https://en.sputniknews.africa/20250106/arcelormittal-south-africa-to-close-long-steel-production-threatening-3500-jobs-1070062890.html
ArcelorMittal South Africa to Close Long-Steel Production, Threatening 3,500 Jobs
ArcelorMittal South Africa to Close Long-Steel Production, Threatening 3,500 Jobs
Sputnik Africa
The South African division of the world's second-largest steelmaker ArcelorMittal expects to cease steel production by the end of January 2025, with the... 06.01.2025, Sputnik Africa
2025-01-06T17:09+0100
2025-01-06T17:09+0100
2025-01-06T17:09+0100
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ArcelorMittal South Africa announced the closure of its long steel production in the country due to high costs and insufficient policy intervention, putting around 3,500 jobs at risk.A weak South African market for long steel products coupled with cheap imports, especially from China, are also reasons for the closure, which will affect about 3,500 direct and indirect jobs, the steelmaker said, adding that it expects losses for last year to increase significantly. The company will maintain a scaled-down coke-making operation at the Newcastle plant, in the north-west of the KwaZulu-Natal province. The decision to close the facilities in South Africa was first announced in November 2023, but ArcelorMittal temporarily postponed the closure following discussions with South African authorities. Following the announcement of the company's decision to cease its long-steel manufacturing, the share price fell by 15% and has continued to fall.
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south africa, southern africa, china, steel, production, industry, prices, market, stock market
ArcelorMittal South Africa to Close Long-Steel Production, Threatening 3,500 Jobs
Elizaveta Roschina
Writer/Editor
The South African division of the world's second-largest steelmaker ArcelorMittal expects to cease steel production by the end of January 2025, with the remaining production processes to be completed in the first quarter of 2025.
ArcelorMittal South Africa announced the closure of its long steel production in the country due to high costs and insufficient policy intervention, putting around 3,500
jobs at risk.
"Persistent high logistics and energy costs, combined with insufficient policy interventions (especially those policy decisions made some time ago […] relating to the substantial subsidization of scrap-based steelmaking operations to the detriment of the Newcastle Works - which beneficiates South African-sourced raw materials), have left the Longs Business unsustainable," ArcelorMittal South Africa said in a statement.
A weak South African market for long steel products coupled with cheap imports, especially from China, are also reasons for the closure, which will affect about 3,500 direct and indirect jobs, the steelmaker said, adding that it expects losses for last year to increase significantly.
"International steel prices remain unsustainably low amidst record Chinese exports," the statement read.
The company will maintain a scaled-down coke-making operation at the Newcastle plant, in the north-west of the KwaZulu-Natal province.
The decision to close the facilities in South Africa was first announced in November 2023, but ArcelorMittal temporarily postponed the closure following discussions with South African authorities.
"The company is at a point where any further delay could affect the sustainability of the company and therefore a decision cannot be pushed back any further," it pointed out.
Following the announcement of the company's decision to cease its long-steel manufacturing, the
share price fell by 15% and has continued to fall.
