ArcelorMittal’s SA unit is in trouble. It has lost R500m in the six months to end-June, its share price is underperforming the broader stock market and it is threatening to shut down yet another plant.
The company’s operational and stock market woes are partly due to the competitive environment, the economic downturn and cheap Chinese imports. As one of the biggest SA employers, it is tempting to reach for quick fixes such as import tariffs, as suggested by CEO Kobus Verster. Still, it is worth pausing and considering a more nuanced approach. ..
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