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Metal producer ArcelorMittal South Africa (AMSA) is planning to trim its headcount by practically half, reported Reuters, citing the Solidarity union.
This determine is reportedly larger than initially anticipated.
The union’s assertion highlighted that the job cuts would now additionally affect Vanderbijlpark, AMSA’s flagship operation accountable for producing flat metal.
The Solidarity union revealed that AMSA had knowledgeable its staff concerning the impending “mass retrenchments involving greater than 4,000 jobs”.
The steelmaker, which produces roughly 2.4 million tonnes every year (mtpa) of metal, had beforehand introduced its intention to close down its lengthy metal crops at Newcastle and Vereeniging, affecting 3,500 jobs.
Discussions with the federal government haven’t yielded another resolution to the deliberate closures.
AMSA expressed limitations in discussing the state of affairs publicly, citing “complexities of the issues underneath dialogue and a cautionary announcement we issued just lately”.
It confirmed that “sure processes are nonetheless ongoing”.
The corporate has been struggling financially, registering losses since 2023. It reported a half-year headline lack of R1bn ($56m), attributed to persistently low gross sales volumes and depressed costs.
AMSA has twice postponed the closure of its lengthy metal operations resulting from varied challenges together with weak native demand, excessive electrical energy tariffs, poor freight logistics, competitors from native scrap recycling mills and metal imports from China.
The union has criticised the federal government for its gradual response find options.
AMSA had requested authorities intervention within the type of decreased scrap export duties, which it claims give recyclers an unfair benefit, and the imposition of tariffs on metal imports.
The corporate additionally sought extra beneficial electrical energy and freight prices from state-owned utilities.
“ArcelorMittal South Africa plans to shed 4,000 jobs” was initially created and printed by Mining Know-how, a GlobalData owned model.
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