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ARCELORMITTAL SOUTH AFRICA LIMITED - ACL - Restructuring as a result of operational requirements: Commences consultation in terms of section 189(3)

Release Date: 18/06/2020 15:12
Code(s): ACL     PDF:  
 
Wrap Text
ACL - Restructuring as a result of operational requirements: Commences consultation in terms of  section 189(3)

ArcelorMittal South Africa Limited
(Incorporated in the Republic of South Africa)
(Registration Number 1989/002164/06)
Share Code: ACL ISIN: ZAE000134961
(“ArcelorMittal South Africa” or the “Company”)

RESTRUCTURING AS A RESULT OF OPERATIONAL REQUIREMENTS: ARCELORMITTAL SOUTH AFRICA
COMMENCES CONSULTATION PROCESS IN TERMS OF SECTION 189(3) OF THE LABOUR RELATIONS ACT

Shareholders have previously been advised that due to the difficult domestic economic environment, the South
African steel industry continues to face significant challenges. On 3 April 2020, the Company also explained the
impact of Covid-19 on the Company and the critical steps taken since 2019 to ensure the sustainability of the
Company.

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.

Shareholders are accordingly advised that the Company will be commencing with a consultation process in terms
of Section 189(3) of the Labour Relations Act 66 of 1995. A large-scale restructuring is contemplated, and the
number of jobs impacted will depend on the alternatives identified and agreed to mitigate the impact. The final
outcome and number of positions affected is subject to a formal consultation process.

The Company will continue to engage with organised labour and employees to consider alternatives to minimise
the impact.

Vanderbijlpark
18 June 2020
For further information please contact:

Company Secretary
FluidRock Co Sec (Pty) Ltd
Tel: (016) 889 4077

Tami Didiza: Manager: Corporate Communications
Tel: (016) 889 2549

Sponsor to ArcelorMittal South Africa Limited
Absa Bank Limited (acting through its Corporate and Investment Banking division)

Date: 18-06-2020 03:12:00
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