EDD Logo
Republic of South Africa's flag

Media Advisory 2016

File: Press release | Minister welcomes action against collusion and price-fixing in the steel industry

pdf.png
File Size:
102 KB
Version
1.0

Minister welcomes action against collusion and price-fixing in the steel industry.

The Minister of Economic Development, Ebrahim Patel, today welcomed the announcement of a R1,5 billion fine payable by ArcelorMittal, the country's largest steel-maker, for price-fixing and collusion in the steel industry.

This is the largest single fine imposed against a single company thus far by the competition authorities. The company also undertook, as part of the settlement with the authorities, to invest R4,6 billion in new capital spending to upgrade its plants and improve its competitiveness. The settlement further provides for a pricing mechanism that will cap the company's margin on flat steel products for a period of five years.

"The action by the competition authorities is part of a crackdown against abuse of market power and price-fixing that undermine the performance of the economy, imposes unnecessary costs on downstream factories and damages local jobs," Minister Patel said.

"South Africa's competitiveness and industrial performance require an efficient basic steel supplier industry. High levels of concentration together with collusion undermine our national goals. Companies collude because they believe they can get away with it. Over the past seven years, the competition authorities have focused on collusion and abuse of market dominance involving key input costs in the economy, such as steel-making, fertilisers, construction and telecommunications and well as important basic goods such as bread, poultry and flour," he said.

"Our resolve is clear: we want to promote investment-led economic growth, not collusion-induced economic stagnation. South Africa is open for business and the message we want to send is that we will act against conduct that damages competition and jobs," Minister Patel said.

“This can be a boost for small business and for new investors,” he said.

"We look forward to seeing more competitive prices and will be monitoring price increases through the committee set up under the International Trade Administration Act, drawing on the information available from the company's customers. We will not hesitate to act against any further abuse of market power in the steel industry should this be necessary. We have recently brought into effect the provisions in the Competition Act that criminalise collusion and impose jail terms of up to ten years on directors and employees found guilty thereof," Minister Patel said.

For more information, please contact Dr Molefe Pule at 082 523 6775 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Latest News


Economic Development Department employees have pledged their commitment to the fight against corruption. Corruption in both the private and public sector has a detrimental effect on government's effort to deliver effective services to the people.  In signing the declaration, employees declare: 'I know, I act, I stop corruption - Fighting corruption is everyone's business.'

thumbnail My Anti-Fraud Corruption Pledge

 


 

eddd

PICC seeks specialists to fulfil infrastructure development targets


 

edd

EDD ANNUAL REPORT 2017 | 18


Profiles of people impacted by our industrial investment and infrastructure build programme

Profiles of people impacted by our industrial investment and infrastructure build programme 2016


Scam Alert
All Service Providers and Businesses

The Economic Development Department wishes to advise members of the public, particularly those in business, to be alert to a scam utilizing the logo of the Economic Development Department. The fraudsters involved send unsuspecting business operators a Request for Quotations for the provision of Solar Panels.

As the Economic Development Department, we wish to state that we do not have such a project, and therefore beware that the Request for Quotation is not from the Economic Development Department.

Please confirm any request you receive with our Supply Chain Management division on these details 012 394 3579. Report these fraudulent activities to the SAPS or call the Anti Corruption hotline 0800 701 701 or SMS to 39772 or send an email to fraud@economic.gov.za.


Broadway Sweets Factory vist | 9 June 2016
View more photos on Flickr