Cheap cement imports are having a devastating impact on the local cement manufacturing market according to a research firm Databuild.
Morag Evans, Databuild’s chief executive, said in a statement on Wednesday that cheap and inadequate cement imports from countries such as China, Vietnam and Pakistan would have a long-lasting negative effect on the local market.
“In an industry already in the grips of a severe downturn owing to the decline in infrastructure development, not only are these imports negatively impacting the competitiveness of our local manufacturers, but independent studies have shown the quality of these international products to be inferior,” said Evans.
She highlighted the government’s inability to weed out these cheap imports, urging them to impose stricter regulations on cement products coming into the country.
“Consequently, government should urgently consider imposing stricter cement standards, while cement producers need to continue educating users on the importance of using cement that has been certified as compliant with technical regulations,” she continued.
“Allowing sub-standard products to be released into the market is unacceptable, as the long-term health, safety and environmental implications could be severe, to say the least.”
The Concrete Institute has presented a petition to the government to impose a 45%import tariff on cement, which Evans believes will help local manufacturers.
“Tariff restrictions have worked in the past. Imports from Pakistan declined in 2016 following the implementation of import duties of17-%in 2015,” she added.
She said the government needed to act now as the country could not afford another economic or industry downfall. – Bjorn Vorster