VALCO's closure affects allied companies

Tema, March 16, GNA -- Aluminium Companies in Tema have expressed surprise at the sudden shut-down of Volta Aluminium Company (VALCO) as it would definitely impact negatively on their production. One of such companies, Pioneer Kitchenware Limited, (PKL) formerly Pioneer Aluminium Company said it anticipates shortage in their raw materials.

In an interview with the Ghana News Agency in Tema, Mr Kojo Safo, Commercial Manager of the PKL said the factory depends largely on VALCO through Aluworks Limited for its raw materials for the production of cooking utensils, among others.

He said with the current situation, the factory would have to import raw materials from China, Asia and India which is expensive and would definitely affect production cost.

With a maximum production capacity of 2,400 metric tones per annum and a current production of 40 percent, Mr Safo said the production is likely to reduce further.

Meanwhile, the Tema Municipal Principal Relations Officer of the Industrial and Commercial Workers Union (ICU), Mr. Morgan Ayawine, has called on management of VALCO and the government to expedite action to re-open the factory.

He noted that VALCO's contribution to the socio-economic development of the country is enormous, so delay in its re-open would have negative impact on families of the redundant staff, factories that depended on VALCO for their raw materials and the nation as a whole.

Mr Ayawine said after almost two years closure, VALCO's re-open in November 2005 was refreshing news to all Ghanaians.

VALCO has since Wednesday suspended its operations following inadequate power supply from the Akosombo Dam and most of the workers have to be laid-off.