In a strategic move, ArcelorMittal South Africa (AMSA) is set to cease its long steel business operations. Citing the challenging economic conditions and the need for prudent business decisions, AMSA is embarking on the process of winding down its long steel business, which is anticipated to enter a care and maintenance phase.
Despite AMSA's efforts in implementing various cost-saving measures across the supply chain, from raw materials to production, the trading environment in South Africa has not witnessed a significant improvement over the past few years.
The decision to shutter the long products business comes in the wake of South Africa's sluggish GDP growth, resulting in a decline in the country's apparent steel consumption. Additionally, domestic shipping costs have surged, further impacting AMSA's operational viability.
This strategic business shift will unfortunately have repercussions on the workforce, affecting approximately 3,500 jobs. Among the affected facilities are the Newcastle Works, Vereeniging Works, and rolling mills utilizing materials sourced from Newcastle as raw materials.
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