Manufacturing News South Africa

Saldanha plant will be negatively affected

Steelmaker ArcelorMittal South Africa (ACL) said its Saldanha plant will be negatively affected if the illegal strike continues for more than a week and a half as it has stockpiles to continue its operation only for a limited period.

The other plants have enough stockpiles and alternatives should the industrial action continue for an extended period‚ it said.

Sishen Iron Ore Company (SIOC) which supplies iron ore to ArcelorMittal SA issued a force majeure notice on Friday informing ArcelorMittal South Africa that its supply obligations will be suspended due to unprotected industrial action at its Sishen mine which affects production and operations.

The duration of the force majeure is unknown‚ but SIOC anticipates that it might endure for approximately two weeks.

ArcelorMittal said further updates would be provided on potential operational disruptions which might arise as a result of the current transport strike. "The nature of these potential operational disruptions will be disclosed once these have been firmed up or become clearer."

Source: I-Net Bridge

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