ArcelorMittal SA, ArcelorSA is the South African subsidiary of global steel giant Lakshmi Mittal Global Portfoliothe, has been seeking its fourth chief executive after its current CEO Wimde Klerk announced his retirement. Despite it having an 80% market share in the local steel market, the AMSA has battled against cheaper imports from China and falling global steel prices.
The AMSA’s share price has fallen 98% since its peak in 1998, when the company was formed after Mittal bought out the ailing state-owned steelmaker Iscor.
At the time of his appointment in September 2016, Wimde Klerk was lauded for having the experience to turn around AMSA failing fortunes, but analysts expressed concern that any incoming chief executive would face the same challenges of De Klerk.
It is reported that Peter Major, an analyst at Cadiz Corporate Solutions, which quoted De Klerk’s departure devastating about the face of South Africa s mining industry, which had not prospect of recovery.
Paulo Trinchero, CEO of the Southern African Institute of Steel Construction, indicated that the market was shrinking, and the costs were going up this week..
“The costs for AMSA in the past five years have gone up drastically.” Trinchero said. Even some of the interventions by government, like reducing imports.
But in a short statement Lakshmi Mittal dismissed concerns that there would be substantial layoffs soon at AMSA.