Steel factories call for ban on scraps exports

Tema, Nov. 28, GNA - Steel Industries in the country have appealed to the government to save them from total collapse by giving legal backing to the ban on the export of scraps, which constituted the raw material base for their production.

According to the industries, about 12,000 workers are likely to lose their jobs, while building developers could also be affected should the companies fold up as result of in adequate scraps. At a meeting held on Tuesday at Tema, the Steel Industries noted that the government's ban on the exportation of scraps which has been in place since 2002 was not being respected.

The meeting was attended by representatives from Wahome Steel Limited, Ferro Fabrik Limited, Tema Steel Company Limited and Western castings Limited and the Maritime and Dockworkers Association. They appealed to the government to consider their plight and submit a bill on the subject matter to parliament to legislate in favour of the ban.

Mr Hopeson Yao Duho, Executive Director of Wahome, stated that an Industry requires about 270 tonnes of scraps for a daily production while about 600 tonnes of scraps is exported a day.

He said the situation was very frustrating and poses a threat to job security and urged the government to intervene quickly. Meanwhile, as the industries blame scrap dealers for being unpatriotic by exporting huge amounts of the products, the dealers also accused the industries of offering them low prices hence the export. Mr Stephen Nanawontor, Chairman of the Scraps Dealers Association, said apart from receiving higher prices for their scrap exports, the foreign market treat them with decorum while transaction is also faster. But representatives of industries at the meeting debunked this assertion and said the dealers were rather offering them substandard scraps while they exported the quality ones.

After a lengthy discussion, the two sides agreed to hold another meeting to resolve their differences.

In May 2004, the Ministry of Trade, Industry and President's Special Initiative under Dr Kofi Konadu Apraku announced that government had placed a ban on the export of ferrous scraps to ensure adequate supplies to local steel mills but the enforcement has not been effective.