(Trinidad Guardian) – The jubilation that hundreds of steel workers experienced on Thursday when the Industrial Court granted them victory over ArcelorMittal turned to grief on Friday, after the company terminated the employment of its 700-plus work force.
The company made the announcement during a meeting with the Steel Workers Union (SWUTT). It said that after consultation with its corporate head in Luxembourg it was forced to take the decision to shut down business at its Point Lisas plant and liquidate its assets. The union said the company revealed that it was $1.3 billion in debt.
In a press statement, ArcelorMittal said that despite efforts to avoid the closure of the iron and steel facility, local and international challenges had put it under severe financial distress since the second half of 2015.
It said proposed increases in gas and electricity rates at a time of falling commodity prices had rendered production costs uncompetitive, adding that proposed increases to port rental fees, announced property taxes and business levies had further contributed to the “unsustainability” of the business.
“As an export-led business, ArcelorMittal Point Lisas has also been severely impacted by the drop in international steel prices and global overcapacity in steel production. Imports into Central America and the Caribbean—ArcelorMittal Point Lisas’ core markets for its steel products—from outside the region, principally China and Turkey, rose by almost a quarter (23 per cent) in 2015, compared with 2014.
