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ArcelorMittal South Africa could cut more than 2,000 jobs as part of a major restructuring to cut costs. The shares plunged.
The South African steel industry is facing high costs for electricity and raw materials, and has been affected by the weak local economy, the company said in a statement on Wednesday. She expects to record a loss in the first half and said that profits off items would drop to at least 650 million rand.
"Due to the difficult national economic situation, the South African steel industry continues to face significant challenges," the company said. "More important measures have become necessary, including the revision of staffing levels."
Shares fell to 17%, the largest intraday decline of 14 months. The stock was down 10% at 10:19 am in Johannesburg.
The company is majority-owned by ArcelorMittal, one of the largest steel producers in the world, with lower demand and lower steel prices in its key markets.
He announced production declines in Europe last month, as the market was under pressure, with US tariffs diverting shipments to the EU and higher prices for iron ore driving up costs.
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