At a time when unemployment is rife in South Africa, a massive company is winding down operations. ArcelorMittal SA has let 900 employees go in the wake of 'severe financial losses'.
ArcelorMittal South Africa has been forced to scale down steel operations at Saldanha in light of financial difficulties.
Fin24 reports that 900 employees have been let go as part of a strategic operational review. The Saldanha plant has been found lacking when it comes to competitive advantage in the export market.
Losses at the plant are expected to continue into the foreseeable future, according to the company. Production facilities will slowly be shut down.
In a statement released following the ordeal, the embattled company commented that:
“This difficult decision was taken in the context of constructive ongoing engagements with key stakeholders, including government and organised labour, to find alternative solutions to the dire situation in the South African steel industry."
Briefly.co.za gathered that Newcastle operations are also at risk, with the company focusing on a concentrated operating footprint.
Consultations with the CCMA have concluded, with the 'outcomes' from the process set to be implemented shortly.
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