Steel industries call for govt's protection to survive

Tema, Feb 16, GNA - Members of the Steel Manufacturers Association of Ghana (SMAG) on Wednesday renewed their appeal to government to expedite action on the ban on the export of scraps to sustain the Industry.

The members noted that the continued export of scraps was gradually bringing their operation to a halt.

This would not only put them out of jobs but have serious repercussion on the building industry as most of the building raw materials are manufactured by the industries.

The Association made the call at a meeting with the Parliamentary Select Committee on Trade and Industry at Tema.

The Steel Industries comprise Tema Steel Company, Wahome Steel Limited, Fero Fabbrik Limited, Westing Casting Limited and Selthi Steel Limited.

Mr Isaac Yeboah, Managing Director of Wahome who addressed members of the Committee urged them to consider their plight and give the ban a legal backing through the enactment of legislative instrument. Using his Company as a case study, he said the Steel Scraps form 70 percent of raw materials, which are mostly obtained from the local market while the remaining 30 per cent represent imported chemicals. According to him while the industries require about 200 tons of mild steel scrap a day to operate fully, they are able to purchase close to 90 per cent mostly made up of other steel material which absorb a lot of chemical and energy to melt.

On the contrary, Mr Yeboa said 600 tons of scraps are exported daily mostly as transit goods, saying that steps needed to be taken to save the industry so "the preventive pill in this case is a legislative instrument".

Mr Yeboah said the Steel Industries contribute largely to the growth of the economy through payment of taxes and also the production of building materials s like nails, iron rods and others.

After a lengthy debate on the issue, Honourable Nana Akomeah, chairman of the Committee gave the assurance that they would meet stakeholders to discuss developments in the industry and find a solution to it.

In the meantime, he urged the manufacturers to find ways of survival while the issue is being addressed at government level. The manufacturers mentioned the frequent power fluctuations as a major set back in their operations. 16 Feb 07