The Southern African Institute of Steel Construction (SAISC) Industry Breakfast on March 6, 2025 highlighted the steel sector’s resilience and commitment to innovation amidst ongoing challenges.
Amanuel Gebremeskel, CEO of SAISC, opened the session by stating, “The South African steel industry is here to stay” underlining the industry’s resilience despite ArcelorMittal’s long steel operations alleged closure. The sector remains robust, focused on navigating change and ensuring continued growth.
The South African steel sector sits in one of the most promising geographic and business spaces. While African urban and infrastructure investments are poised to grow rapidly, the local steel sector also happens to sit in close proximity to the mining industry which is in the midst of growth spurt due to geopolitical rivalries.
However, the breakfast also emphasized that exploiting these opportunities will require focus in two areas in the near future. Supply of a diverse range of steel and an industry wide drive for higher quality.
Addressing Quality and Market Dynamics
Quality and compliance were central to the breakfast discussions. SAISC board and Technical Committee members Cuan Lynes (DRA Global) and Axel Kayoka (Macsteel) addressed crucial aspects, emphasising proactive quality assurance and steel supply concerns.
Lynes shared insights from a recent trip to China, challenging preconceived notions about international steel production capabilities. “Quality is ultimately at the heart of the SA steel industry,” Lynes stated, advocating for independent material testing and a national steel quality forum to ensure consistent standards.
Kayoka addressed concerns about steel shortages, assuring that merchants will fill supply gaps through strategic imports. “Merchants will step in to fill this gap,” Kayoka stated, emphasising the importance of communication and collaboration to mitigate risks.
Adapting to Client Requirements and Industry Standards
The breakfast addressed the increasing complexity of client quality requirements, stressing the need for standardised industry practices. Participants discussed the importance of clear specifications and testing regimes to ensure compliance and avoid costly project delays.
Gebremeskel emphasised the SAISC’s role in providing information and facilitating collaboration. “The institute will focus this year on making information available in different ways,” he stated, highlighting plans for a dynamic information resource for engineers and a uniform industry-wide quality regime.
Innovation and Collaboration
“We need to continuously innovate and improve, make people think about steel in different ways,” Gebremeskel stated, echoing the need for reinvention. Participants were urged to see steel beyond the material, emphasising safety and aesthetics, aligning with successful projects.
“Irrespective of who’s supplying the steel, this industry is very robust,” Gebremeskel affirmed, emphasising the industry’s capabilities in fabrication, logistics, and project management despite steel mill uncertainties.
“By working together, we can pool our skills and resources, build relationships. South African-based steel participants are resilient and understand Africa,” Gebremeskel concluded, highlighting the importance of collaboration.
The breakfast concluded with a call for industry-wide collaboration and proactive measures to ensure quality and competitiveness. Participants discussed the need for cost-effective testing solutions and the importance of addressing coating quality in addition to material integrity.
SAISC, through such events, supports the industry’s navigation of challenges, fostering innovation and excellence across Africa. The SAISC remains committed to supporting its members in navigating these challenges, ensuring the South African steel industry continues to thrive in a dynamic global market.
Collaboration, quality, and strategic thinking, coupled with a proactive approach to change, will be essential for navigating current challenges and capitalising on future opportunities.
