ArcelorMittal SA to close Longs Steel business, job cuts expected

ArcelorMittal SA’s Vanderbijlpark plant. File photo.
ArcelorMittal SA’s Vanderbijlpark plant. File photo.
Image: SUPPLIED

Steel producer ArcelorMittal South Africa said on Monday it would proceed with winding down the Longs Steel business, which will be placed into care and maintenance subject to the consultation process.

The steel producer said jobs will be affected and the final number of cuts will depend on agreed alternatives and consultation outcomes. About 3,500 direct and indirect jobs may be affected, the company said.

“The company is at a point where any further delay could affect the sustainability of the company and therefore a decision cannot be pushed back any further," Luxembourg-based ArcelorMittal SA’s local division said in a trading statement.

The company expects a headline loss per share of between R4.06 and R4.41 for the year ended December 31, from a R1.70 loss one year earlier.

Reuters


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