The World’s Second Largest Steel Producer Laying Off Thousands of Workers

The World’s Second Largest Steel Producer Laying Off Thousands of Workers

ArcelorMittal (registered in Luxembourg – EADaily), the second largest steel company in the world, controlling about 4% of the global steel market, has announced the layoff of 3,500 people involved in the production of long products. The Turkish edition of Sözcü reports about what is happening in the industry.

This is about ArcelorMittal’s division in South Africa. The company explained this decision by very weak demand for products and persistent infrastructural problems. The division is engaged in the production of materials for fences, rails, rods used in construction and mining, various industries.

ArcelorMittal now plans to focus on unitized castings, flat steel and tubes. The high costs of long products are already too high, experts here point to the increased tariffs of railway supplies and electricity.

“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 products facility, which may first be placed on maintenance and repair,” the company said in an official release.

The 3,500 people who will be out of work are not only ArcelorMittal’s full-time employees, but also contractors involved in production.

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