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Business News of Tuesday, 28 November 2006

Source: GNA

Steel Industry under threat

Accra, Nov. 28, GNA - Steel Manufacturers Association of Ghana on Monday said the steel industry was in grave danger since the ban on the export of steel scrap by the Ministry of Trade and Industry continued to be abused.

It said 600 tons of steel scraps were being exported daily in contravention of the ban and as a result of such exports the Tema Steel Company and Ferro Fabrik Company had been forced to lay off 200 and 100 workers, respectively.

A statement Mr Kojo Yankah, Media Consultant of the Association, and Mr M. J. Patel, a member of the Association signed said the local steel industries were being denied of 800 tons of scraps that it required daily thereby making it difficult for them to operate to the fullest capacity.

The Association said the local steel companies employed about 500 workers on average and, therefore, served as a source of employment for both skilled and unskilled workers in Ghana.

The local steel companies recycle steel products under hygienic conditions and environmental friendly surroundings thereby contributing to effective waste management.

The statement which said the Association was launching a campaign to save the industry to ensure the survival and growth of the local steel industries and that there was the need to rally and lobby all stakeholders, especially Parliament to pass a legislative instrument to ban the export of scraps.

It called on the Ministry of Trade and Industry; Customs, Excise and Preventive Service (CEPS), the law enforcement agencies and the general public to take necessary and appropriate measures to enforce the ban. The Association called on the general public to report to the Police or the CEPS Task Force of any known or suspicious activities of scrap exporters.