ArcelorMittal: ArcelorMittal will close steel related business in South Africa, 3500 people will lose their jobs

ArcelorMittal’s South Africa-based unit on Tuesday said it plans to shut down its steel business in the country due to weak demand and infrastructure problems. According to the company, 3,500 jobs may be lost due to closure of steel business operations. The company’s long steel unit produces fencing materials, rails, rods and bars used in the construction, mining and manufacturing sectors. The ArcelorMittal foundry also produces flat steel and tubular products.

The South African unit of ArcelorMittal, the world’s No. 2 steelmaker, said steel consumption in Africa’s most advanced economy has fallen 20% over the past seven years. The biggest reason for this is limited spending on infrastructure and delays in projects.

ArcelorMittal South Africa said in a statement that rail logistics problems and a deepening power crisis in South Africa have increased business costs. “In the circumstances, the ArcelorMittal South Africa board and management have no option but to initiate the process of winding down the company’s longs business,” the company said.

ArcelorMittal South Africa said the 3,500 jobs affected include full-time employees and contract workers.

South Africa’s power crisis, high inflation and weak demand from key steel-consuming sectors led the company to a loss of 448 million rand in the first half ended June 30, compared to a profit of three billion rand in the same period last year. Was.