Gerdau and ArcelorMittal Mexico, two of Latin America’s main steel producers, laid off a combined 800 workers this week according to media reports.
ArcelorMittal Mexico reportedly reduced the workforce at its Lázaro Cárdenas plant—the company’s main operation in the country—by 600 workers as a result of the global crisis that hit the steel industry. The dismissal follows a recent agreement ArcelorMittal had reached with a local union regarding the employees’ work contract.
Additionally, Gerdau has temporarily laid off 200 workers at its Pindamonhangaba long steel mill, in the city of same name located in the state of Sao Paulo, Brazil.
Gerdau said the temporary layoff has the aim to balance production with the weak demand it has seen in the domestic steel market. The 200 workers were laid off following the return of other 70 employees.
To some extent, the workforce reductions are linked to the weaker prospects Latin American mills have seen this year as result of the competition with the imported steel.