Indian steel magnate Lakshmi Mittal and the chairman of ArcelorMittal met with a number of South African ministers in Davos, Switzerland this week to discuss the planned closure of steel mills in the country.
Image: ArcelorMittal
Indian steel magnate Lakshmi Mittal and the chairman of ArcelorMittal met with a number of South African ministers in Davos, Switzerland this week to discuss the planned closure of steel mills in the country.
ArcelorMittal South Africa said in early January that it had decided to close its Longs Business, which may result in the loss of about 3,500 jobs at the Newcastle Works, Vereeniging Works, and the rail and structures subsidiary, AMRAS.
Several South African ministers, including President Cyril Ramaphosa, are attending the World Economic Forum (WEF) in Davos.
Finance Minister Enoch Godongwana, Trade, Industry and Competition Minister Parks Tau, and Electricity Minister Kgosientsho Ramokgopa met with Mittal to explore ways how to avoid the closer and avert jobs crisis in the sector, according to National Treasury.
Officials have not come out publically and said what agreements were reached as yet, but noted that one of the main topics of discussion was what led to the decision to close the business.
ArcelorMittal South Africa said that steel production is anticipated to cease by late January 2025, with the wind-down of the remaining production processes completed in the first quarter of 2025.
The steelmaker also warned shareholders in October about anticipated losses for the third quarter, driven by poor financial performance in the Longs Business.
The main reasons cited include deteriorating global and local steel markets, high energy and logistics costs, and a surge in low-cost steel imports, particularly from China.
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