Maputo, 20 Aug (AIM) – The South African engineering and manufacturing company for metal structures, Duys Engineering Group, has announced the suspension of potshell repair and superstructure recovery operations in Mozambique because “the company’s main client, the Mozal aluminium smelter, has canceled all services related to these activities.”
The pot shell is a steel container forming the outside of the crucible, consisting essentially of a steel plate shell.
The company’s decision follows the dispute between the government and Mozal concerning the price at which Mozal buys its electricity. At Mozal, aluminium ingots are produced from alumina imported from Australia. The main local input is electricity, which is generated at the Cahora Bassa dam on the Zambezi, in the central province of Tete.
In a statement, the company says that the measure directly impacts the contracts of the employees involved, which will be terminated in accordance with current labor laws, guaranteeing all employee rights.
According to the note, the company’s Board of Directors is acting with “speed, correctness, and transparency”, ensuring compliance with the law and fair payment to the affected employees.
“We express deep solidarity and gratitude for the professionalism of the employees and we reiterate commitment to maintaining the company’s remaining business lines while pursuing new market opportunities”, reads the document.
“This setback has placed Duys in an extremely difficult position”, adds the note.
Duys Engineering Group created its subsidiary in Mozambique in 1999, at Beluluane Industrial Park, in the southern Municipality of Matola Rio. The industrial park is centred on the Mozal smelter.
The company has distinguished itself through engineering, manufacturing, assembly and maintenance of heavy metal structures. Its main services include the construction of metal bridges, towers, industrial tanks, support structures for large industrial plants, as well as components for potshells used in aluminum production.
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