The effect of the toxic combination of
AMSA’s INABILITY TO SUPPLY
More business responses
- Our business has been severely impacted as cold-rolled and galvanized steel is our primary raw material. We are forced to import steel, which, per ton, is cheaper before the duties are added on. For years we advocated for the removal of duties, to allow us and many other down streamers to be competitive in the global market. Due to the lack/no supply these recent months, customers have started looking at alternative packaging and/or importing from other countries. We have also been forced to reduce production to 50% due to the lack of steel supply, with demand increasing every week.
- We are unable to complete equipment production in time and, in some cases, we have had to redesign equipment to suit the available steel sheet thickness. This is affecting our credibility with overseas clients, to the point where we are potentially missing out on a second phase of the order.
- Orders placed since August have still not been delivered.
We currently have raw material to sustain us for the upcoming week maybe and we have been advised that the required raw material will only be rolled mid-November, but this is not a guarantee.
This leaves us with no other option but to shut down.
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Privileged and challenged to be South African.