9,334.13 TL BIST 100 BIST 100
4.35 CNY CNY CNY
31.13 $ USD USD
€33.79 EUR EUR
0.13 CNY CNY/EUR CNY/EUR
43.99 TL Interest Interest
82.53 $ Fossil Oil Fossil Oil
22.53 $ Silver Silver
3.85 $ Copper Copper
113.60 $ Iron Ore Iron Ore
394.00 $ Ship Dismantling Ship Dismantling
2,034.63 TL Gold (gr) Gold (gr)

Crisis hits ArcelorMittal South Africa as long steel unit closure looms

ArcelorMittal SA: 7% Share Dip Sparks Concern Over Long Steel Unit Closure and Job Loss

Crisis hits ArcelorMittal South Africa as long steel unit closure looms

ArcelorMittal South Africa (ACLJ.J) witnessed a sharp decline of over 7% in its shares following the company's announcement of the impending closure of its long steel operations. This decision is attributed to subdued demand and persistent infrastructure challenges, potentially leading to the loss of 3,500 jobs. The closure of the long steel unit is expected to impact both full-time staff and contractors. Over the past seven years, steel consumption in Africa's most advanced economy has plummeted by 20% due to limited infrastructure investments and project delays.

South Africa faces ongoing rail logistics issues and a deepening electricity crisis, further exacerbating costs for businesses like ArcelorMittal. Faced with these challenges, the company's board and management find themselves compelled to initiate a process considering the wind-down of the Longs Business, possibly placing it in care and maintenance. The potential job losses encompass both full-time employees and contractors.

In the first half of the year, ending on June 30, the company reported a headline loss of 448 million rand, a stark contrast to the 3 billion rand profit recorded in the same period the previous year. This financial downturn is attributed to South Africa's electricity crisis, high inflation rates, and weakened demand from crucial steel-consuming sectors.

Comments

No comment yet.

Only +plus subscribers can access this content.

SUBSCRIBE now to share your thoughts on the markets and get more comments.
SUBSCRIBE If you already have an account Sign In

Most read news

Ukraine steel shows export growth in January 2024

Tuesday, February 27, 2024

Taiwan steel manufacturers adjust prices amid market dynamics

Tuesday, February 27, 2024

Indonesian company MIND ID increases its stake in Vale Indonesia for nickel mining

Tuesday, February 27, 2024

A decrease in Türkiye's ferroalloy trade was recorded in 2023

Tuesday, February 27, 2024

Russia leading the increase in coking coal supplies to India

Tuesday, February 27, 2024
Follow List
Expand
Your watch list is empty

Add your favorite commodities for quick access and don't miss the latest price change news.


There are no news categories you follow
Edit Notification Preferences
E-bulletin subscription
Sign up to receive the latest news and daily iron prices by e-mail and sms
Become a Plus Subscriber Now!
Try it free for 3 days!
Subscribe Now
Neutral Prices
Be informed
Provincial Iron Prices
Comments and Analysis
Subscribe Now