Privatising Iscor ‘a mistake’ – Gigaba

Public enterprises minister Malusi Gigaba says the privatisation of Iscor under National Party rule was a “mistake.” Asked by FTW what plans the government had to support the local rail fabrication industry in the face of high steel prices, he said the import parity pricing policy of the existing two steel manufacturers (Arcelor Mittal and Evraz Highveld Steel) was “receiving priority attention” from government. This will be good news for all South African manufacturers using steel, as they find it hard to compete against companies in China which, although the iron ore and coal to fire the power stations is imported from South Africa, have among the cheapest steel prices in the world. One of the options being considered is the setting up of a third steel producer – either by the state or a private operator. “We need to create a third competitor, whether it is state owned or not,” he said.