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Copy of Provisional anti-dumping media release by ITAC

Provisional anti-dumping duties have been imposed on Portland cement originating in or imported from Pakistan with effect from 15 May 2015. This follows an investigation initiated by the International Trade Administration Commission of South Africa (ITAC) on 22 August 2014 after a number of local cement producing companies submitted an application on behalf of the SACU industry.

The companies comprising Afrisam (South Africa) (Proprietary) Limited, Lafarge Industries South Africa (Proprietary) Limited, NPC Cimpor (RF) (Proprietary) Limited and PPC Limited have submitted sufficient information and established a prima facie case that convinced the Commission to initiate an investigation on the basis of dumping, material injury, threat of material injury and causality. The initiation was published on 22 August 2014 in the Government Gazette (No 37915), under notice number 675.

On the other hand, the companies opposing the application include the Pakistani cement producers such as Lucky Cement Limited, Bestway Cement Limited, D.G Khan Cement Limited and Attock Pakistan Cement Limited.

Domestically, the following importers participated in the investigation: Elephant Cement (Pty) Ltd (Elephant Cement); Emzamvelo Trading CC (Ezamvelo), News Steel Works (Pty) Ltd (Newcastle); Picronamix Investment CC (Picronamix) and Anchor Africa Holdings (Pty) Ltd (Anchor).

During the investigation, the interested parties had an opportunity to make comments and submit the information they deemed crucial for the investigation. They also made oral representations to the Commission. All comments submitted within the specified periods of time, were considered by the Commission in making its preliminary determination.

The Commission found that SACU industry is suffering material injury through a decline in sales volume and output as well as profits and cash flow. The SACU industry also experienced price undercutting and price suppression. The Commission further found that a threat of material injury exists given that Pakistan has increased its production capacity; Pakistan`s exports to its traditional markets are declining and imports from Pakistan into SACU increased by over 600% between 2010 and 2013.

The Commission made a preliminary determination that Portland cement originating in or imported from Pakistan was dumped into the SACU market, causing material injury to the SACU industry.

Thus, in order to prevent further injury to the industry while the investigation is underway, the Commission has requested SARS to impose the provisional measures on imported Portland cement originating from Pakistan for a period of six months at the following percentages:


Provisional payment

Lucky Cement Limited 14.29%
Bestway Cement Limited 77.15%
D.G Khan Cement Limited 68.87%
Attock Pakistan Cement Limited 63.53%
All other exporters (excluding Lucky Cement Limited, Bestway Cement Limited, D.G Khan Cement Limited and Attock Pakistan Cement Limited 62.69%

Dumping occurs when companies export their goods to foreign markets at prices (export price) lower than what they charge for the same product in their home market (normal value). When dumping causes material injury to an industry in the market to which the products are exported to, it is considered unfair trade.

Therefore countries are entitled to act in terms of WTO rules and procedures. The idea is to the level the playing field between domestic producers and foreign competitors. Anti-Dumping investigations are conducted in terms of domestic law and consistent with the World Trade Organisation Anti-Dumping Agreement (ADA).


Full Financial Analysis


Bodibeng Trading Proprietary Limited

Founded by Mr Gaopalelwe Olebogeng from the Verdwaal Village in the North West province who is the sole managing member of Bodibeng Trading Proprietary Limited. Mr Gaopalelwe has previous experience in plant cleaning that he acquired during his tenure as a plant cleaner at another cement company in Lichtenburg. Bodibeng Trading Proprietary Limited employs 36 employees from the local community and currently has a short-term contract with SepCem which includes mentorship to ensure that it effectively provides the plant cleaning services at Aganang.


Mancamane Trading Enterprise

Mancamane is a black female-owned enterprise that started operating in 2010 as a plant cleaning, construction and mining supply company. Ms Daisy Maseko, a renowned entrepreneur, founded the enterprise in the Delmas area, Mpumalanga province and currently employs 28 permanent staff. SepCem adopted Mancamane into the enterprise development programme in 2014. The company is currently supplying plant cleaning services to the Delmas grinding plant and has demonstrated the ability to grow sustainably.


MM&JK Cleaning Projects Proprietary Limited

In 2014, SepCem contracted the cleaning services of MM&JK Cleaning Projects, an enterprise established in 2013 by Mr Sipho Mazibuko from a village called Springbokpan in the North West province. SepCem identified MM&JK Cleaning Projects as a well-managed enterprise that is appropriately suited to benefit from the programme. In the case of MM&JK, SepCem has partnered with another major industrial organisation to mentor Sipho.

The partner’s role is to assist MM&JK Cleaning Projects with inproving its cleaning skills through training, providing cleaning equipment and required detergents. SepCem’s role is to develop Sipho’s business management skills including cost management, record keeping and negotiation. SepCem is assisting MM&JK to develop a marketing strategy to increase its customer base to reduce the single-customer dependency risk and ensure that the company is sustainable. MM&JK Cleaning Projects currently has a three-year contract with SepCem for general cleaning at Aganang and employs 14 permanent staff.



Millicent’s Enterprise

Millicent’s Enterprise is 100% black female-owned and was founded by Ms Millicent Mahlabe, an entrepreneur from Delmas in the Mpumalanga province. The company was selected for the programme because it has historically demonstrated the ability to supply large contracts but lacks administration skills. Millicent’s has a good reputation and positive track record of being able to cater for large provincial government events.

SepCem secured Millicent’s catering services in 2013 for its canteen at the Delmas plant that provides meals to 150 employees. Millicent’s currently has seven permanent employees and several contract employees who are sourced as and when required.