NEWS ANALYSIS: Amsa’s brewing meltdown reflects weakness in broader economy
Poor rail logistics and unreliable power supply amid a high inflationary environment make it tough for the steelmaker to get its rhythm right
25 July 2023 - 05:00
A cocktail of high inflation, rising interest rates, unprecedented load-shedding in the last six months, a weaker pricing environment and slower demand from steel-consuming sectors have caused something of a meltdown at steel giant ArcelorMittal SA (Amsa).
This has shone a spotlight on the steelmaking operating environment and Amsa management’s ability to implement its ‘RRR’ strategy to reposition it as the champion of SA’s manufacturing backbone, restructure it to ensure international cost competitiveness and revitalise its balance sheet to improve sustainability and enhance flexibility and agility...
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