Engineering news reported that South Africa’s Foskor Zirconia, a supplier of fused zirconia to the steel industry, would temporarily suspend operations, owing to a sharp pull back in demand, brought about by the economic meltdown.

The shut down was effective from March 28th until further notice.

The company said that demand for zirconia from the steel industry had dropped by more than 50%, which resulted in stockpiles of excess inventories, making its zirconia plant economically unviable.

Mr Charles Schmidt CEO of Foskor Zirconia said that “Zirconia is an industrial mineral governed by global commodity prices and market movements that we have no control over. The decision to close the plant temporarily is strategic.”

Mr Schmidt noted that the trade unions active on the plant, including the National Union of Mineworkers, have agreed to the suspension of operations, provided all 109 employees received full compensation.

(Sourced from Engineering News)