In August this year, the company announced that it would initiate a Section 189 (Dismissals based on operational requirements) process with regard to the potential closure of the Vaal Meltshop and the Forge at its Vereeniging Works. According to a statement issued by the steel giant the consultation process has yielded an alternative solution which will allow the Forge to continue operating, albeit at a reduced capacity.

Its board has taken the decision to place the Meltshop under care and maintenance. The Meltshop will cease production during quarter four 2015 and, subject to finalisation of the process, it is estimated that this will have an impact on 283 employees. Mittal’s management reportedly continues to actively work with unions and Vereeniging employees to find ways to minimise job losses which is most welcome news indeed.

It was also announced in August that the company would undertake a review of the Vanderbijlpark Works and its corporate services departments to optimise structures and minimise costs. This review, which used the services of independent experts, has now concluded.

The outcome of the footprint review conducted at Vanderbijlpark Works revealed that the assets need to run at their optimal capacity.

To ensure that Vanderbijlpark Works achieves positive operating and financial results, a number of significant operational, productivity and cost efficiency improvements will be implemented over the next two years.

ArcelorMittal South Africa has continued its constructive engagement with the South African Government on measures which would ensure the sustainability of the South African steel industry in the long term and is appreciative of the progress that has been made in this regard.

In the end the processes that have been entered into have borne some positive results indeed. Let us hope that the total shut down of this steel giant which puts food on the table of many families in this region is totally avoided.

Lerato…

Lerato.Serero@mooivaalmedia.com