SEDIBENG. – The ArcelorMittal, South Africa has said that its board and management took several steps last year to ensure the sustainability of the company, the safety and well being of its employees, customers, suppliers and other stakeholders in these difficult times.
ArcelorMittal South Africa’s Vanderbijlpark Works shut down its rolling operations the day before the lockdown began and both blast furnaces were prepared and shut down in the days that followed. One coke battery remains fully operational to provide the necessary energy to hot idle the other batteries.
The company said that all its South African offices and operations across the country have been closed during the lockdown period and employees are staying home, except for essential operational staff who are required for care and maintenance to avoid damage to plant and equipment, as permitted in terms of the regulations.
“Currently, more than 95% of ArcelorMittal South Africa’s customers are closed for business in accordance with the nationwide lockdown,” said Kobus Verster, Chief Executive Officer of ArcelorMittal South Africa.
Verster said that once the lockdown has been lifted, ArcelorMittal South Africa plants, including the Vanderbijlpark Works, will restart operations in a logical sequence to enable the business to provide product according to steel demand. The rolling operations will start first to produce finished products for customers, and soon after, the iron facilities will be prepared to start production of iron and steel for the operation.
“While we understand and support the need for the nationwide lockdown, this is likely to result in further pressures on the business, over and above the effects of an already struggling economy that have severely impacted the South African steel sector,” explained Verster.
The anticipated impact of COVID-19 on the economy has led the company to consider even greater measures to ensure its sustainability. Several temporary interventions have been implemented, including curtailment of expenditure on non-critical goods and services, short time, and salary reductions for all employees with effect from April 2020 and likely to last for three months. The company is also accessing measures introduced by government to assist companies and employees, such as the revised UIF benefits.
