Steel fabrication market declining: Official

THE steel fabrication market has been on the decline over the past few years and the way forward is to replace foreign fabricated steel, according to Steel Industries chairman Frank McQuoid.
He said after 40 years of being in the industry, he witnessed the total structural steel fabrication market dipping into a significant decline.
He said the best path forward for growth and increased employment was to replace foreign fabricated steel in the local market.
In the past two decades, PNG fabricators have lost up to 80 per cent of the structural steel fabrication market to cheaper imports.
“This means a market rebalancing is required,” McQuoid said.
He said a doubling of local production was both feasible and achievable by the PNG industry.
Steel Industries managing director Derek Hunter said navigating this pathway would come with challenges.
“It will require increased productivity, featuring new cost-effective computerised equipment and increased manufacturing floor space,” he said.
“While this all requires significant upfront investment, the future payoff will be globally competitive production costs, competitive pricing for our clients and increased local employment opportunities.”
Director of operations Paul Speedy, indicated that he had witnessed a positive market reaction to Steel Industries move toward import replacement.