Financial Daily from THE HINDU group of publications
Monday, Oct 03, 2005
Financial Daily from THE HINDU group of publications Monday, Oct 03, 2005 |
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Corporate
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Manpower Facor cuts production, lays off 40 pc of workforce at Garividi village Our Bureau
Visakhapatnam , Oct 2 FERRO Alloys Corporation (Facor) at Garividi village in Vizianagaram district has effected a production cut and laid off 40 per cent of the workforce from Saturday, citing the reasons of shortage of raw material and depressed market conditions. According to sources, two of the five furnaces were being shut down from Saturday due to raw material scarcity and 40 per cent of the workers (745 permanent workers and 200 contract ones) were being laid off. The five furnaces produce 200 tonnes a day. The unit, which produces high carbon and ferro chrome, has been pushed into a crisis following the price slump in the international market due to flooding of the market by cheap products from South Africa and China. The prices of ferro-alloy products, which used to be in the range of Rs 36,000- 41,000 a tonne, slumped to Rs 29,000 and then to Rs 25,000. According to the sources, the production cost a tonne works out to not less than Rs 30,000; therefore, it is unviable to produce and sell at the current rates. Compounding the problem is the hike in raw material prices and the difficulties faced in procuring them from Orissa.
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