Shares in steel manufacturer, ArcelorMittal SA, plunged more than 10% on Wednesday after the Lakshmi Mittal controlled company said its headline loss to increase by at least R2 billion.

Hit by the impact of Covid-19 which caused demand for steel to plunge, the group has had to  embark on a "large-scale restructuring". ArcelorMittal South Africa is part of global steel manufacturer and mining group ArcelorMittal, which has about 190 000 employees worldwide.

The steelmaker has been on a downturn for almost three years, according to Makwe Masilela, chief investment officer at Makwe Fund Managers. “This company has been struggling even before Covid-19, which has just exacerbated the situation. The ArcelorMittal we knew is no longer there and the owners might just have to offload the whole thing.”

At 15:00, ArcelorMittal South Africa shares were trading 12.5% lower, and over the past five years its stock has plunged 98%.