Mittal SA to cut 800 jobs
01/06/2006 10:24 A
Vanderbijlpark - Africa's biggest steel maker, Mittal Steel South Africa Ltd, plans to cut 800 jobs this month to save R160m per year, the company's chief executive said on Thursday.
CEO Davinder Chugh told a presentation at the company's Vanderbijlpark plant near Johannesburg the job cuts would cost R159m.
Mittal Steel SA is majority owned by Mittal Steel, the world's biggest steel group.
Mittal would cut the jobs by the end of June, Chugh said.
Shares in Mittal's South African business dropped 1.43% to R62.10 10:14, lagging the Johannesburg top-40 index of blue-chip stocks, which fell 0.86%.
Mittal South Africa has struggled with higher costs and falling global steel prices. It posted a 57% drop in first-quarter headline earnings earlier this month.
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