The government’s decision to impose an import tariff on polyurethane prepolymers has dealt a blow to the South African agents of Australia-owned and -operated Era Polymers, but Johannesburg-based Diverse Urethanes remains upbeat and believes that there is room for the imported product in the local market.
The South African Revenue Service announced in March this year that the import tariff would increase from 0% to 10% for polyurethane prepolymers imported from outside the European Union.
This followed an application by a South African manufacturer, which, according to the International Trade Administration Commission of South Africa, stated that imports were eroding its market share and that the loss in sales as a result of imports could result in job losses.
Diverse Urethanes, which is one of the five main importers of the product, says the 10% import duty will result in higher prices of imported polyurethane prepolymers.
However, sales and business development manager Liz de Vincentiis tells Mining Weekly that the changes taking place in the urethane industry could open up opportunities for Diverse Urethanes.
“We believe that there is potential for Diverse Urethanes to grow our business and become a force to be reckoned with. We are a small company and are extremely flexibly. “This, together with our expertise and our relationship with Era Polymers stand us in good stead,” she says.
Diverse Urethane, which has a factory in Modderfontein that produces a range of products for the manufacture of mining components, will exhibit its imported Era Polymers elastomers at the Electra Mining Africa show.
Elastomers are used by companies manufacturing castings, such as valves, separators and rollers.
Diverse Urethane notes that the process ability of Era Polymers’ products sets it apart from its competitors’ products. But, despite offering what it believes is a superior product, the company says it is not easy to break into the market, as many customers are set in their ways.
Diverse Urethanes has been representing Sydney-based Era Polymers since 2012.
Hall 5 Stand B23