The company had initially planned to begin winding down its loss-making long-steel business by the end of last month but has postponed the process due to ongoing negotiations with the SA government, as well as higher-than-expected orders.

ArcelorMittal SA stated that the outcome of these discussions will be announced before the end of this month.

The company also revealed that a $20.44 million loan from the Industrial Development Corporation of South Africa (IDC), its second-largest shareholder after parent company ArcelorMittal, has allowed it to continue operations in the interim.

For the financial year ended 31 December, ArcelorMittal SA reported a headline loss of $270 million, significantly wider than the $100 million loss recorded in 2023.

According to the company, these losses were primarily driven by weak financial performance in its long-steel division, citing soft demand, high energy and logistics costs, and an influx of low-cost steel imports, particularly from China.

The planned closure of the long-steel operations, which manufacture fencing materials, rail, rods, and bars used in the construction, mining, and manufacturing sectors, has been under consideration since November 2023. The shutdown could put approximately 3 500 direct and indirect jobs at risk.

--Reuters--