9,312.13 TRY BIST 100 BIST 100
38.31 USD USD USD
5.29 CNY CNY CNY
43.49 EUR EUR EUR
0.12 CNY CNY/EUR CNY/EUR
46.74 TRY Interest Interest
66.21 USD Fossil Oil Fossil Oil
41.10 USD Silver Silver
488.00 USD Copper Copper
99.70 USD Iron Ore Iron Ore
325.00 USD Shipbreaking Scrap Shipbreaking Scrap
4,091.06 TRY Gold (gr) Gold (gr)

ArcelorMittal is ending long steel production: 3,500 people will lose their jobs

ArcelorMittal South Africa has decided to shut down its long steel products division due to high costs and low-cost imports. This decision could lead to the loss of 3,500 jobs and negatively impact the country's economy.

ArcelorMittal is ending long steel production: 3,500 people will lose their jobs

ArcelorMittal South Africa Ltd. has decided to close its long steel products division, potentially affecting around 3,500 jobs. The company had initially announced the decision in February last year, but delayed the move after consulting with the government and state-owned freight firms. The closure is driven by high logistics and energy costs, as well as insufficient government policies to support the sector. ArcelorMittal cited deteriorating local and global markets, rising costs, and the influx of low-cost imports, particularly from China, as key factors contributing to the decision.

South Africa's steel industry is facing its most significant economic challenge since the 2008 financial crisis. In recent years, the rise in imports from low-cost producers like China has continued to pressure local manufacturers. As a result, production at ArcelorMittal's Newcastle and Vereeniging Works will cease. According to the company, the closure will lead to substantial losses in the country's economy and job market.

The company also expects to report a larger loss for the year 2024. The headline loss per share is projected to increase from 1.70 rand last year to between 4.06 rand and 4.41 rand. This closure has dealt a significant blow to the South African government's efforts to revive the steel sector with business-friendly policies. Over the past decade, the South African economy has grown by an average of less than 1% annually, while population growth has outpaced this growth, further hindering the government's industrial revival goals.

Comments

No comment yet.

Only +plus subscribers can access this content.

SUBSCRIBE now to share your thoughts on the markets and get more comments.
SUBSCRIBE If you already have an account Sign In

Most read news

İsdemir to build a SPP worth TRY 701.6 million in Diyarbakır

Tuesday, April 22, 2025

Mexico continues negotiations with US for tariff exemption on steel and auto exports

Tuesday, April 22, 2025

UAE scrap and steel market seeks balance as saudi rebar prices hold steady

Friday, April 25, 2025

France seeks safeguards against imported Chinese steel

Friday, April 25, 2025

Sustainable transformation in the steel industry: Gemini Corporation's vision and actions

Friday, April 25, 2025
Follow List
Expand
Your watch list is empty

Add your favorite commodities for quick access and don't miss the latest price change news.


There are no news categories you follow
Edit Notification Preferences
E-bulletin subscription
Sign up to receive the latest news and daily iron prices by e-mail and sms
Become a Plus Subscriber Now!
Try it free for 3 days!
Subscribe Now
Neutral Prices
Be informed
Provincial Iron Prices
Comments and Analysis
Subscribe Now