ArcelorMittal South Africa says on course to close long steel plants in September
ArcelorMittal South Africa (AMSA) said on Thursday it is still on track to close its loss-making long steel operations in September, as talks with the government have not provided a solution.
The steelmaker also posted a half-year headline loss of R1.01-billion, slightly narrower than a R1.1-billion loss reported previously, on persistently low sales volumes and low prices.
Its revenue fell 17% to R17-billion and sales volumes declined 11% to 1.05-million metric tons due to weak demand from key steel consuming sectors in South Africa.
AMSA has twice deferred the closure of its long steel plants in Newcastle and near Johannesburg, initially announced in November 2023, to allow talks with the government aimed at saving 3 500 direct jobs.
"In the absence of a sustainable solution, the final wind-down of the longs business remains scheduled for 30 September 2025," the company said in a statement.
South Africa's trade and industry minister Parks Tau told lawmakers on July 4 that the government was in "firefighting mode" as it tries to avoid the plant closures.
The company says its long steel operations are buckling under the pressure of weak local demand, high electricity tariffs, poor freight logistics, competition from local scrap metal recycling mini-mills and imports from China.
The long steel plants supply rail, roads and bars to the construction, mining and manufacturing sectors as well as components for the automotive industry.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Comments
Research Reports
Projects
Latest Multimedia
Showroom
Goodwin Submersible Pumps Africa is sole distributors for Goodwin electrically driven, submersible, abrasion resistance slurry pumps.
VISIT SHOWROOM
SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
