https://www.engineeringnews.co.za
Africa|Coal|Eskom|Financial|Manufacturing|Power|Resources|Stainless Steel|Steel|Manufacturing |Operations
Africa|Coal|Eskom|Financial|Manufacturing|Power|Resources|Stainless Steel|Steel|Manufacturing |Operations
africa|coal|eskom|financial|manufacturing|power|resources|stainless-steel|steel|manufacturing-industry-term|operations

South African chrome firms warn of more than 1 200 job cuts

21st January 2020

By: Reuters

  

Font size: - +

JOHANNESBURG – South African chrome firms on Monday warned of more than 1 200 potential job cuts, citing power cuts, rising electricity tariffs and increased competition from overseas.

The potential layoffs highlight the risks posed to Africa's most industrialised economy by struggling state power utility Eskom, which is struggling with breakdowns at its coal-fired power plants and is mired in a financial crisis.

They also pile more pressure on President Cyril Ramaphosa's government, which is trying to contain 29% unemployment.

Joint venture partners Glencore and Merafe Resources could cut up to 665 jobs and have started consultations with workers at their Rustenburg ferrochrome smelter.

"The consultation process is as a result of deteriorating operations and market conditions across the South African ferrochrome industry, including unsustainable electricity tariffs and interruptions, cross subsidies and real cost inflation," Merafe said in a statement.

"The Rustenburg Smelter has suffered material financial losses which are expected to continue for the foreseeable future," the statement said.

The Rustenburg smelter has an operational capacity of around 430 000 t/y of ferrochrome.

Separately, Samancor Chrome notified trade unions about 599 potential job cuts at its smelting operations and corporate offices, a letter to trade unions seen by Reuters said.

Samancor, a private company, produces more than one-million tonnes of ferrochrome – used to make stainless steel – per year, according to its website.

A Samancor spokesperson was not available for comment.

Trade union Solidarity puts the number of job losses in South Africa's manufacturing sector last year at more than 7 000.

It said in a statement that Eskom's unreliability and rising tariffs were some of the main reasons for the layoffs.

Edited by Reuters

Comments

Showroom

AutoX
AutoX

We are dedicated to business excellence and innovation.

VISIT SHOWROOM 
John Thompson
John Thompson

John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.096 0.16s - 172pq - 2rq
Subscribe Now