ArcelorMittal South Africa (AMSA) is still proceeding with the closure of its Longs Steel business despite talks of a R3 billion bailout. In February 2025, the company’s management commenced the final wind-down of its Longs Business.
Subsequently, the government said it would continue engaging with AMSA in this regard. These discussions are ongoing.
In a cautionary announcement to the market, AMSA said it is engaging with stakeholders, such as the South African government, regarding funding and related matters to defer the wind-down of the Longs Business. However, it warned that, without an agreement regarding the funding and related matters, the deferral of the winding down of the Longs Business would not be feasible.
“Accordingly, the wind-down process has not been stopped and is being managed in a manner that accommodates ongoing funding discussions.”
The group said that it has received various approaches regarding the strategic alternatives for the company and the Longs Business. However, none of these approaches constitutes a firm intention to make an offer regarding the Companies Act, 2008. The company said it will continue exploring strategic alternatives.
Recent reports over said that AMSA is seeking a R3.1 billion bailout to stop the closure of the crucial steel mills. The funds from the Industrial Development Corp, a company shareholder, would prevent the full idling of its long-steel plants planned for Q2 2025.
This would stop the loss of 3 500 direct and indirect jobs. Experts have warned that the closures could lead to over 100 000 job losses due to knock-on effects in the manufacturing sector.
AMSA had initially planned to close its sites in the Vereeniging, Gauteng and Newcastle, KZN facilities at the end of January. However, it was delayed to fulfil its order book.
According to the report, AMSA hopes that antitrust laws will be relaxed, allowing it to merge with smaller mills. It also wants lower electricity prices from Eskom.
The Department of Trade, Industry and Competition is also reportedly looking at ways to retain the capacity to make long-steel products in the country should AMSA no longer run its plants.
