The company will supply about 80% to 85% of the total, with the balance to come from imports. Almost half of this flat product is converted into fabricated products for export in the automotive, tank and engineering industries. Columbus states that while this might sound positive, it shows that there has been no growth in manufacturing in the general domestic market and, as a result, no growth in employment in this sector. These export driven manufacturers are extremely automated and do not necessarily create significant employment. The key issue is the decline and closure of a number of manufacturers of consumer ware goods such as cutlery, hollowware, catering equipment and sinks. The stainless steel manufacturer says this sector of the industry has been decimated by a flood of imports from the East, particularly China. Following a particularly challenging period of demand in global stainless steel markets, it has been encouraging to see the strong performance of the South African stainless steel industry in 2010-11. As a result of the global economic crisis in 2008, consumption of stainless steel in South Africa declined dramatically in 2009 by some 30% over 2008. This was primarily due to the decline in manufacturing of stainless steel fabricated products, such as catalytic converters, ISO certified tank containers and capital equipment used in the mining and processing industries. So, while the recovery of the market back to the levels of 2007 and 2008 indicates growth, the real challenge is that the South African stainless steel market remains under threat.
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