Financial Daily from THE HINDU group of publications
Monday, Feb 10, 2003
Financial Daily from THE HINDU group of publications Monday, Feb 10, 2003 |
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Industry & Economy
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Bearings, Castings & Forgings Foundries to down shutters today R.Y. Narayanan
COIMBATORE, Feb. 9 HEMMED in by the rising cost of the main raw material pig iron and the resistance put up by the customers against any increase in product price, the foundries across the country are observing a day's closure on Monday, seeking roll back of price by the pig iron manufacturers to the July 2002 level. The one-day closure of the foundries, mainly those doing job work and not captive foundries, is expected to result in a production loss of about Rs 75 crore. The foundry sector also wants a series of remedial measures including scaling down of the customs duty on imported pig iron and removal of anti-dumping duty on low ash coke to prevent the foundry industry, which has shown signs of revival in the past few months after prolonged recession, from slipping into sickness again. In an interaction with newspersons, Mr N. Krishna Samaraj, Chairman, the Institute of Indian Foundrymen (IIF), Coimbatore Chapter, said organisations such as the Indian Chamber of Commerce and Industry (ICCI), Coimbatore District Small Industries Association (Codissia) and the Southern India Engineering Manufacturers' Association (Siema) have also extended their support to the strike call by the foundries. Mr A.V. Varadarajan, President, ICCI, Coimbatore, said the cost calculations of the foundries go awry because of sudden increase in raw material prices, mainly pig iron. A lot of formalities have to be completed before price confirmation but these went haywire because of continued raw material price hike. But the buyers were not prepared to absorb the increased cost after suppliers commit themselves to a particular price.
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