Manufacture of Other Rubber Products
Challenging macro-economic conditions and rising input costs continue to have a significant effect on the performance of the local rubber products manufacturing sector. Roleplayers have identified competition from low-cost imports, load-shedding, high labour costs, low levels of spending on research and development and inadequate investment in new technology as some of the reasons for the lack of growth of the sector. In March 2020, companies in the sector closed due to the national lockdown, although some were allowed to carry on producing essential products.
The volume of rubber products produced and their sales value increased in 2019, in an environment of declining investment in local mine expansions and new mines, which affected demand for conveyor belt systems, a lack of skills development, low spending by state-owned enterprises, low economic growth, competition from plastic products and cheap imports, and low demand from the construction industry. There are opportunities, however, in the local manufacture of complex components for the automotive sector, increasing exports, diversification, and value-add services.
Opportunities for SMEs
The manufacture of other rubber products requires specialised machines, involvement in fairly complex value chains and technological knowledge. The barriers to entry for small businesses are therefore high in the manufacturing space, but there are opportunities for these companies to be involved as suppliers of goods and services to manufacturers.
This report focuses on The Manufacture of Other Rubber Products and includes comprehensive information on production, developments and investments, and trade, employment and other relevant statistics. It includes profiles of 22 companies such as ContiTech Africa, Dunlop Industrial Africa, the largest conveyer belt producer in Africa, and Fenner Conveyor Belting (South Africa). Other profiles include Hudson Rubber Company, the continent’s largest producer of extruded rubber products, Multotec, Transvaal Rubber Company (Truco), and Weir Minerals Africa.