Hulamin to lay-off 380 employees after loss in its aluminium extrusions division in H1 2019

JSE-listed aluminium supplier Hulamin will reportedly shed some of its workforce. Around 380 employees are expected to lose their jobs as Hulamin has begun a right-sizing exercise after facing downfall in its aluminium extrusions division.

Expressing deep regrets, chief executive officer Richard Jacob said it was unfortunate that the company had to consider laying off some its workforce. But since Hulamin Extrusions suffered a loss in the first half of the year, action is to be taken to improve profitability levels in the months ahead through cost reductions, explained Jacob.

According to him, jobs of around 180 employees from Hulamin’s extrusion plant in Midrand and 200 employees from the plant in Pietermaritzburg will be affected by the right-sizing process.

In H1 2019, Hulamin’s revenue recorded a decline of 1 per cent to R5.25 billion and the operating profit by 149 per cent to a loss of R77.7 million. Net debt, as a result, rose to R596 million. Headline earnings slumped 174 per cent to a loss of R63 million, largely due to losses at Hulamin Extrusions and a R53 million metal price lag loss.

Jacob has held low-priced Chinese imports and rising operating costs responsible for the woes of Hulamin’s aluminium extrusions business.

Hulamin’s expected job losses are, however, still below those of reported by Tongaat Hulett when it announced in May that about 5000 workers were set to lose their jobs as the agriculture and property giant restructures its business.