A senior figure in the South African catalytic converter industry has called on the government to provide it with substantial support, Engineering News reported yesterday (26th February).

Recent data suggest that a total of 13.5 million catalysts were produced over the course of 2008, down by 17 per cent from the previous 12 months, with a 45 per cent quarterly drop in the fourth quarter.

Hans Kuehn, Chairperson of the Catalytic Converter Interest Group, has explained that 1,000 jobs had been shed by the end of the year and the majority of the industry's 35 companies have shortened their production weeks.

He told the news provider: "I would say retrenchments of permanent staff are imminent for many companies during the first half of this year, unless we see a sudden change in the markets."

Mr Kuehn urged the government to clarify the details of the new Automotive Development Protection Programme, which will replace the Motor Industry Development Programme in 2013.

Companies were informed last year that they would not receive comprehensive backing from the strategy, but the department of trade and industry has since promised to liaise with officials to maintain the sector's contribution to the South African economy.

"While our industry is globally competitive on an ex-works basis, distance-to-market costs need to be covered by government incentives to keep the largest beneficiation industry for South African platinum-group metals in the country," added Mr Kuehn in the Engineering News interview.

South Africa currently has a 14 per cent global market share in the manufacturing of catalytic converters, which make use of pgms to reduce harmful emissions from vehicles.

Source:

South African autocat sector reports dismal fourth-quarter figures (26/02/09)
http://www.engineeringnews.co.za/article/sa-autocat-sector-reports-dismal-fourth-quarter-figures-2009-02-27