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+ ArcelorMittal |
ArcelorMittal is the world's largest metallurgical company for 2020.
Aktivs
The company's assets include:
History
2023: 3,500 staff laid off due to crisis
On October 28, 2023, ArcelorMittal, the second largest metallurgical company in the world, announced its intention to close the division in the Republic of South Africa (South Africa). Minimization of operations will result in the reduction of approximately 3,500 jobs.
ArcelorMittal says the decision is due to the acute crisis the company is in. Weak demand in Europe amid macroeconomic difficulties is hurting profits, in addition, ArcelorMittal risks losing its steel mills and mines in Kazakhstan to an accident that killed 46 people. High transportation and logistics costs, as well as rising energy prices, have an additional negative impact on the business.
Given all these circumstances, the management of ArcelorMittal decided to curtail operations at enterprises in Ferinihing (Gauteng province) and Newcastle (KwaZulu-Natal province). The company says it has tried to save production by aggressively reducing costs and various efficiency initiatives, but these measures have not yielded the desired result. ArcelorMittal CEO Kobus Verster said the board's decision to wind down the long-products business in South Africa came after "all possible options" for resolving the problems were exhausted.
The reduction of thousands of jobs at these enterprises can negate the growth of employment of the local population after the COVID-19 pandemic. ArcelorMittal emphasizes that the decision is intended to ensure the sustainability of the operating activities of the company and other stakeholders in the long term. At the same time, ArcelorMittal recognizes that the closure of enterprises can have a negative impact on the regional economy.[1]
2022
Europe's Steel Mill Cuts and Shutdowns Due to Rising Electricity Prices
Since August 2022, European steel plants have been stopping production due to rising electricity prices amid sanctions imposed on Russia over the conflict in Ukraine.
Statement on the abandonment of Russian goods for factories in Europe
On March 22, 2022, ArcelorMittal SA, Europe's largest steel producer, made a statement about excluding Russian goods from its supply chain amid EU sanctions and Russia's sting operation in Ukraine.
The company said it had previously supplied about a fifth of coal from Russia for its European plants. The company also bought iron ore from Metalloinvest billionaire Alisher Usmanov, who is under sanctions.
"We are now independent," said Geert Van Poelwurd, chief executive officer. "In the third quarter, we will need to buy a little more non-Russian products. But that's not a big problem.' Global raw material flows will change, he said. Within months, Russia will redirect coal exports from Europe to, China which, in turn, will buy less fuel from. Australia
"The Russians have always been very opportunistic," Van Poelwurd said. "There will be a rebalancing in the world."
2020: U.S. Business Sale Agreement to Cleveland-Cliffs
In September 2020, ArcelorMittal agreed to sell its business in the United States to the American company Cleveland-Cliffs.
The value of the assets is approximately $1.4 billion. In particular, Cleveland-Cliffs must pay about $873 million in its own shares and 505 million in money. The sale is expected to be completed before the end of the year.
Notes
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