South Africa’s aluminium plates, sheets & strips imports drop as domestic foundry sector flourishes

South Africa is the manufacturing powerhouse of the African continent. Boasting an industrial tradition dating back 150 years, the country has emerged as a major automobile manufacturing hub. The automotive components industry is also well placed for global investment opportunities.

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Vehicle manufacturers such as BMW, Ford, General Motors, Mercedes Benz, Nissan, Renault, Toyota and Volkswagen have production plants in South Africa, while component manufacturers like Arvin Exhaust, Bloxwitch, Corning, Senior Flexonics have established their production bases here. This entire sector generates a huge demand for aluminium castings of which aluminium plates, sheets and strips form a crucial part.

The aluminium foundry sector in South Africa produces about 5,000 tonnes of components per year, of which about 60 per cent is supplied to the automotive sector. The Aluminium Federation of South Africa (Afsa) executive director Mark Krieg said in an industry gathering last year that about 91% of the total aluminium castings in the country is produced for the automotive sector. Yet, the demand for aluminium auto parts is so huge that the country has to import aluminium plates, sheets and strips from the international market.

South Africa imported 47591.28 tonnes of aluminium plates, sheets and strips worth US$135.64 million in 2016. The figure reflected a drop from the previous year's imported volume which stood at 52107.21 tonnes. Prior to that aluminium plates, sheets and strips imports in the country were typically low. However, the import is projected to further shrink in 2017. This year, South Africa is estimated to import 47483.9 tonnes of aluminium plates, sheets and strips, down 0.22 per cent from last year.

The top countries from where South Africa imported maximum volume of aluminium plates, sheets and strips in 2016 include Brazil (14585.821 tonnes), China (6908.83 tonnes), France (4433.39 tonnes) and Germany (8780.69 tonnes).

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Afsa is optimistic about the growth potential of the country's foundry industry which is being currently driven by the domestic automotive sector.

As Krieg put it, “Legislation worldwide is driving automotive companies and original-equipment manufacturers to consider fuel efficiency and reduced carbon emissions in the manufacturing of vehicles. One of the ways in which the manufacturers can accomplish this is by making vehicles lighter. “This has resulted in a very steady and rapid growth of the use of aluminium in motor vehicles."