Hulamin requests for import duty hike on aluminium products

Africa's largest producer of rolled and extruded aluminium products, Hulamin, is asking the government to protect it from cheaper imports through higher import duties on all of its products to the maximum level of 15%. The move follows applications made to the International Trade Administration Commission (Itac) by steel makers, including ArcelorMittal SA, for tariff protection.

About 80% of Hulamin’s revenue comes from rolled products with the rest from complex extruded products. The group supplies the domestic industry and exports to Europe, North America, the Middle East and Asia.

Hulamin CEO Richard Jacob confirmed that the company had made an application to Itac for increased import duties. "We submitted two applications to Itac, one each for rolled and extruded aluminium products," he said.

Aluminium products produced by Hulamin are currently covered by a 5% duty. This came about after an exercise to cut tariffs that started in 2008 saw duties fall from 10% to about 5% by 2010. The application for protection is the second in five years for Hulamin. The last attempt was unsuccessful as Hulamin was unable to convince Itac that it was negatively affected by imports.

This time the company is more hopeful. Preparations for both of the applications began in November last year, but they needed to be supplemented to meet the stringent criteria required by Itac. Hector Molale, head of corporate affairs at Hulamin, said Itac had already made site visits to some of its operations and its rolled products application was well under way for both applications.

"We lodged application in November; they made contact with us in December, and at the beginning of January. They have done site visits now," Mr Molale said.

In its application Hulamin said it had been forced to cut its staff by 10%. In return for tariff protection it is likely that Hulamin will be expected to undertake investments in its operations as well as to make promises on preserving jobs.