Arrium axes steel chief executive role

3 December 2015

Arrium will cut its steel chief executive role, with the announcement coming hot on the heels of last month’s decision to axe 250 jobs from the company’s Whyalla steelworks by the end of the financial year.

The company (ARI) said current steel chief executive Steve Hamer, who was appointed in July 2013, will depart the company on January 11.

“Mr Hamer has elected to leave Arrium as the organisational changes will result in no suitable alternative roles being available,” the company said.

The company said a “simplified and flatter” organisational structure for its steel business would be implemented shortly.

“Today’s announcement forms part of the company’s continuing focus on lowering its cost base and improving performance, including through the redesign of its organisational structure,” it said.

The mining and materials group last month announced the cuts to its Whyalla workforce, which followed the cutting of 55 jobs in October. The latest reduction included 200 fulltime positions and brought the company’s identified savings to $60 million, still about $40 million short of its target.

Arrium made a $1.9 billion loss in 2014-15 as a plunge in iron ore prices caused asset impairments and restructuring costs.

The company’s steel revenues were flat last financial year, at $2.8 billion against total revenue of $6.086bn.

Arrium shares were flat at 7.4c at 12.47pm (AEDT) against a benchmark decline of 0.55 per cent.