Sunday Independent reports that ArcelorMittal SA (Amsa) has trained its eyes on its Newcastle operations in KwaZulu-Natal to improve the group’s structural cost position and service offering.  

The steelmaker last week confirmed that the second phase of its strategic asset footprint review would focus on Newcastle, where it employs nearly 2,000 workers.  The review of the operation comes just days after Amsa said it would wind down its Saldanha plant in the Western Cape in a process that could see 900 jobs culled.  Amsa chief executive Kobus Verster painted a bleak picture because the global steel industry was experiencing its most challenging time since the global financial crisis.  “Locally, the situation is exacerbated by continued weak economic growth, especially in steel and steel-consuming sectors, with apparent steel consumption at a 10-year low,” he indicated.  Willie Venter, deputy general secretary for the metal and engineering industry at Solidarity, said the union was aware that company was facing major challenges in Saldanha with high input costs, a declining export market and the government’s economic policies.  “But such a drastic step gives rise to major concerns,” he said, adding that the union was concerned about the possibility of further cuts at Newcastle.  “We don’t know what the future holds for Newcastle after the strategic review,” he indicated.

• Read the full original of the report in the above regard by Tawanda Karombo on page 18 of The Sunday Independent of 17 November 2019

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