TUESDAY, 11.00AM
ISCOR is considering ending production at its Pretoria steel mill after the loss-making plant failed to turn around despite cost cutting and production changes.
If the plant is mothballed, 1 400 jobs will be on the line. A decade ago the Pretoria mill led Iscor’s production, producing 800 000 tons of carbon steel a year and employing 15 000 people. However high input costs led to cost-cutting measures, with staff trimmed and production shifted to stainless steel in 1995. The R180-million conversion came to nought, however, as the bottom fell out of world stainless steel prices. In the last year the plant turned out only 45 000 tons of steel, about 10% of its capacity.
Iscor steel division MD Louis van Niekerk said the plant had been experiencing negative cash flow for some time and Iscor cannot continue to subsidise it. A decision on whether to permanently close the plant, mothball it or intorduce more stringent cost-cutting measures, will be taken in the next few weeks.