ACL has been through the mill but more squeezes lie ahead
ArcelorMittal SA is hoarding cash, taking a hard look at its cost base, and may close some operations
ArcelorMittal SA (ACL) (https://www.sharenet.co.za/v3/quickshare.php?scode=ACL) will soon be reviewing its sites, which may lead to the closure of some operations, indicating the magnitude of the struggling steelmaker’s problems.
The company’s financial performance has gone backwards since it posted its first full-year profit in nearly 10 years in 2018. Its operational environment has deteriorated and there are no signs of immediate recovery, hence the desperate measures announced this week.
Factors that have forced ACL into a corner include falling domestic steel consumption, rising raw material costs, and runaway administrative costs such as electricity, rail and ports. ..