ArcelorMittal, South Africa, struck by the impact of Covid-19, which caused a sharp drop in steel demand, says it will initiate “massive restructuring” that will affect an unknown number of jobs.
ArcelorMittal South Africa is part of the global steel producer and mining group ArcelorMittal, which employs approximately 190,000 people worldwide.
The manufacturer is the latest local company to announce restructuring plans as operations shed tension from the economic shock caused by the coronavirus pandemic. The manufacturer also announced that it will begin talks on job cuts as part of its savings strategy.
ArcelorMittal SA already announced in January it would cut jobs by 1,000 people to cut costs, but said Thursday that “the previously implemented cost-saving initiatives will not be enough.”
“Large-scale restructuring is envisioned and the number of jobs affected will depend on identified and agreed mitigation alternatives,” it said.
It is anticipated that it will take some time for crude steel production levels to return to historical levels or projected 2020 levels.
The company, which is Africa’s largest steel producer, said last month that it will return to full production if demand picks up.
In February, ArcelorMittal received the green light from the Competition Tribunal to acquire the Highveld Structural Mill steel and rail business in a RUB 300 million deal.