Featured

Steel producer ArcelorMittal South Africa (Amsa) has announced plans to retrench more than 50 employees as low demand, rising costs, a strong rand and South Africa’s sluggish economy necessitate further cost cutting measures. The company has said it would consult employees on the retrenchments, but labour unions have already stated their intention to oppose the job cuts.

In a statement, ArcelorMittal said it would explore several initiatives, including cost saving measures, assessing the profitability of various product lines and restructuring in the next six months. “All options are being explored and the company has no option but to also review its staffing levels,” the company said. The steel maker is the latest company to consider job cuts following Sibanye Gold and Anglogold Ashanti, which could affect a total of around 15 900 people.

‘We plan to hold serious talks with Amsa to discuss alternatives so that retrenchments would be considered as the last resort. We will do everything we can to prevent possible retrenchments,” says Marius Croucamp, the union’s Deputy General Secretary.

“I can promise you and workers we are going to do everything our power not to run away from engagement but to fight and oppose any form of job losses at Amsa,” National Union of Metal Workers (Numsa) General Secretary Irvin Jim told the media.

Wiim de Klerk ArcelorMittalArcelorMittal’s reported operating and headline losses increased by R714 million and R1.161 billion respectively for the first half of this year, as well as a 3.8% reduction in domestic steel consumption. The government’s planned tariffs on imported steel, while aimed at protecting the local industry, would not solve the company’s problems, CEO Wim de Klerk says.

“While we acknowledge and appreciate the steps already taken by government to protect the local steel industry, such as import duties, safeguards and the localisation of steel for state infrastructure projects, these will only assist in the medium- to long-term and, in the meantime, we must focus on the costs that are within our control in the face of this extremely challenging trading environment. Unfortunately, interventions implemented by the company to improve business performance have not yielded the required results and Amsa continues to face sustainability challenges,” he adds.

Other measures being evaluated by the company include procurement savings, commercial initiatives to enhance sales volumes, and short-term actions such as further productivity improvements. ArcelorMittal also stated that it is considering selling non-core assets and assessing its production footprint. In addition, the company has approached the National Energy Regulator of South Africa directly with a request for discounted electricity tariffs in order to reduce operating costs.

Image credit: http://annualreview2016.arcelormittal.com/action-2020/segment-review/acis

Magazines

African Fusion

AfricanFusionAfrican Fusion, the official publication of the Southern African Institute of Welding (SAIW), aims to provide up-to-date insight into welding technology and the welding industry.

Capital Equipment News

Capital Equipment News is dedicated to the application of equipment and modes of transport that are used in the mining, construction, quarrying, and transport industries.

Construction World

ConstructionWorldConstruction World was first published in 1982 and has grown to become a leader in its field, offering a unique mix of editorial coverage to satisfy the diverse needs of its readers.

Electricity + Control

ElectricityandControlE + C publishes innovative, technical articles that provide solutions to engineering challenges in measurement, automation, control, and energy management.

Lighting in Design

LightingandDesignLighting in Design is a glossy, upmarket publication aimed at lighting professionals. It is the only B2B magazine in SA that is dedicated solely to the subject of lighting.

MechChem Africa

MechChemJanuary2017cover MechChem Africa supports African engineering and technical managers across the full spectrum of chemical and mechanical disciplines.

Modern Mining

ModernMiningEstablished in 2005, Modern Mining is one of SA's leading monthly mining magazines, noted for the quality and accuracy of its writing and the breadth of its coverage.

Modern Quarrying

ModernQuarryingModern Quarrying is firmly entrenched as a leading industry-specific magazine. It focuses on promoting the science and practice of quarrying and processing in southern Africa.

Sparks Electrical News

SparksElectricalNewsReadable and informative, Sparks Electrical News is the newspaper for those involved in installing and maintaining electrical supplies and equipment.

 
Full Name*
Invalid Input

Company Name*
Invalid Input

Your Email*
Invalid Input

Phone*
Invalid Input

Postal Address 1*
Invalid Input

Postal Address 2*
Invalid Input

Postal Code*
Invalid Input

Street Address 1
Invalid Input

Street Address 2
Invalid Input

Postal Code
Invalid Input

Town / City*
Invalid Input

Country*
Invalid Input

Magazine

Invalid Input

Invalid Input