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Business Report writes that ArcelorMittal SA (Amsa) is standing by the decision to wind down its Saldanha Works, saying it was unavoidable as rocketing input costs threatened the viability of the entire Amsa South African operation.
CE Kobus Verster indicated in the 2019 annual report released on Tuesday that the plant had almost always been a centre of excellence and the ceasing of its operations was by no means a reflection on the performance of management and employees. "However, the reality is that Saldanha Works had lost its cost advantage which resulted in it no longer being competitive in international export markets,” Verster pointed out. The company noted that iron ore costs at Saldanha Works had more than tripled between 2010 and 2019. In terms of electricity usage, the plant’s costs had jumped by 218% in the past decade. “Despite management’s strenuous efforts to seek relief from excessive input costs, no meaningful amelioration was achieved. The decision to put Saldanha Works on care and maintenance could no longer be avoided,” the company pointed out. Around 1,200 positions are set to be lost as a result of the decision to wind down operations last November.
- Read the full original of the report in the above regard by Dineo Faku at Business Report
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