Shutdown shock

Following the international decline in the demand for silicon, the city’s economy was dealt a blow when it was learnt that one of Polokwane’s few major industries is shutting down operations today (Thursday), leaving between 150 and 200 employees without jobs at a time when Statistics South Africa announced that the unemployment rate of the country had increased by 1,4%.
The Silicon Smelter had become a landmark adjacent to the city’s landfill site on the Silicon Road over the past 27 years and provided a means of living for many families in and around the city.
Billy van Rooyen, Human Resources and Legal Corporate Manager of Ferroglobe Silicon Smelters said that it was no longer economically viable to continue with the production of silicon at the plant. “We have tried our level best to keep the plant in operation for as long as possible but could not sustain it any further,” Van Rooyen said.
Van Rooyen cited the international decline in demand for silicon, resulting in decreasing prices, as the main reason for the situation. “We were mainly dependent on the export of our products and there is currently an abundance of silicon in reserve internationally.
According to Van Rooyen, the company has already started with a process of retrenchment of workers and will only retain some people in skeleton positions. “We are placing the plant in care and maintenance mode to ensure that it will be possible to resume with production should the economic climate change,” Van Rooyen added.
The closure of the plant will have significant economic implications for the city. Ashley Rasebotsa, President of the Polokwane Chamber of Business said: “The closure of the Silicon Smelter will have a negative impact on the economy of the city of Polokwane from contributing towards the growing unemployment rate in South Africa to loss of opportunities for SMMEs doing business with the smelter.”
Nthebele Mankga, Spokesperson for the Eastern Region of the Association of Mineworkers and Construction Union, which represents 250 000 workers in the industry, could not be reached on his mobile phone for comment at time of going to print.

Story & photo: BARRY VILJOEN
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