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Ferro Coating Resins (Pty) Ltd applied for the creation of a temporary rebate on Tall Oil Fatty Acids, citing a lack of local supply.

Oleo Chemicals was the sole manufacturer in South Africa but closed its Tall oil Fractionation plant (TOFA) in 2020.  The absence of a substitute to manufacture alkyd resins is problematic as TOFA cannot be replaced with any another product.

The European Union (EU), the Southern African Development Community (SADC) and the European Free Trade Association (EFTA) are exempted from the 10 percent duty however, their prices are higher than other markets attracting a duty..

Alkyd resins are a key component in the manufacturing of paint coatings in SACU, so it is important that input costs are reasonable.

Interested parties have until 14 of January 2022 to respond.

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