Steel plant shutdown extension possible

A routine maintenance shutdown at Tata Steel KZN this month may be extended to August due to inhibiting market factors and the weak demand for steel. The ferrochrome plant normally embarks on an annual 30-day maintenance shutdown in winter to prepare for the next round of production.

High tariffs
However, TSKZN Managing Director Somdeb Banerjee told the Zululand Observer on Wednesday the fluctuating market, coupled with high electricity tariffs in winter, could lengthen the maintenance shutdown period. ‘In winter, the electricity tariffs are twice the normal tariff and these prices are applicable until 30 August,’ said Banerjee. ‘In addition, the market is extremely quiet at this time. ‘We do have customers who want material in August, but we have to evaluate the current position and possibly reduce production.

Routine
‘Stock levels are going down and steel demand has decreased drastically. However, TSKZN Chief of Human Resources and Corporate Affairs, Thami Msubo, reassured the public that the plant was not closing down. ‘This is part of our routine maintenance plan and is purely an annual shutdown.