Major steel producing companies in
Tema will soon hit the streets with a
possible shut-down of their factories
to protest against what they term as
the “harsh and unfavorable economic
environment” in the country.
Directors and managers of major steel
companies like Sethi Brothers Ghana
Ltd, Special Steel Limited, Ferro Fabric
Limited, Steel and forging Limited and
Wahome Steel Company Limited last
Friday held a meeting to plan for the
protest-march schedule -- which will
possibly take place by close of the
month.
A close source told the B&FT that the
present economic situation is not
helping their businesses to thrive, and
it is better to shut down their factories
for the meantime until things improve
rather than continually operate at a
huge loss; saying “we want
government to address the situation as
early as possible”.
According to the source, they operate
at a huge loss under the present
economic situation of the country --
citing high interest rates of the banks,
the continuous fall of the cedi against
major currencies, deplorable road
networks leading to their factories,
persistent power-cuts and frustrations
at the harbor when clearing raw
materials for their production.
“We are tired of having series of
meetings day-in and day-out on these
issues with the big men handling our
industry without any positive signs of
solving these problems for us. And our
companies are collapsing because we
keep on paying huge taxes, utility
bills, chunks of workers’ salaries
among others; and we are not getting
our investments back, because we
produce below production capacity
and people just can’t buy due to the
high cost of the commodity.
“So we are seriously planning to hit
the streets and subsequently shut
down our facilities until the situation
becomes stabilised,” one of the
directors who pleaded anonymity told
B&FT at the premises of Sethi Brothers
Ghana Ltd. on Friday.
One of their major worries, the source
said, is the recent increment in utility
prices which they said has seriously
affected cost of production and hence
compelled them to increase prices of
the commodity, which is not the best
B&FT can confidently confirm that
when it visited the factories on Friday
the situation at the Steel Melting
industries was not encouraging, and
they mean to keep their word and
strike very soon. For the first time in
about 15years ,the steel companies are
producing less than 30 percent of their
production capacity due to the current
economic problems.
About 3 months ago, a tonne of
imported iron rod (16mm and 12mm)
for instance, which was sold at GH
¢2,500 now sells at GH¢3,500 and
above, whiles the local one which was
sold at GH¢1,400.00 per tonne is sold
at GH¢2,400, about a 70 percent
increase.
“My brother, where will Real Estate
developers, construction firms and
landowners get the money to come
and buy our products looking at the
high cost of the commodity?” he
asked, adding that there is very little
they can do about the price hikes due
to cost of production.
They are calling on government to
slash taxes, utility bills, rates on
borrowing and solve the energy crisis
to give them uninterrupted power
supply. If government does this then
we will rescind our decision,” he said.
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