Hulamin To Consider Cost Rationalisation
Hulamin Limited operates a number of businesses that process rolled and extruded aluminium products, supplying its customers both in the local and international markets. Its largest operations are Hulamin Rolled Products and Hulamin Extrusions. On 28 May 2019, Hulamin Extrusions embarked on a consultation process with employees aimed at supporting the business’ return to profitability and generating positive cash flows. That process is proceeding according to plan, albeit under difficult circumstances in the current economic climate.
Since the end of 2018, market conditions for Hulamin’s products have become notably more challenging. A deep recession in the local market, accompanied by an overstocked distribution channel, a slowdown in automotive demand and softening demand in Hulamin’s USA engineering product markets has resulted in lower US Dollar prices and sales volumes. There has been a consequent erosion of profitability, and an increase in inventory. Hulamin has prepared a turnaround plan, which is actively being implemented. The plan focuses on expediting market actions to bring in additional, higher margin sales, cost reductions and unlocking working capital.
Cost reductions have become necessary and are likely to affect both direct and indirect employees. Commencing this week, Hulamin is to embark on an engagement process with employees and their representatives to reduce the cost of employment, in line with the above plans. Hulamin expects that this process will contribute to the important turnaround being expedited by the company.
All correspondence and enquiries are requested to be directed to Group Executive ‐ Corporate Affairs, Ms. Ayanda
Mngadi or Group Communications Manager, Ms. Noma Kanyile. Email: Ayanda.Mngadi@hulamin.co.za or call 061 284
1289 alternatively Noma.Kanyile@hulamin.co.za, 071 877 0327