Business News of Wed, 29 Sep 19998
TEMA STEEL COMPANY
A few months ago Tema Steel Company was one of the gallant companies, which maintained its position on the Ghana Club 100. The Club 100 companies are the 100 leading companies in the country.
The Divestiture Implementation Committee has also cited Tema Steel Comapny as one of the companies whose turn around in terms of production outputs is significant in view of its past record.
Apart from it name and the existing infrastructure, which its new management maintains, Tema Steel Company Limited has assumed a new role and is now a major provider of steel products.
Since its repositioning Tema Steel Company Limited is now a joint venture between the Government of Ghana and private investors.
Tema steel Company manufactures steel products for the priority construction industry as well as the engineering industry.
It plays an active part in turning its facilities in a recycling industry conserving the natural resources and clearing the various scrap metals from the environment.
While the company's broad base objectives are to actively participate in the economic development of Ghana and also do mutually rewarding business, its philosophy is of continued development and diversification.
One significant achievement of its operation is increase of production levels from 6300TPA to 30TPA. The conversion efficiency of rolled products from the billets from the melting shop has been increased to 88 percent.
The company has achieved rolling production level of 21,500 tons per annum as compared to an average production level of 4,500TPA during the 27-year period of GIHOC's operation of the company.
Additionally sizes of reinforcing bars have been developed. The are 8mm, 10mm, 16mm, and 32mm.
As a result of good organisational structure, the management of Tema Steel Company limited recorded a turnover of about $10 million in 1997, a trend which is unlikely to improve as a result of problems besetting the steel sector.
The company is aware of the importance of the cost effectiveness of its products and is always on the lookout for ways in which it can reduce costs.
Over the years on account of poor performance, the employment figure went as low as 130 in 1991.
After the divestiture, the employment in Tema Steel shot up to 500 while minimum take home pay increased twentyfold as compared to 1991.
By making iron rods readily available to the construction sector at competitive prices the company has contributed significantly in reducing reliance on wood for building and has thus helped and continues to support substantially the slowing down of degradation of the ecology.
In 1977 Tema Steel Company contributed almost US$2 million to the foreign exchange portfolios and that is an encouraging sign that the company has assumed its position as the father of the steel industry.
As the company continues to chart its course of progress, research and development activities are pursed with innovative approaches, market survey and SWOT analysis.
But to such brains as Mr. M. Prasad, the managing Director of the Company, whose wisdom and foresight have brought the company to its current level if growth, his example and leadership skills will always be linked to the success story of the company.