(Bloomberg) -- ArcelorMittal South Africa Ltd. will shut its long steel products business and cut as many as 3,500 jobs, citing a moribund economy.
The unit will be placed in care and maintenance, the company said in a filing on Tuesday. The Newcastle Works, the Vereeniging Works, and rolling facilities, which use Newcastle material as feedstock will be the affected plants, according to the statement.
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
ArcelorMittal's shares plunged as much as 6.6% at 9:39 a.m. in Johannesburg.
“The ArcelorMittal South Africa board and management have reached this point after having exhausted all possible options,” Chief Executive Officer Kobus Verster said in the statement. “We have a duty to ensure that the business remains sustainable in the long term, in the interests of the company and its stakeholders.”
South Africa has been hemorrhaging jobs as state-run logistics and power companies fail to keep up with demand. Companies including Anglo American Plc and Sibanye Stillwater Ltd. are also firing workers. The cuts would be another blow to the electoral prospects of President Cyril Ramaphosa and his ruling African National Congress.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.