ArcelorMittal says it is facing a myriad of challenges

ArcelorMittal Chief Executive Officer Kobus Vester says apart from low demand, the business faces a number of challenges which include electricity cost pressures, railway issues, tax, competition from cheap imports and employee compensation.

This is as 3 500 workers stand to lose their jobs after ArcelorMittal announced plans to shut down its long steel production in Newcastle and Vanderbijlpark.

Addressing the media after a meeting with Employment and Labour Minister, Nomakhosazana Meth in Vanderbijlpark, Vester says ArcelorMittal understands the dire consequences of its decision and is willing to work with government to find an interim solution.

“We continue to advocate and request a level playing field of an enabling environment for the manufacturing of steel.  So, those cost issues that we well publicised, of energy and rail, those need to be addressed.  The unfairness in terms of tax PPS system and the export system needs to be addressed. There are complicated issues but there’s a lot of people willing and able to work at it hard, and sometimes we can find interim solutions.”

VIDEO | Government says its engagement with ArcelorMittal was positive.