There is no time like the present to address the ongoing concerns of quality and training in the steel value chain, according to Amanuel Gebremeskel, CEO of The Southern African Institute of Steel Construction (SAISC).
Gebremeskel explains: “We especially need to safeguard the future of the downstream steel industry, which employs over half a million people. It is well known that the steel sector has experienced quality and training issues for several years. However, this has now become even more relevant.”
Steeling for change
Gebremeskel notes that the greatest risk remains the pervading uncertainty: “For example, in light of the well-publicised prospective closure of the ArcelorMittal (AMSA) long products division, this remaining operational – but without firm lead-times – could introduce another challenge. Projects are planned months, if not years, in advance and any fabricator trying to ensure procurement of materials requires supplier commitment. Decisions need to be made now.”
He believes steel could therefore be sourced from “anywhere and everywhere” – with importers searching for the best prices and most viable logistics. This, inevitably, brings up the issue of quality.
“For the foreseeable future, quality is going to be a significant issue in the steel sector. This dovetails with the question of human capital. With the loss of skills to retirement and immigration, are there enough people who can evaluate whether or not the steel is of good quality?”
Fabricators will need to implement stricter quality control of steel. At present, this process is based on trust. However, with the diversification of steel sourcing, this process must be rejigged. Quality training, supported by a stringent quality regime, is required.
Making its quality mark
With ever-greater pressure on steel merchants, mills and mini-mills to provide quality and adhere to standards, the SAISC’s proposed quality certification programme and quality mark will become more important than ever.
Drawing from well-established international best practices, this first-of-a-kind quality certification oversight programme will refine, monitor and uphold quality standards across the steel supply chain – and will be signified by its own steel quality certification brand mark or stamp.
This is on track for roll-out within the next 24 months, Gebremeskel confirms.
There is currently no independent regional assessment body to which the industry can turn for the measurement and enforcement of quality controls even on a professional, voluntary / self-regulated certification basis.
Poor quality comes at a high price
Gebremeskel adds that the entire value chain needs to be trained on quality because – as per the lesson of the national power utility failing to adhere to technical standards during the construction of certain major power plants – due to the use of poor quality products, fabrication and erection can result in costs running into billions of rands.
The programme will involve the training of staff in all aspects of quality at companies that apply to quality for the SAISC quality certification stamp. This will be followed up by the Institute’s steel experts who will monitor product and project quality before a company can qualify for certification.
Stamp of quality
As the future of South Africa’s entire steel sector could hinge on quality control, Gebremeskel is calling for an ‘all hands on deck’ approach, with stakeholders integrating quality into their business strategies, working closely with the SAISC on training and promoting the use of the SAISC quality certification stamp.
“Our ultimate vision is for this to be recognised as the highest voluntary quality certification stamp on the continent: setting the standard in Africa from a quality perspective – while also ensuring the sustainability of the critical downstream steel sector,” he concludes.
