STEEL GRINDING SUPPLIER GEARS
Gears and axles have been among the most successful localisation components within the DTI’ s APDP programme. Because of their weight and form factors, gearboxes and axles don’ t make sense to manufacture offshore and import for local vehicle assembly.
Gear innards, differentials, casings, and axles, are also valuable for local technical development. These steel components require precision machining, prompting South African gear and axle manufacturers to stay on trend with the latest precision-cutting tools and quality-control technologies.
Steel is the base material for the manufacturing of gearboxes, differentials, and axles. Engineers and suppliers cannot compromise on steel grades because gearboxes and axles are such crucial components, subject to high loads. But South Africa’ s steel industry has been in crisis for several years, with supply and demand dynamics badly mismatched.
Steel supply chain issues
The revised South African industrial development strategy( IDS) document, released this month, has called for increasing automotive assembly localisation from 38 % to 60 %. An ambitious undertaking. But what matters to South African gearbox, differential, and axle manufacturers is steel policy.
Mothballing of production and closures of South Africa’ s largest long-steel producing steel mills have a direct impact on automotive component manufacturers. Who are the buyers of long steel products.
Local steel production has shrunk by a third since 2018. The government is now in a paradoxical position, allowing imports to support automotive sourcing needs, thereby undermining the entire point of the APDP’ s supply chain localisation and incentives.
With body-on-frame vehicles among the most profitable and successful models in the APDP’ s incentives programme, the demands on axle and gear component manufacturers are real. Body-on-frame vehicles account for a significant percentage of South Africa’ s local automotive production, local offtake and exports. These vehicles have much higher load and tow ratings than other locally assembled vehicles, which are monocoque luxury or compact cars.
The South African gearbox and axle supplier community needs a diverse range of high-quality steels. From higher carbon grades that resist wear, for gear and differential innards, to steels with a midcarbon alloying and increased ductility, for axles, where shearing resistance is more important.
For manufacturers of axle and steel products, the steel supply chain needs price stability and sufficient grade diversity to meet specialist engineering and specification needs. Is the DTI’ s revised IDS document addressing issues in South African steelmaking?
WORDS IN ACTION 24 JUNE 2026