Johnathan Paoli
Steel producer ArcelorMittal South Africa (AMSA) has indicated that it may close its long-products business, which could result in the loss of 3 500 direct and contractor jobs at its Newcastle and Vereeniging operations.
The steelmaker cited a 20% fall in demand over the last seven years, rising transport and logistics costs and the prevailing scrap advantage over iron-ore as reasons for giving up the operations.
This comes after years of aggressive cost cuts to save the business, despite a declining rate of profitability for the company.
AMSA slumped to a R448-million loss in the interim period to June 30, a dramatic deterioration from the comparable period of 2022 when it reported a R3-billion profit.
The poor performance was attributed to intense load shedding during the period and the negative impact of the collapse of the Transnet Freight Rail service.
AMSA CEO Kobus Verster said the board reached
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