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ArcelorMittal South Africa to close plant, shares plunge

Steel producer ArcelorMittal South Africa's shares fell more than 15%. on Monday after the business stated it would continue with the. closure of its lossmaking long steel business.

The closure of the operations has actually been on the cards given that. November 2023 in the middle of extended weak financial conditions, logistics. and energy obstacles and competitors from low-priced imports.

The company said shutting the plant, which produces fencing. product, rail, rods and bars utilized in the construction, mining. and manufacturing sectors, could impact about 3,500 direct and. indirect tasks.

The business is at a point where any further hold-up could. impact the sustainability of the company and for that reason, a. choice can not be pushed back any even more, Luxembourg-based. ArcelorMittal SA's South African division stated in a. declaration.

Last July, the company shelved strategies to close the long steel. operations as it pursued efforts to bring back success. Initial signs of recovery in international steel prices. following Chinese stimulus measures were short-lived, it said.

The business expects a heading loss per share of in between. 4.06 rand ($ 0.2164) and 4.41 rand for the year ended Dec. 31,. from a 1.70 rand loss one year earlier.

(source: Reuters)