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ArcelorMittal South Africa will cease production of long steel by April

ArcelorMittal South Africa announced on Friday that it will stop producing long steel by April of this year, after talks with the government did not succeed in preventing the closure.

The closure of the long-sealed operations is expected to affect 3,500 direct and indirectly employed workers. This will be due to the lack of domestic demand, competition from scrap metal recycling mini-mills in the area and imports from China.

ArcelorMittal South Africa’s long steel production operations produce rails, rods, and bars that are used in construction, mining, and manufacturing.

ArcelorMittal SA, the world's second largest steelmaker, has announced that it will begin shutting down their blast furnaces during the first week in March. It added that the last steel would be produced by late March or earlyApril.

The final transition to care and maintenance is fully implemented by the second quarter 2025.

The company announced on February 6 that it would delay the closure of its long-sealing operations due to talks with the government.

The statement said that "despite extensive discussion, the structural elements leading to a wind-down of long steel remain unaddressed."

"We could not avoid the negative impact that will have on the economy."

ArcelorMittal South Africa asked the government to remove an export tax it claimed favored recyclers. The company also asked the government to impose duties on imports and to negotiate lower freight rail and electricity costs.

The longs business's loss on operations doubled from 600 million rand in 2024 to 1.1 billion Rand ($59.46 millions) by 2024.

ArcelorMittal South Africa announced a larger headline loss of 5.1 billion rand in 2024 compared to 1.89 billion rand a year earlier. $1 = 18.4996 rand (Reporting and editing by David Evans, Clarence Fernandez).

(source: Reuters)