Ban scrap metal exports

Ban scrap metal exports
Published: 21 June 2018
LOCAL steel manufacturers have called for a temporary freeze on the export of scrap metal until domestic demand is satisfied, as they seek to meet local steel product requirements.

The pledge comes at a time when President Mnangagwa is on record calling for the resuscitation of local companies to cut on the huge import bill on commodities that could be manufactured locally.

Manufacturers have been struggling to get raw materials locally, resorting to imports which are expensive.

Zimbabwe Institute of Foundry Men, an umbrella board dealing with the processing of steel products in the country blamed their dwindling fortunes to lack of raw materials.

The institute's vice-president Mr Itai Zaba said the association met and came up with the list of products they can make as well as resolving to implore the government a ban on the export of scrap metal.

"We have come up with a document that is going to government indicating our capacity as a sector, what we can produce, and our technological strength that is what we can make for import substitution.

"We have the capacity to produce most of the steel requirements of local companies and we came up with a list of products we are currently producing for the local market to utilise on.

"Most companies are exporting things we can produce locally like spare parts of mine machinery, and almost all of the steel requirements of NRZ among many other products. As the Institute of Foundry Men, we have come up with a list of products that we can produce for the local market but those companies with specific requirements can tell us and we manufacture products according to their needs," said Mr Zaba.

"The major problem afflicting our industry is lack of raw materials which is scrap metal, at the moment most companies in our sector are operating at less than 50 percent due to unavailability of scrap.

"Companies like NRZ and others have a lot of scrap and they can sell it to us rather than export it.

"Of course they get slightly more than what we pay here locally but cumulatively selling to local foundries benefits the country since we will be able to meet the steel requirements of the country."

Most traders in the country are exporting scrap metal which has left local foundries struggling to remain sustainable due to lack of raw materials.
- the herald
Tags: Metal,


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