some misconceptions around what the market perceives as ‘cold’ galvanizing. This refers to a zinc-rich paint, applied to very small items in non-aggressive environments. With hot dip galvanizing, an item is dipped into a kettle of molten zinc at 450°C. There is a significant difference in the outcome.”
A two-pronged approach to protection
Botha notes that the end-user also requires education: “The person bringing in the work is not necessarily the one who gets to use the product. So the galvanized gate, the boat anchor; the burglar proofing or fencing is used by another party. This is about protecting both the business owner and their customers. It is a two-pronged approach.”
He stresses that the quality of galvanizing is driven by the steel itself. Once an article has been made, the dye is cast and there is very little that a galvanizer can do.
Different types of steel have a different chemical composition, which reacts with the zinc to give it a certain appearance. This varies from bright, shiny, silvery galvanizing to a dull grey. Corrosion control is the primary focus - with aesthetics being a secondary consideration.
Paint can be applied to galvanized steel - but again, the right choice of paint and preparation is essential: “We supply a lot of information on our website about how to prepare galvanizing for a paint coating. Once again, it comes to communicating, coordinating and cooperating around the galvanizing of an item.”
Botha says it is important for the small business to ask the big questions and to “be its own policeman” when it comes to quality control: “Small businesses should not only understand what they are dealing with - but should use the resources at their disposal, including the Hot Dip Galvanizing Association and the galvanizer.
For example, before buying steel, the small business should ask the galvanizer for their recommendations and referrals to reputable steel merchants, and request certificates for any steel that is bought.”
Ambassadors for galvanizing
“We would really like to see the education, training and advisory requirements of micro-enterprises more adequately catered to by established industry,” Botha emphasises.
The good news on the galvanizing front is that this is already happening, with galvanizers that are members of the HDGASA setting up remote depots specifically to accommodate the needs of micro-enterprises.
Many HDGASA member galvanizers provide for depots in remote areas where articles for galvanizing can be dropped off and collected. Access to galvanizing is therefore closer than if it was only available at the galvanizers’ main facilities,” he explains.
“A strong relationship with a galvanizer gives the micro-entrepreneur opportunities over time. For example, the better the relationship, the better the quality of the products coming in, the welding and the preparation for hot dip galvanizing. Ultimately, this is about growing both businesses. The solo micro-entrepreneur who starts out making one gate, could be making 20 by the end of the year,” concludes Botha

02/09/2025

The essential pillars of corrosion control are built on steel value chain collaboration,
co-ordination and communication, says the HDGASA

Duplex coating - combining hot dip galvanizing with painting - is an extremely effective method of corrosion control.
“Paint on hot dip galvanizing is an excellent system, but it does require that everyone in the value chain understands the requirements for best practice,” says Robin Clarke, Executive Director of the Hot Dip Galvanizers Association of Southern Africa (HDGASA).
Several award-winning projects demonstrate its efficacy. These include the Kirstenbosch Gardens walkway - the steel work on the Cape Town soccer stadium - and the Standard Bank facade in Maputo. All required high levels of corrosion control, as well as architectural synergy with their surroundings.
Grappling with technicalities
The HDGASA frequently assists designers, architects, fabricators, galvanizers and paint professionals regarding the best approach to take to the duplex coating process - and its website includes useful documentation and methodologies to guide them.
For example, Clarke explains that a structure may require a paint over-coating to prolong service life in harsh marine and agricultural locations, exceptionally high pollution areas and corrosive micro-environments within processing plants.
However, both aesthetic and legislative requirements may play a role: “These might relate to a specific aesthetic to complement the surroundings - or a legislative requirement such as colour coding of pipelines, or meeting Civil Aviation Authority (CAA) requirements with regard to high-rise structures in and around airports or flight paths,” he advises.
Tried and tested corrosion control
Clarke describes hot dip galvanizing as a well-established, tried and tested, preferred corrosion control method. Extensive research between the 1940s and 1960s on hot houses in the Netherlands produced a very repeatable outcome when it came to service life. The same applied to certain paint systems. These were put onto the same galvanizing base as a third leg of the experiment - and the outcome was that the lifetime of the coating exceeded the sum of the two individual parts by at least 1.5 times in aggressive environments and up to 2.8 times in less corrosive situations.
Clarke explains that laboratory tests also determined that when paint became porous, the zinc from the galvanizing process plugged and sealed the micro-porosities, giving new life to the coating.
Another benefit is avoiding under-creep on a paint system: “If the paint is penetrated, the steel can rust under the paint. That does not occur when you have painted onto a galvanized or zinc-based coating. The zinc will sacrifice itself to restore the coating and, if it cannot, it will sacrifice itself to protect the carbon steel substrate.”
Collaboration and co-ordination to mitigate corrosion
Once duplex technology has been specified, important decisions around steel selection and preparation follow.
The HDGASA frequently advises about the best corrosion control approach in extreme environments, specifying silicon-controlled steel in terms of the SANS 1471 (parts 1 and 2) guidelines.
“The best manufacturing practice starts with ensuring that you select the most appropriate steel - which is silicon-controlled steel - and ensure the consistency of your steel supply throughout the project. If this is a substantial project that requires various steel suppliers, it will be very difficult to deliver the same paint aesthetic,” Clarke observes.
Clarke adds that, in terms of SANS 14713 for best manufacturing practices, the design must ensure an even flow of cleaning materials across the steel articles, address best practices in terms of welding, control of de-fluxing and anti-spatter. Safety is also paramount in the case of enclosed containers, where venting and filling holes need to be placed appropriately.
Communicating to achieve the perfect outcome
Clarke says the HDGASA recommends commencing with a gentle sweep blast of air to remove any products of oxidation, remnants or contaminants on the surface.
“We advocate very strongly that the paint manufacturer makes a recommendation in accordance with the ISO 12944 standards, which relate to a variety of painting systems that will be effective depending on the coating durability required for the project,” he says.
He also emphasises that the paint coatings for a single project should come from the same manufacturer to avoid incompatible paint.
“The engineer, the architect/designer and fabricator must inform the galvanizer that the material is to be over-coated or painted before the galvanizing process starts. At that point, the galvanizer and the painter will also need to liaise regarding the requirements for post-galvanizing surface preparation.”
“The painter will have looked at the HDGASA’s codes of practice and prepared the surface before following the manufacturer's recommendations to ensure that the paint is correctly mixed, applied and cured.
Therefore, adherence to the methodology of collaboration, co-operation and communication will ensure that the client ultimately receives a hot dip galvanized and painted article that - instead of lasting under ten years, will have a service life of double that,” Clarke concludes.

28/08/2025

“Bad Medicine for the Steel Industry?”
XA Global’s latest blog post delivers a sharp and timely critique of ITAC’s proposed steel tariffs, framing them as a potentially damaging intervention in an already fragile industry. The piece opens with a striking observation: one steel importer stands to see their duty liability spike by R119 million the moment the tariffs take effect. That figure alone sets the tone for what follows, a sobering analysis of policy, ideology, and unintended consequences.
CEO, Donald Mackay, situates the tariff proposal within a broader global trend toward localisation, drawing parallels to the Trump-era mantra of “importing is bad, local manufacturing is good, exporting is best.” It’s a worldview that casts trade decisions in moral terms, where buying local becomes a patriotic act and importing a kind of economic betrayal. In theory, localisation promises jobs, growth, and self-sufficiency. But XA Global urges readers to look beyond the rhetoric.
The real problem, they argue, is structural and global. China’s relentless overproduction has flooded steel markets worldwide, and even with R2 billion in support and aggressive protectionist measures, ArcelorMittal South Africa is teetering. The rise of subsidised mini-mills, producing steel from scrap, only adds to the glut, squeezing traditional producers further. The author’s metaphor is biting: this is “a crisis wrapped in a bubble inside a policy failure,” and tariffs, they suggest, are not the cure but a dose of “Bad Medicine.”
Even the potential upside, R6 billion in duties collected, comes with caveats. The author is sceptical that this will meaningfully shift demand to local suppliers. Tariffs, by design, reduce competition and raise prices. And when prices rise, consumption tends to fall. What’s especially troubling is the structure of the proposed duties: 77% apply to intermediate goods, 14% to capital goods, and just 9% to final consumer products. That means the pressure lands squarely on the upstream inputs that feed downstream industries, where 90% of steel-related jobs reside.
Steel is everywhere, from paperclips to pipelines, and making it more expensive has ripple effects across the economy. XA Global acknowledges ITAC’s difficult role in balancing competing interests across a complex value chain. Rebates exist, but they’re conditional, often costly to access, and subject to shifting regulatory requirements. They’re not a panacea.
Perhaps the most damning insight comes at the end: of the 819 companies that imported over R10 million worth of affected products, only 101 responded to ITAC’s investigation. The silence is deafening. Whether due to complacency, confusion, or misplaced faith in industry bodies, the lack of engagement has left ITAC with a narrow evidence base. As the author warns, “If you don’t speak up, how can you expect ITAC to hear your words?”
The blog doesn’t claim to have all the answers, but it does pose a critical question: is this truly “Bad Medicine,” or did the industry bring it upon itself by failing to act? Either way, the implications are profound.

23/06/2025

Vertical integration: potential ‘golden thread’ pulling the steel supply chain closer together

Strategic partnerships carry and add value across the entire industry – and those between steel fabricators and hot dip galvanizers provide invaluable opportunities to improve efficiencies and quality control, says Robin Clarke, Executive Director of the Hot Dip Galvanizers Association Southern Africa (HDGASA).
“If we want to be globally competitive, it is imperative that all in the South African steel industry work together. Balanced vertical integration is key. Through developing cohesively integrated relationships - where we actively take ownership of the outcomes - we will create the economies of scale required to deliver quality at the correct cost,” Clarke maintains.
Balanced integration
In the context of the fabrication and galvanizing sectors, Clarke explains that although the ultimate vertical integration is predicated upon capital investment and equity, a wider variety of options to partner or collaborate can be put on the table: “Vertical integration happens when companies take ownership of suppliers, their own conversion process, as well as distribution - thereby increasing production efficiencies and improving cost and quality control, for the benefit of mutual customers.”
Despite this impressive array of potential benefits, there are also some challenges for those seeking equity partnerships. These include access to upfront capital for both shareholders - and investment in specialised technology required for different applications (galvanizing of fasteners versus larger poles for example); as well as potential misperceptions around the creation of monopolies.
“Bearing all this in mind, balanced integration is required to exclude the risk of over-specialisation, to take into account changing market conditions and to ensure industry versatility.
As Africa offers moderate steel product volumes with diverse requirements, retaining the flexibility to pivot and take advantage of a wider variety of opportunities within the market is important,” Clarke acknowledges.
Despite some challenges, the benefits of balanced vertical integration are manifold.
“Hot dip galvanizing provides corrosion control for steel and iron articles. So, the typical workflow may be the design of the steel article, sourcing of the steel best suited to galvanizing, the fabrication of the article, the hot dip galvanizing process itself and, finally, distribution to the site - upon which the customer takes ownership. It is imperative that each phase along this value chain operates at optimal efficiency to achieve global competitiveness,” he explains.
Successful vertical integration
Clarke points out that there are already local examples of successful vertical integration. Fabricators of transmission towers and road furniture have added galvanizing capacity to their manufacturing processes.
“Furthermore, there are joint ventures in the manufacturing and galvanizing of earth retention parts for mining and road construction - as well as in the fasteners sector,” he observes.
Some galvanizers also offer paint solutions and can specify duplex coating options for extremely corrosive environments.
Horizontal integration
Examples of horizontal – or sideways - integration within the galvanizing sector include co-operation between galvanizes and processors of zinc ash and dross for conversion into zinc- based products such as fertilizers, pharmaceuticals and chemical additives - and the reprocessing of spent pickling acid for re-use.
Beyond fabrication
On large projects, Clarke proposes that service providers consider teaming up in the spirit of integration - thereby achieving the necessary economies of scale, and improving their respective logistical efficiencies.
Through being fully aligned, stakeholders can extend this beyond simply securing the contract: “If you have a single point of responsibility in a vertically integrated chain, purchasing power increases - as does the speed and efficiency of production. Also, an integrated quality control system spans the entire project interface, minimising disputes and expediting resolutions to potential problems – all of which is ultimately beneficial to customers ” he continues.
The HDGASA has found that this also facilitates effective standards and quality training of integrated and aligned teams: “We are still providing the same information, but we are now talking to a wider and better aligned audience.
In this way, it is possible to ensure that standards and quality are specified and agreed upfront. When that happens – and in much the same way as successful vertical integration does – quality standards run like golden threads pulling the various stakeholders in the steel value chain closer together,” Clarke concludes.

31/03/2025

The HDGASA Golf Day - Invites players and sponsors for a day of networking and engagement while having a pleasant and revitalizing day of Golf with us at Benoni Lake Golf Course. Don't delay book today!

06/03/2025

Investment, import limitations to benefit local steel industry

An image of a steel beam undergoing hot dip galvanisingPreviousNext
HOT DIP GALVANISING Steel must be of a good quality to be galvanised to a standard that is acceptable for use in various South African applications

28th February 2025

By: Trent Roebeck

Features Reporter

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The looming closure of steelmaker ArcelorMittal South Africa’s (AMSA’s) long-steel plants in Vereeniging, Gauteng, and Newcastle, in KwaZulu-Natal – while temporarily postponed for the month of February – is set to result in 3 500 people losing their jobs.

Professional body Hot Dip Galvanising Association South Africa (HDGASA) executive director Robin Clarke believes that various manufacturers, mines and other industry players will be affected by this closure, as well as more than 100 000 residents in those communities, especially those who are part of the downstream steel supply chain.

The overall situation remains in flux, with discussions continuing ‘behind closed doors’ between AMSA, government and steel industry associations representing the interests of the downstream steel sector – as well as labour unions and affected local communities.

“In light of this, my comments on behalf of the HDGASA therefore reflect both the ongoing uncertainty and the potentially damaging outcomes should AMSA forge ahead with its decision to shut down these operations,” Clarke emphasises.

He points out that, should the proposed closures go ahead, the loss of AMSA’s long-steel facilities will also see the loss of the steel sector’s skills base, making it difficult to produce specialty steels.

“Government’s inability to facilitate economic growth in the steel industry has led to an over-reliance on ‘import culture’ and may well lead to the de-industrialisation of the South African economy,” he adds.

The increased reliance on imported steel products continues to put the steel industry and AMSA’s operationality at risk – to such an extent that industry players are calling on government to implement import tariffs, invest in solutions that alleviate logistics- related issues at ports, and invest in transport and other key infrastructure.

“We need to return to the mindset and scenario of 2010 to 2012, when stadiums, airports and other facilities were being built and both the construction and steel sectors were thriving. “We need to build the bridges, install the power lines, fix the water supply, build schools and hospitals, and create volume and a fair and balanced economy – where natural market forces will determine who thrives, strives and survives,” he posits.

However, the boosting and growth of the steel sector depends on an environment that facilitates economic growth, job creation, skills development and reasonably priced, “high-quality” steel products that are manufactured and refined locally.

This is because imported steel products may not always be of a quality that local galvanisers require from steel product manufacturers and other downstream steel sector players.

“The manufacturer and the galvaniser do not want to pay for excessive zinc pick-up; and the galvaniser does not want to be criticised for producing an overly coarse finish because the steel is highly reactive or of poor quality,” adds Clarke.

Imported steel products also pose other challenges, including late deliveries and incorrect product specifications or being in the incorrect condition. This, in turn, results in commercial and infrastructure projects being delayed and, consequently, hampers the development of a successful steel sector.

“It is impossible to reduce our reliance on imported product unless we build up a competitive industry that can compete with imports. The current crisis within the steel sector is not just about AMSA, but about whether the steel sector in South Africa can win despite international competitors; considering local infrastructure shortcomings, incorrect labour practices, red tape and even the lack of export incentives – which are all challenges.

“All we can do is try to be competitive through innovation. This is about price and quality – as well as about the steel value chain being enhanced by retaining specialist skills and doing research and development around specialist steel and steel products,” Clarke observes.

For these reasons, the HDGASA has lobbied government to create a more sustainable environment by investing in the local steel sector and reducing the reliance on imports. The HDGASA has also worked in close collaboration with the Newcastle Crisis Committee – of which it is a member – to revise the decision to close the AMSA mills in 2023 and 2024, along with 28 steel associations, other institutes and the downstream sector.

Clarke believes that the creation of volume- driven demand, and resulting economic relief, is the only way forward, and states that the HDGASA continues to lobby government to revive the steel sector and create employment through beneficiation and industrialisation.

“We can only appeal to government to engage with urgency and facilitate working groups that will find realistic, sustainable solutions before further de-industrialisation undermines local economic growth and results in even more job losses,” he concludes.

Edited by Nadine James
Features Deputy Editor
An image of a steel beam undergoing hot dip galvanisingPreviousNext
HOT DIP GALVANISING Steel must be of a good quality to be galvanised to a standard that is acceptable for use in various South African applications

28th February 2025
By: Trent Roebeck
Features Reporter
The looming closure of steelmaker ArcelorMittal South Africa’s (AMSA’s) long-steel plants in Vereeniging, Gauteng, and Newcastle, in KwaZulu-Natal – while temporarily postponed for the month of February – is set to result in 3 500 people losing their jobs.

Professional body Hot Dip Galvanising Association South Africa (HDGASA) executive director Robin Clarke believes that various manufacturers, mines and other industry players will be affected by this closure, as well as more than 100 000 residents in those communities, especially those who are part of the downstream steel supply chain.

The overall situation remains in flux, with discussions continuing ‘behind closed doors’ between AMSA, government and steel industry associations representing the interests of the downstream steel sector – as well as labour unions and affected local communities.

“In light of this, my comments on behalf of the HDGASA therefore reflect both the ongoing uncertainty and the potentially damaging outcomes should AMSA forge ahead with its decision to shut down these operations,” Clarke emphasises.

He points out that, should the proposed closures go ahead, the loss of AMSA’s long-steel facilities will also see the loss of the steel sector’s skills base, making it difficult to produce specialty steels.

“Government’s inability to facilitate economic growth in the steel industry has led to an over-reliance on ‘import culture’ and may well lead to the de-industrialisation of the South African economy,” he adds.

The increased reliance on imported steel products continues to put the steel industry and AMSA’s operationality at risk – to such an extent that industry players are calling on government to implement import tariffs, invest in solutions that alleviate logistics- related issues at ports, and invest in transport and other key infrastructure.

“We need to return to the mindset and scenario of 2010 to 2012, when stadiums, airports and other facilities were being built and both the construction and steel sectors were thriving. “We need to build the bridges, install the power lines, fix the water supply, build schools and hospitals, and create volume and a fair and balanced economy – where natural market forces will determine who thrives, strives and survives,” he posits.

However, the boosting and growth of the steel sector depends on an environment that facilitates economic growth, job creation, skills development and reasonably priced, “high-quality” steel products that are manufactured and refined locally.

This is because imported steel products may not always be of a quality that local galvanisers require from steel product manufacturers and other downstream steel sector players.

“The manufacturer and the galvaniser do not want to pay for excessive zinc pick-up; and the galvaniser does not want to be criticised for producing an overly coarse finish because the steel is highly reactive or of poor quality,” adds Clarke.

Imported steel products also pose other challenges, including late deliveries and incorrect product specifications or being in the incorrect condition. This, in turn, results in commercial and infrastructure projects being delayed and, consequently, hampers the development of a successful steel sector.

“It is impossible to reduce our reliance on imported product unless we build up a competitive industry that can compete with imports. The current crisis within the steel sector is not just about AMSA, but about whether the steel sector in South Africa can win despite international competitors; considering local infrastructure shortcomings, incorrect labour practices, red tape and even the lack of export incentives – which are all challenges.

“All we can do is try to be competitive through innovation. This is about price and quality – as well as about the steel value chain being enhanced by retaining specialist skills and doing research and development around specialist steel and steel products,” Clarke observes.

For these reasons, the HDGASA has lobbied government to create a more sustainable environment by investing in the local steel sector and reducing the reliance on imports. The HDGASA has also worked in close collaboration with the Newcastle Crisis Committee – of which it is a member – to revise the decision to close the AMSA mills in 2023 and 2024, along with 28 steel associations, other institutes and the downstream sector.

Clarke believes that the creation of volume- driven demand, and resulting economic relief, is the only way forward, and states that the HDGASA continues to lobby government to revive the steel sector and create employment through beneficiation and industrialisation.

“We can only appeal to government to engage with urgency and facilitate working groups that will find realistic, sustainable solutions before further de-industrialisation undermines local economic growth and results in even more job losses,” he concludes.

Edited by Nadine James
Features Deputy Editor

29/01/2025

Turn up the volume to boost sector recovery, says the Hot Dip Galvanizers Association Southern Africa (HDGASA)
South Africa’s steel industry is at a crucial tipping point, and a carefully considered revision of the Steel Masterplan may rescue and spark much needed economic growth, believes Robin Clarke, Executive Director of the Hot Dip Galvanizers Association Southern Africa (HDGASA).
“We as the HDGASA will add our voice, making recommendations on behalf of the galvanizing sector to government to not only revise policy - but also play its part by providing the industry with the much-needed volumes to ensure its future viability and sustainability,” Clarke advises, adding that the complex subset of issues that has plagued individual steel sector role players can be addressed further down the line.
He maintains that agreement must be reached against a broader backdrop of the downstream steel value chain recovery: “For example, in the galvanizing sector, there is a very clear link between the health of the steel sector and the well-being of galvanizers. Whilst galvanizers have fortunately not lost market share to other corrosion control technologies, they have been negatively impacted by the overall decline in volumes due to the substantial decline in steel consumption,” he points out.
Observing that discussions always revolve around ‘levelling of playing fields’, Clarke warns: “The challenge for the local steel sector at present is simply to ensure that there is still a playing field at all! It is this that will create an environment in which to unpack more contentious issues and put the steel sector on the path to real remedial action.”
Steel sector stalemate
Clarke explains that the South African steel sector has been in decline since 2014. Currently, although it has the capacity to produce some 10 million tons of steel per annum, consumption hovers around four million tons – and 13 to 15% of that is imported.
Lack of demand and falling volumes have driven up local steel prices, a situation exacerbated by rocketing input costs, the energy crisis and infrastructure bottlenecks. This has also coincided with a global steel oversupply - which saw international prices fall and exporters ready to sell cheaply into struggling markets, such as South Africa.
“Government was called upon to address this enormously complicated situation and, circa 2019, we saw the formulation of the Steel and Metal Fabrication Master Plan, commonly referred to as the ‘Steel Master Plan’. Experts were brought in and a well-intentioned and very detailed plan was developed. However, in our view, that plan lacked oversight. It certainly had merit - but failed due to its complexity,” Clarke notes.
The danger now is that as soon as any revision of the Steel Master Plan is published for public comment, there will be objections. Given the current state of the steel sector, it simply does not have time for these delays, Clarke observes.
“Ultimately, policymakers need to address the steel sector challenges in two parts: focusing on the upstream supply chain (steel producers) and on downstream businesses including hot dip galvanizers.
“Both of those sectors have unique challenges, however, there is commonality between the two – both are losing jobs. An increase in steel demand and volumes will reverse this negative trend, so robust steps to ensure this is achieved are a priority,” he maintains.
Galvanizing demand
Complicated polices take too long to implement, Clarke explains: “Once we have created the necessary volumes, steel companies in the upstream and downstream sectors can lobby government regarding the specific subset of problems which impacts them. While we do not believe that there is any one ‘silver bullet’ or instant panacea for the steel industry, we believe that introducing demand-driven volumes will effectively buy the industry more time to reassess its challenges, and look at why the steel sector is not competitive.”
In line with this strategy, the HDGASA is appealing to government to get the process rolling by releasing gazetted infrastructure builds, streamlining IPP (Independent Power Procurement) agreements and providing orders - and timelines - for the delivery of long-awaited projects such as the transmission line expansion projects mooted by the National Transmission Company South Africa (NTCSA), formerly known as the Eskom Transmission division. The construction of an estimated 14 000km of transmission lines - which will require at least 450 000 tons of steel over the next 8 to 10 years - will have a significant impact.
“However, the immediate challenge is the rather precarious state of the balance sheets of state-owned enterprises (SOEs). This may tempt some to bypass the South African manufacturing sector and buy cheaper imported steel. Nevertheless, we remain hopeful that there will be a balanced perspective related to the retention of local production capacity for strategic reasons, as well as for job creation,” he concedes.
This will have a very positive domino effect: “It will give us an opportunity to reinvest, modernise and become competitive. We will see positive outcomes not only in the local economy, but also across the continent - particularly Sub-Saharan Africa. It is a case of applying the right remedial action to kick-start steel sector recovery,” Clarke concludes.

Hot Dip Galvanizers Association Southern Africa

02/09/2025

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