It also said it would review its unprofitable main Vanderbijlpark works and associated group corporate services, with a view to optimising structures and costs. This would be concluded by the end of October after consultations with all employees and unions, to assess alternatives to potential job losses.

 

SA's largest steel company said consultations would be in accordance with section 189 of the Labour Relations Act, and all employees and trade unions at Vereeniging would soon receive formal notification of this. "The possible closure will affect approximately 400 direct employees and contract service employees"" the group said.

 

"It is envisaged that the operating mills of Vereeniging will be merged with the operations of the Newcastle Works to create one long steel business. We anticipate that this decision will help optimise the already high and unsustainable fixed costs of the long steel business."

 

The negotiations include mothballing some of the company's operations and placing others under care and maintenance. ArcelorMittal said it had been "engaging extensively" with government over protection in the form of tariffs and antidumping duties on rampant Chinese steel imports as well as domestically produced steel products being designated for inclusion in state infrastructure projects.

 

"We acknowledge and appreciate the steps taken by the government with regards to the initial approvals of import tariffs for two of our products" the group said. "However, these will only assist in the medium to long term and trading conditions continue to worsen... Notwithstanding, the government is still actively working with us to implement additional tariff and duty applications across our steel products."

Source : bizcommunity.com