Why BSI Steel may close KwaZulu-Natal branch
The group may restructure to centralise distribution from Gauteng office amid sector ructions
BSI Steel, an AltX-listed processor and distributor of steel products into sub-Saharan Africa, is reviewing the viability of servicing the market in KwaZulu-Natal through its Pietermaritzburg warehouse and offices. The group, which is feeling the ructions in SA’s broader steel industry, said there was a possibility of relocating the firm’s administration function to the BSI Kliprivier office in Gauteng. But it also said "this restructure is a decisive and progressive move to ensure that BSI remains a competitive distributor in the market". The tone of this statement makes any possible move sound like a done deal. "It is expected that this restructure will result in an efficient, highly cost-effective distribution platform, geared to meet service and price expectations going forward," the company said on Wednesday. BSI said due to decreasing margins over the years, it had been "forced to utilise the lowest cost platform to meet market prices. As a consequence, the company has been su...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.