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ArcelorMittal South Africa to Close Long-Steel Business, Reopen Iron Ore Mine

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Arcelormittal,Job Losses,Steel Industry

ArcelorMittal South Africa (Amsa) announced the closure of its long-steel production business, resulting in an estimated 3,500 job losses. The company will refocus on its flat-steel business and explore new opportunities, including reopening its Thabazimbi iron ore mine. CEO Kobus Verster stated that the loss-making long-steel segment negatively impacted the company's overall performance and investment capabilities.

Government could have taken ‘easy decisions’ to avert the shutdown, says CEO.ArcelorMittal South Africa , which announced the winding up of its long-steel business on Monday, will now refocus its efforts on its flat-steel business and new opportunities such as the restart of operations at its Thabazimbi iron ore mine in Limpopo province.

ArcelorMittal notes that the final number of retrenchments as a result of the closures will depend on “agreed alternatives and consultation outcomes”, but it is envisaged that approximately 3 500 direct and indirect jobs may be affected.According to Verster, the closure of the long-steel business will “remove” around one million tonnes of the product from the market.

ArcelorMittal has pondered the reopening of the Thabazimbi iron ore mine for a number of years since acquiring it from Kumba Iron Ore in February 2017. At the time, ArcelorMittal was the mine’s sole customer. ArcelorMittal also intends to re-establish itself as an exporter into sub-Saharan Africa and other key geographies, which will enable the company to “operate at full capacity” until the local steel market recovers.

According to Verster, the Department of Trade, Industry and Competition was informed of the intended closure on 21 December last year, but there has been “no feedback”.

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ArcelorMittal South Africa to Shut Down Long Steel Business, Citing Economic ChallengesArcelorMittal South Africa's decision to close its long steel business threatens 3,500 direct and indirect jobs at its Newcastle and Vereeniging operations. The company cites prolonged weak economic conditions, logistics and energy challenges as reasons for the shutdown. Industry players express disappointment and warn of broader economic consequences, highlighting South Africa's struggle with deindustrialization.
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