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South African Steel Pipe Producers Robor Shuts Shop

Steel News - Published on Wed, 09 Oct 2019

Image Source: Engineering News
Once one of southern Africa's largest suppliers of steel, 90 year old Robor tube and pipe, will close its doors. Tiso Blackstar, which holds a stake of almost 48% in Robor, blamed its demise on the weak state of the economy and cheap Chinese imports, among other factors. In addition, delays in the signing of Independent Power Producer agreements with the South African Government and the well-publicised financial demise of Eskom have caused systemic harm to both production and revenue generation in South Africa’s steel tube and pipe manufacturing sector. It also said that new US import duties on imported steel, hurt Robor's sales of specialised steel pipe into the US oil and gas industry, previously a lucrative export market.

Tiso also blamed government for not extending import duty and tariff protection to downstream industries, "thereby exposing steel fabricators to huge margin erosion to compete with imported steel-manufactured goods".

Germiston-based Robor has seen a sharp slump in volumes over the past 18 months, and despite restructuring, cost-cutting and new deals with credit providers, have not been enough to stop the company's decline.

Source :

Posted By : Ratan Singh on Wed, 09 Oct 2019
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