Africa's largest steelmaker has been battling low demand and high input costs
Arcelor Mittal SA, which has already cut 1,000 jobs, plans to shed hundreds more as it battles low steel demand and rising costs.
This adds to the country’s rising unemployment crisis. Only 42% of SA’s adults are employed, according to the Centre for Development and Enterprise’s latest report on unemployment. Speaking after the release of results for the year ended December 31, Verster said the company had decided not to close the Newcastle plant. “When we looked at the closure of Newcastle, we came to the conclusion that the impact of that would be substantial on the domestic market. Financially, you could say — shut it down. But there is still a cost problem,” he said.On January 24, the company, after its annual revenue fell 9% to R41.
In the year to end-December, ArcelorMittal SA’s earnings before interest, taxes, depreciation, and amortisation decreased from a profit of R3.6bn in 2018 to a loss of R632m in 2019.
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