Amid its global production cutbacks, ArcelorMittal has decided to slow its $153 million expansion project at its Dofasco steel mill in Hamilton, Ontario, according to local news media reports Thursday. ArcelorMittal Dofasco's goal is to save a total of about $200 million by the end of 2013 by initiating an immediate hiring freeze, reducing capital spending, and placing new employees into a pension contribution plan.
The new cost-savings plan will eliminate about 700 jobs and cut down overtime and replacement workers, putting a cap on vacation entitlements, and a reduction in the length of shift hours for some employees. ArcelorMittal Dofasco will also close its open-coil annealing line.
As SteelOrbis previously reported, ArcelorMittal has announced numerous cutbacks and closures at its global operations in recent weeks, including temporarily suspending upgrades in Brazil and shutting down plants in Europe.