REDCLIFF-based Steelmakers Private Limited is facing operational challenges owing to a shortage of raw materials due to supply disruption caused by Covid-19.
The company used to rely on the now defunct Ziscosteel for its raw material supply and presently operates at 50 percent capacity owing to a shortage of scrap metal.
While scrap metal is largely available in the country, suppliers have ditched the local market – choosing to export to neighbouring countries such as South Africa, Zambia as well as Botswana who pay more.
Steelmakers, which briefly ceased operations at the height of the global pandemic, resumed operations following Government’s waiver of total lockdown on key industries.
The company had ceased operations at the commencement of the initial 21-day lockdown on March 30, as a measure to curb the spread of Covid-19.
In an interview, Steelmakers operations director, Mr Alamwar Upendra, bemoaned the shortage of scrap metal which he said was adversely affecting production.
