ArcelorMittal SA long plant closures delayed till end February
The closure of ArcelorMittal SA long steel plants in Vereeniging and Newcastle have been delayed till end February, as talks with Government and other stakeholders continue to seek a solution to save both the production capacity and the 3 500 jobs directly impacted.
This emerged after the African steel giant’s annual results released on Thursday this week.
ArcelorMittal SA reported a R5.1 billion headline loss for the financial year ending in December 2024, which included the severance packages of the anticipated full-time employee job losses.
The company’s share price tumbled and dropped by 12% on Thursday after the results were released.
ArcelorMittal SA CEO Kobus Verster, pointedly criticised the SA Government’s slow and insufficient response to the present steel industry survival crisis in South Africa.
Verster also shot down speculation that there was in fact a R1 billion rescue package negotiation under way with Government to save ArcelorMittal SA plant capacity and jobs.
One of the biggest issues confronting ArcelorMittal SA viability is the tide of cheap steel imports presently engulfing South Africa, especially from China – the reason why the company demands that the SA Government raises import tariffs on steel.
Steel imports increased 9.4% to 1.4 million tons in 2024 and are expected to increase dramatically in 2025 unless action is taken by Government, the Company says.
“About 60% of steel imports could be made locally.”
