South Africa's catalytic converter industry has added further pressure on the government to ensure that the proposed Automotive Production and Development Programme (APDP) keeps business in the country.

The catalytic converter manufacturing industry is the only beneficiary of the country's precious minerals - consuming 15 per cent of its annual platinum production - while its sub-sectors have created 36,000 jobs.

The planned 2013 shift from the Motor Industry Development Programme (MIDP), which is an export incentive, to the APDP is being seen by some officials as a threat to South Africa's prominence in the catalytic converter market.

Hans Kuehn, Chairman of the Catalytic Converter Interest Group (CCIG), has revealed that talks with the government have been "very positive" but warned that big decisions relating to the next generation of catalytic converters are already being taken.

Mr Kuehn also confirmed recently that the CCIG is in talks with the Department of Trade and Industry (DTI), whose automotive director Mkhululi Mlota has claimed that an entirely new framework could be necessary.

In an interview with Engineering News, Mr Mlota also noted that the export versus domestic sales balance needed to be neutralised to honour South Africa's commitments to the World Trade Organisation (WTO).



Source:

Autocat industry calls for 'substantial' new incentive regime (19/09/08)
http://www.engineeringnews.co.za/article.php?a_id=142707

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