The Eastern Cape Automotive cluster says that SA’s catalytic converter industry, once responsible for 16% of global production, will hit a wall over the next two or three years when a new EU regulation kicks in and that thousands of jobs may be at stake.
Euro 6 is the common name for European emissions standards coming into effect for passenger cars in the bloc on September 1 2015. But, according to one insider, the local industry has seen “no upgrades or investments of consequence” to meet this specification.
This is an extraordinary fact but few people will speak on the record. The reason, rumour has it, is that the industry is reaching for one last lifeline that might save it, and doesn’t want government upset by reports in the media. SA has by far the largest reserves of platinum and palladium, metals crucial to the catalytic converter industry. It is also hard to imagine a better example of beneficiation, which trade industry minister Rob Davies has repeatedly said is central to industrialisation. And, at a time when the motor industry is enjoying huge government support , one would expect the catalytic converter industry to be propped up too.
This hasn’t happened, for two reasons. The first is that the details of the motor industry’s new automotive production development programme (APDP) weren’t nailed down for years. “We’ve had seven years of policy uncertainty,” says a component industry insider.
Read More Here: http://mype.co.za/new/2013/06/thousands-of-jobs-may-be-at-stake/