In talks to defer long steel plant closure.
In a SENS company statement ArcelorMittal South Africa (AMSA) referred shareholders to the announcement company announcement dated 28 February 2025 in which they were advised, inter alia, that the board of directors of ArcelorMittal South Africa and its management had commenced the final wind down of ArcelorMittal South Africa’s Long Steel Business.
“Government subsequently issued an announcement stating that it would continue to engage with AMSA in this regard and is doing so. AMSA is engaging with stakeholders, including Government, regarding funding and related matters to enable the deferral of the wind down of the Longs Business, as well as regarding the interventions previously announced.”
“It should be noted that without agreement regarding the funding and related matters, the deferral of the wind down of the Longs Business will not be feasible. Accordingly, the wind down process has not been stopped and is being managed in a manner that accommodates ongoing funding discussions.”
“During this time ArcelorMittal South Africa has received various approaches regarding the strategic
alternatives for the Company, as well as the Longs Business. None of the approaches constitute a firm intention to make an offer in terms of the Companies Act, 2008. The Company will continue to explore strategic alternatives where appropriate. Further announcements will be issued regarding these matters as and when appropriate.”
Apart from seeking funding, AMSA has asked the government to remove an export tax on scrap metal, which it says gives an unfair advantage to recyclers. The company also wants the government to impose import duties and facilitate lower electricity and freight rail costs.
A spokesperson for South Africa’s industry ministry confirmed talks with AMSA and other industry players: “Government is engaged on saving the jobs,” the spokesperson said by e-mail.
The planned closure, announced in November 2023, was blamed on weak demand and persistent infrastructure problems. It would impact 3 500 direct and indirect jobs, while also disrupting supply into the automotive components manufacturing sector as well as the mining, rail and construction industries.
AMSA’s longs business’ operational loss doubled to R1.1 billion in 2024, from R600 million the year before. The company reported a headline loss of R5.1 billion for the year ended 31 December 2024, compared with a R1.89 billion headline loss in 2023.
It said at the time the losses were driven by poor financial performance at its long steel business as well as low-cost steel imports, particularly from China.
The closure of long steel production would have an effect on fencing material, rail, rods and bars.
