Warning parts manufacturers to stop production from June / shortage of sheets with the new allocation system

Khodrocar - production barriers in the automotive industry are increasing day by day, while we are still in the first month of the year of production leaps, supports, and disruptions. The parts industry as a supply chain and the lifeblood of the automotive industry these days is struggling with a shortage of raw materials. 

Reducing the quota of steel sheet manufacturers, whose whispers have been heard since the last months of last year, has become a new concern for industry activists these days with the depletion of parts manufacturers' reserves. While the parts manufacturers are accused of selling the quota of the allocation sheet, some of these small parts manufacturers, whose number reaches about 250, make their required sheets from Sapco and Sazeh Gostar companies at the current price, and Selling sheets at this price will definitely not be economically viable for them.

This situation is while a large number of parts manufacturers are not able to buy sheets from the commodity exchange and are forced to turn to the free market to meet their needs, which certainly leads to an increase in their cost price.

Mohammad Reza Najafi Manesh, President of the Association of Homogeneous, Powertrain and Parts Manufacturing Industries, said in an interview with Khodrocar: "We have expressed our protest to the Deputy Minister of Industrial Affairs and asked them to name the offending parts manufacturers who sold the quota of sheets." They have tried to announce themselves, but the officials have so far refused to do so.

He adds: "No component maker is currently satisfied with selling the sheet under its control in the open market and there is no reason for this."

Najafi Manesh emphasizes that the amount of sheets provided for the parts manufacturers will not meet their needs: "We have stated our protest in this regard because the work is currently being done with difficulty."

The head of the specialized association of homogeneous industries, propulsion and parts manufacturing, regarding the status of allocating the sheets required by small parts manufacturers by Sazeh Gostar and Sapco, also states: Previously, small parts manufacturers received their quotas from these two companies. But now the quota of Sazeh Gostar and Sapco is also running out and it is possible to allocate the quota only until June.

He reminds that the production situation of parts manufacturers will face complicated conditions from June, while our negotiations to reform the quota of the sheet allocated to parts manufacturers will continue.

Earlier, Reza Shahrestani, a member of the board of directors of the Steel Producers Association, had told the reporter that there had been reports of some parts manufacturers selling quota of allotment sheets to the parts industry, so we are trying to reduce the allotment quota.

 In the past, parts manufacturers used to rely on the matching system to purchase, which has been disconnected since 1998, and the Ministry of Silence, under this pretext, reviewed the manufacturers' quotas in the optimizer system, and the figures are unrealistic. And introduced less as a need of parts manufacturers so that the quota of 100 tons was allocated to one of the parts manufacturers instead of 500 tons.