On a statement on Thursday the giant steelmaker said while the full extent of the impact of the Covid-19 pandemic still remains uncertain as the economy slowly reopens within government’s risk-adjusted approach to the easing of lockdown restrictions, the various lockdown regulations have, to date, had a material negative impact on the business.
Further, the Company anticipates that it will take some time for crude steel production levels to return to historical levels or planned levels of 2020. Therefore, a significant part of the Company’s available production capacity may remain unutilised for an extended period.
“Consequently, the cost-saving initiatives previously implemented will not be sufficient and the unexpected impact of Covid-19 has led the Company to consider further measures to ensure that its cost base is adjusted in line with lower anticipated demand.”
“A large-scale restructuring is contemplated, and the number of jobs impacted will depend on the alternatives identified and agreed to mitigate the impact,” it said.
Sasol has also announced that it would begin talks to cut jobs as part of its cost saving strategy.
