ArcelorMittal South Africa Contemplating Steel Production Wind-Down; Job Cuts
November 28 2023 - 7:57AM
Dow Jones News
By Helena Smolak
ArcelorMittal in South Africa said it is contemplating winding
down operations at its Newcastle and Vereeniging long-steel
production sites, and a significant restructuring which could
affect 3,500 jobs.
The South African subsidiary of the Luxembourg-based steelmaker
said it had no option but to start contemplating the wind-down
after other cost-saving initiatives couldn't outweigh weak demand
and other structural problems affecting the market.
ArcelorMittal South Africa said the wind down would exclude the
Newcastle site coke batteries.
"In the circumstances, the ArcelorMittal South Africa board and
management have had no option but to embark on a process that
contemplates the wind down of the company's longs business, which
for now may be placed in care and maintenance," the company said in
a statement Tuesday.
In addition, the company said that it is considering a
significant restructuring which could affect 3,500 jobs.
"The remaining business, after the wind down, will be on a more
sustainable financial footing and able to invest the appropriate
capital in produce development and available growth prospects,"
ArcelorMittal South Africa CEO Kobus Verster said.
The news sent shares in South Africa tumbling down more than 7%
in early trading Tuesday, their lowest level since January
2021.
Write to Helena Smolak at helena.smolak@wsj.com
(END) Dow Jones Newswires
November 28, 2023 07:42 ET (12:42 GMT)
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