ArcelorMittal SA's Battle to Survive: Steel Plant Closures Loom

ArcelorMittal South Africa is grappling with challenges threatening the closure of its long steel operations. Despite discussions with the government, the company revealed that substantial obstacles remain unresolved. These include weak domestic demand for steel, soaring electricity tariffs, and intense competition, both locally and from imports.

Trade and Industry Minister Parks Tau informed lawmakers of the government's urgent measures to prevent closure, emphasizing efforts to preserve 3,500 jobs. The South African government has already intervened financially with the Industrial Development Corporation injecting funds to postpone shutdowns to September 30.

The market is inundated with imports, constituting over a third of local demand, exacerbating ArcelorMittal's operational risks. The company expects a narrowed headline loss and will disclose its financial performance soon, hoping to navigate the crisis without sacrificing crucial operations.

(With inputs from agencies.)