Chronicle Editor
Michael Magoronga, Midlands Correspondent
REDCLIFF-based Steelmakers Private Limited is facing operational challenges owing to a shortage of raw materials due to supply disruption caused by Covid-19.
The company used to rely on the now defunct Ziscosteel for its raw material supply and presently operates at 50 percent capacity owing to a shortage of scrap metal.
While scrap metal is largely available in the country, suppliers have ditched the local market – choosing to export to neighbouring countries such as South Africa, Zambia as well as Botswana who pay more.
Steelmakers, which briefly ceased operations at the height of the global pandemic, resumed operations following Government’s waiver of total lockdown on key industries.
The company had ceased operations at the commencement of the initial 21-day lockdown on March 30, as a measure to curb the spread of Covid-19.
In an interview, Steelmakers operations director, Mr Alamwar Upendra, bemoaned the shortage of scrap metal which he said was adversely affecting production.
“We are only receiving a fraction of what we should be getting for normal production and as a result we are operating at 50 percent capacity,” he said.
Mr Upendra urged Government to control the export of scrap metal in order to empower local companies.
“We are appealing to responsible authorities to ensure that local raw material benefit local companies that add value before the goods are imported. Given this Covid-19 we also appeal to local suppliers to prioritise local industries,” he said.
Meanwhile, the company has started giving its workers food hampers to cushion them from the effects of Covid-19.
“We came up with a plan to motivate our workers amid the challenges induced by the global pandemic. We said as a company we do not want our workers to spend productive hours in queues for basic,” said Mr Upendra.
The hampers have commodities such as mealie meal, cooking oil, bath and washing soap, salt and meat.
The company is also adhering to strict Covid-19 mitigation guidelines like social distancing and temperature checks.
Steelmakers employs 600 workers but management has said that not all of them can report for duty under the circumstances.
“At the moment not all workers are reporting for duty given that we are operating at 50 percent capacity,” said Mr Upendra
The company produces about 2 000 tonnes of steel per month.
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