ArcelorMittal to lay off 3,500 people
The South African unit of ArcelorMittal, the world’s second largest steel producer, announced that it will close its long steel unit due to weak demand and chronic infrastructure problems and will therefore lay off 3,500 people.
The company’s long steel unit produces fencing material, rails and iron rods used in the construction, mining and manufacturing sectors. ArcelorMittal also produces castings, flat steel products and tubular products.
ArcelorMittal’s South African unit announced that steel consumption in South Africa, which has Africa’s most developed economy, has fallen 20 percent over the past seven years due to limited infrastructure spending and project delays.
ArcelorMittal’s South Africa unit announced that chronic rail logistics problems and the country’s growing electricity crisis also increased costs.
“In these circumstances, the board and management of ArcelorMittal South Africa have no choice but to initiate the process of closing the company’s long steel unit, which may be placed under maintenance and repair for the time being,” the statement said. .
ArcelorMittal’s South African unit announced that the 3,500 people being laid off will include full-time staff and contractors. (REUTERS)
Source: Sozcu
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