• Large scale job losses being considered by ArcelorMittal South Africa

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    • Post Author

      Patrick Lavery

      Combustion Industry News Editor

ArcelorMittal South Africa is considering reducing its workforce by 2000 jobs as it looks to restructure after making a loss in the last financial year (to the end of March), the Financial Times has reported. Higher electricity, transport and raw material costs, as well as cheaper steel imports have been the primary reasons for the reduction in the company’s earnings, which saw a fall in the company’s share price by 8%. (ArcelorMittal South Africa received a bailout from the government in 2015 after being in difficulties, a sign of the company’s strategic importance to the country.) The South African economy as a whole has recently suffered its biggest slump in a decade, with electricity prices, as well as rolling blackouts, contributing to the country’s difficulties. A consultation period with staff will be required before any job losses are made.