ArcelorMittal’s steely resolve
This was after it plunged into a R222million operating loss in the six months to June compared with a R1.22m operating profit a year earlier. The biggest steel-maker in Africa has operations in Vanderbijlpark, Vereeniging, Saldanha and Newcastle.
The plan to restore the group to financial health was welcomed by the market, with ArcelorMittal’s share price up by 5.02percent to close at R2.30 on the JSE yesterday afternoon.
“Such decisions would be taken as a result of the affected business areas being no longer financially viable,” a statement from the group said.
Steel producers globally have this year struggled with lower selling prices due to overcapacity and a slower world economy that has slowed demand, as well as high iron ore prices.
Source: iol.co.za