The Hindu Business Line : Codissia to import pig iron for foundry units

IN a bid to help the foundry industry tide over the crisis caused by the continuous escalation in the prices of pig iron, the Coimbatore District Small Industries Association (Codissia) has arranged to import 15,000 tonnes of foundry grade pig iron for distribution among the users here.

The association is also holding discussions with financial institutions for assistance to small foundry units to purchase pig iron from the imported consignment to meet their requirements.

In a statement, Mr Tee. Narayanaswami, President, Codissia, said while the Coimbatore-based foundry units required 20,000 tonnes of pig iron a month, the private dealers were able to supply just half of that.

Since PSUs such as Steel Authority of India Ltd and the Vizag Steel Plant were not making any substantial supply of pig iron, there was frequent price hikes by the private manufacturers. In the last one-year alone, the prices have gone up from Rs 8,000 a tonne to Rs 26,400 a tonne. This has come at a time when the fortunes of the small industries have started looking up after years of acute recession.

To help out the foundry units in the region, Codissia has arranged for importing 15,000 tonnes of pig iron through the Codissia Raw Material Society and the consignment is scheduled for June-July shipment. The approximate cost could be Rs 23,000 a tonne when delivered at the premises of the units.

Mr Narayanaswami said his organisation is talking to institutions such as the National Small Industries Corporation and nationalised banks for financial assistance. It is also taking efforts to ease shortage in respect of steel rounds, cold rolled sheets and coke.

He also expressed solidarity with the agitating furniture manufacturers protesting against raw material problems.

More Stories on : Bearings | tings & Forgings | Tamil Nadu

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page