Global refractories producer RHI Magnesita, a company made up of Brazil’s Magnesita and Austria-based RHI, will reduce output as a way to prevent massive layoffs, according to a media report by Valor.
The media report said a third of its workforce is located in both Brazil and Argentina, with the latter enforcing a complete lockdown to contain the Covid-19 outbreak. Both countries account for 5,500 workers, the media report said. In Brazil, RHI Magnesita has facilities in Minas Gerais and Bahia states.
“Our clients are global, and the impact of such a crisis is global as well,” said Francisco Carrara, CEO at RHI Magnesita in South America.
The company is considering furloughs, in which it could either grant “paid collective vacations” in Brazil or reduce wages, while also diminishing shift times.
“In Brazil, at the moment, we’re not laying off workers,” Carrara said.
Carrara did not estimate the impact Covid-19 could have in the company’s revenue figures in 2020.