Engineering News reports ArcelorMittal SA’s (AMSA’s) share price on the JSE fell by 10.4% on Wednesday morning after it said it could possibly cut more than 2,000 jobs.  

In a trading update for the six months ended 30 June, it said a difficult domestic economic environment was negatively impacting on the local steel industry.  This was exacerbated by certain costs, including higher electricity, rail and port tariffs and higher primary raw materials costs, that were not within AMSA’s control.  The company said it had embarked on initiatives to improve efficiencies and cut costs that were within its control, but these had been insufficient, resulting in the need to review staffing levels, besides other possible interventions.  The steel producer has started a Section 189(3) consultation process with labour unions.  The exact number of jobs to be cut would only be confirmed once a formal consultation process was completed.

• Read the original of the report in the above regard at Engineering News
• Read AMSA’s trading update at Moneyweb

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