ArcelorMittal South Africa has decided not to shut down its long steel operations in the KwaZulu-Natal province and is working on a plan to make the operations viable.
In January, ArcelorMittal South Africa postponed the closure of the business by up to six months while engaging with the government and labor unions to address issues affecting profitability and prevent job losses.
The board and management have decided to continue operations to fully explore short, medium, and long-term initiatives aimed at securing the business’s sustainability, ArcelorMittal South Africa announced.
When the planned closure was announced last November, the company cited weak demand and infrastructure problems as key reasons. Additionally, it criticized policies favoring scrap metal over iron ore in steel production.
The reversal of the closure decision was attributed to several factors, including the non-renewal of a steel scrap export ban that expired in December 2023, improvements in port and rail efficiency, and a renewed commitment by South Africa to ensure a level playing field for local manufacturers. South African authorities are expected to implement a 9pct provisional safeguard duty on hot-rolled steel. ArcelorMittal South Africa also mentioned that applications for appropriate actions on other steel products, including long products, are being pursued.
