The global escalation of Covid-19 and the measures introduced by governments worldwide to contain the virus were negatively impacting economic activities and industrial supply chains in many parts of the world.
World’s largest steelmaker ArcelorMittal, which operates in 60 countries with a total capacity of 90 million tonne per annum, on Tuesday announced that it was cutting down on production. Temporary idling of steel-making is being effected on a country-by-country basis in alignment with regional demands as well as government requirements.
This will not necessarily happen uniformly at assets across the globe given the escalation of the virus is at different points in different regions. While Europe is currently the epicentre, according to official WHO data cases in the NAFTA (North American Free Trade Agreement) region have now exceeded those in China, with cases also increasing in Africa, India, South America and the CIS (Commonwealth of Independent States),” it said in a statement.
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In India, along with its joint venture partner Nippon Steel, ArcelorMittal has pruned its production at the Hazira facility in Gujarat.
The global escalation of Covid-19 and the measures introduced by governments worldwide to contain the virus were negatively impacting economic activities and industrial supply chains in many parts of the world. Consequently, the company was either seeing or expect to see a significant decline in industrial activity in many if not all of the geographic markets in which it operates.
In order to mitigate the impact of the lower level of production, we are implementing significant measures to preserve cash and reduce costs in-line with reduced production levels. This includes accessing measures introduced by governments to support companies throughout these unprecedented times,” it said.
Stating that during the current market volatility and uncertainty it was tough for every country, individual and company, ArcelorMittal said it would continue to prioritise strengthening its balance sheet to provide a strong financial foundation in all market conditions.
“Net debt is at a record low, we have a very manageable debt maturity profile having used available cash to prepay debt in recent years and also benefit from a significant liquidity position,” it said.