Manufacturing News

Steel industry reports job cuts

Arrium, the global resources and steel company formerly known as OneSteel, posted a 75 per cent slump in net profit to $58 million.

Though Arrium has outshone rival BlueScope Steel and made steelmaking profitable again it continues to face a difficult year of weak demand and falling iron ore prices.

Arrium chief executive Geoff Plummer would not commit to the future of its steel mills or say whether or not jobs would be cut, reports The Australain.

"Businesses such as ours have to be cutting costs continually. We will continue to look for these opportunities, it's the only way we can maintain long term jobs,” Plummer said.

He went to say that “the improved steel result is partly due to the company cutting 815 full-time jobs during the year, reducing labour costs by $85 million.”

"There will be changes to jobs across the business, in some instances some jobs will go, in other instances some jobs will be added as we move product and facilities around … the jobs in Whyalla are no less certain or no more certain than most other parts of the company," he added.

Arrium's chief financial officer Robert Bakewell also revealed that the company would not pay any Minerals Resource Rent Tax this year or in the future from its existing iron ore operations in South Australia.

“It is expected that in near team the external environment for the steel and recycling businesses will continue to be dominated by generally weak domestic demand and volatility in the exchange rate and international prices,” Plummer added.

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