At ArcelorMittal South Africa, more than 2000 jobs are in danger of being lost as part of a major reorganization of the South African subsidiary of steel producer ArcelorMittal. The intervention is related to the difficult market conditions in the South African steel sector.
ArcelorMittal South Africa currently has around 9,000 employees. The company will take extra initiatives to save costs and work more efficiently. In addition to the weakness in the steel market in South Africa, the company also faces high costs for, for example, electricity, transport and raw materials.
ArcelorMittal South Africa further warned of a sharp decline in profitability in the first half of this year. At the Johannesburg stock exchange, the ArcelorMittal South Africa share fell sharply on Wednesday after the news.