AusBN – OneSteel has announced that it will cut 200 jobs and 50 contractors from its Whyalla Steelworks over the next six to eight months in order to cut costs.
A statement from the company said the cuts were necessary because labour costs are the biggest proportion of the steelwork’s production costs.
These are just the latest in a line of successive job cuts, including 600 positions lost from the company’s Southern Iron operation south of Coober Pedy.
Steve Hamer, CEO of steel at parent company Arrium, said: “It’s unfortunately due to an oversupply of steel around the world as China floods the market with cheap steel, it’s driving price down, it’s driving margins down and we’ve had to respond as many steel companies have had to around the world.”
He added that Arrium had identified how to save $60 million, but still had to save another $40 million in order to cut its cost-cutting targets.