ArcelorMittal South Africa has announced that it will delay the closure of the long-steel plants in its loss-making state until August 31, after receiving a $191.50-million injection from the Industrial Development Corporation.

After failing to receive concessions from the government on its demands, the steelmaker announced on 28 February that it would stop long-steel production by April.

The company asked for lower tariffs on electricity and freight trains, import duties, and the removal of scrap metal export taxes that it claims gives its competitors an unfair advantage - recycling mini mills.

ArcelorMittal released a statement saying that the Industrial Development Corporation of South Africa provided a loan of 1.683bn rands to defer the wind-down.

Since November 2023, the closure of long-steel production, which produces fencing material, rails, rods, and bars for the construction, mining, and manufacturing industries, is expected.

The shutdown may affect approximately 3,500 jobs directly and indirectly. Reporting by Nelson Banya, Editing by Tomaszjanowski. $1 = 18.3925 rand.

(source: Reuters)