ArcelorMittal South Africa Secures Lifeline to Delay Plant Closure

ArcelorMittal South Africa has postponed the closure of its struggling long steel plants to August 31 following a 1.683 billion rand financial infusion from the Industrial Development Corporation. The company initially planned to cease production in April due to unmet demands for lower tariffs and import duties.

ArcelorMittal South Africa has announced a delay in the shutdown of its long steel production facilities until August 31, following a substantial financial boost from the Industrial Development Corporation valued at 1.683 billion rand.

The steelmaker had previously declared an April termination due to unresolved negotiations with the government over relief measures. These included requests for reduced electricity and freight rail tariffs, the introduction of import duties, and the removal of a scrap metal export tax.

The planned cessation, which has been looming since November 2023, threatens to impact around 3,500 jobs both directly and indirectly.

(With inputs from agencies.)