ArcelorMittal South Africa to close long-steel business, putting 3,500 jobs in jeopardy
ArcelorMittal South Africa Ltd. will close its business that makes long-steel products, potentially affecting about 3,500 jobs.
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Persistent high logistics and energy costs, together with insufficient policy interventions by the government, left the business unsustainable, the company said in a statement Monday. The wind-down will hit both its Newcastle and Vereeniging Works, as well as rail and structures unit Amras. A scaled-back coke-making operation at Newcastle will continue, reflecting reduced demand, it said.
The company said steel production will likely cease by the end of the month and it has yet to determine the final number of job losses.
A decision to shutter the business was previously announced last February, but the company delayed the move after consulting with the government and state-owned freight firm.
South African steel industry “is facing its greatest sustained challenge” since the 2008 financial crisis, the firm said, adding that deteriorating global and local steel markets, high expenses and surging low-cost imports — particularly from China — have damaged the business.
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