Inferior steel hits construction industry

By Lalin FERNANDOPULLE

The construction industry is in a serious crisis due to the proliferation of sub standard steel which has jeopardised the country’s reputation for solid construction.

Industry experts said that the construction industry is in a serious crisis today due to the steel mafia which has spread its tentacles across the industry resulting in inferior construction.

The mafia in the cement and steel industry has rocked the construction sector with rise in concerns on the quality of construction. The construction sector is one of the main beneficiaries of peace in the country.

According to industry experts the steel industry will not be able to reap the full dividends of peace by compromising on standards. Experts cautioned that the country will not be able to woo foreign investors and accelerate development with the decline in construction standards.

CEO/Secretary General, Chamber of Construction Industries, Dakshitha Thalagodapitiya said that there is a large number of steel manufacturers who use scrap metal with billets to manufacture iron rods and added that the SLSI should conduct regular checks to bring culprits to book. “The use of inferior steel rods for construction can be disastrous for constructions. The Chamber has urged authorities to increase the number of raids and minimise the damage to the construction industry by the proliferation of sub standard steel products”, he said.

Steel is a vital component in the construction of multi-storey buildings. Large constructions could be at risk at the slightest tremor due to inferior construction material. The raw material to manufacture steel rods is imported as the processing technology is costly. Billets are imported from Russia, Ukraine and South Africa.

Certain steel rod manufacturers import billets and mix it with metal scrap to compete on price at the expense of inferior construction. Consumers are fleeced by bogus steel manufacturers who thrive on the ignorance of customers.

The Consumer Affairs Authority (CAA) seized a stock of sub standard steel rods from an Indian steel manufacturing company in Madampe, Chilaw.

Around 110 tons of steel bars worth around Rs.10 million were seized during the raid. The stock did not comply with the steel rod standard of SLS 375. The company was fined Rs. 25,000 by Courts.

Industry experts said that the fine on the sub standard steel rod manufacturer is not adequate as the company could get away and continue to produce inferior steel.

“Low quality steel product manufacturing factories should be banned to maintain industry standards”, they said. Industry experts said that cheap steel manufacturers make huge profits using the country’s resources and remit the money to their countries. Metal scrap such as salmon tins, bicycle rims, bars and parts of ships are being used by certain steel manufacturers to produce billets which do not comply with industry standards. Steel billets should have a standard chemical composition of carbon, manganese, silicon, sulphur and phosphorus.

Industry experts said that metal scrap is being used to manufacture steel rods since the technology to manufacture billets is costly. CAA sources said that the CAA conducts raids and does not determine the fine.

The fine is determined by the Courts. The CAA has conducted raids on several sub standard steel products in the market. PVC pipes and steel bars have the SLS mark. Plain steel for enforcement of concrete is SLS 26.

Investigations have revealed that the Indian steel manufacturer had made huge profits by selling rods which had less width and length. According to SLSI a rod could be either 12 or six metres in length.

CAA sources said that a raid was carried out at a factory in the Gampaha district early this year and the factory was sealed. Steel industrialists said that unfair trading practices of foreign companies who dupe the public should be brought to book with stiff regulations.