It is reported that manufacturers are still reeling from the drop in demand spurred by the global economic meltdown and a slump in commodity prices, and more job losses are expected as producers try to curb costs and restore profit margins. Steel makers in particular are feeling the pinch.

Highveld Steel and Vanadium said that it would embark on a labor restructuring program as orders remained at low levels and steel prices kept going down. It has already drastically reduced output, with the production of cast blocks now 18.3% below output at the end of last year, plate output reduced by 32%, coils down 60.5% and sections output 75.2%.

With no sign when demand will improve and prices stabilize, Highveld will now also resort to job cuts, with as many as 300 on the line. Highveld’s larger peer, ArcelorMittal SA, is also in the doldrums, but while the group last year cut back on contract work it has not yet opted for job cuts.

(Sourced from www.bdfm.co.za)