1,100 aluminium industry workers face job loss

1,100 aluminium industry workers face job loss –Dugad

Aluminium fabrication
| credits: metalspec.en.ecplaza.net

A total of 650 workers in Nigeria’s aluminium industry were sacked in December 2012, with 1,100 other facing an uncertain future, the Country Head, Tower Aluminium Plc, Dr. Jinesh Dugad, has said.

Dugad, who said this during a press conference and factory tour of the company at Sango Ota, Ogun State, blamed the development on poor government policies, which had affected the development of local industries adversely.

The Tower Aluminium boss did not only blame the Federal Government for the development, he also accused it of implementing importation policies, which have turned the country into a dumping ground.

According to him, the reduction of import duty from 20 per cent to five per cent in 2010 did more harm than good to the extrusion and manufacturing industry.

Despite cutting overhead costs as a result of the ‘unfriendly policies’, he said the country’s aluminium industry was still at risk.

 He said, “As an interim measure to reduce loss, Tower Aluminium laid off 450 workers in December 2012 and 70 per cent of the remaining on the Tower Aluminium’s payroll (1570 people) i. e. 1,100 people may be laid off very soon. In addition, all suppliers and contractors will be affected with reduced volume of operation.

"Also, First Aluminium Industry relieved 200 Nigerians of their employment in December 2012.”

Dugad, who revealed that his company had invested over $50m in its rolling mills, extrusion plant and colour-coating facilities over the last five years, lamented that many rolling mills in the country had folded up, while others were likely to shut down if the government refused to amend its policies.

He said, “Import duty on raw materials (Ingots and Billets) is the same as semi-finished and finished products. This is wrong. Local manufacturers cannot survive in this environment. This has thrown up traders who import coils to sell with no investments whatsoever in plants. Of the three operational rolling mills in the country, two have suspended operations. They are Qualitee Aluminium Industries Limited and First Aluminium Industry.

 “A fourth rolling mill,  Alo Aluminium Limited in Enugu with huge investments, though completed, did not start production because of the hostile operating environment. Many extrusion plants are shutting down also.

 “Tower Aluminium is the only company that is still operating its rolling mill. But under the prevailing unfriendly environment for the aluminium industry, this would only take a short while before it is shut down. And a lot of people will lose their jobs.”

Dugad, who expressed worry over government’s failure to protect local manufacturers, urged it to rescue the aluminium industry by applying favourable policies similar to those formulated to ensure the survival of the cement industry.

He said, “Local manufacturers need protection from the Federal Government against imports from unfair competition from China and other countries for better utilisation of available natural resources, employment generation, economic growth and industrialisation.

“Other developing countries like India and Brazil consolidated its domestic base before opening its economy to outsiders. Companies with rolling mills and extrusion plants should be allowed to import any shortfall arising from inadequate capacity vis-a-vis national demand for a period of seven years.”

CULLED FROM: PUNCH NEWSPAPER

February 6, 2013 by Sodiq Oyeleke

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Written by NEWSTRAWL ONLINE UPDATE

Sodiq Oyeleke is a Media, Human Resources, Project Management and Public Relations Practitioner