The closure of the operations has been on the cards since November 2023 amid prolonged weak economic conditions, logistics and energy challenges and competition from low-cost imports.

The company said shutting the plant, which produces fencing material, rail, rods and bars used in the construction, mining and manufacturing sectors, could affect about 3 500 direct and indirect jobs.

"The company is at a point where any further delay could affect the sustainability of the company and therefore, a decision cannot be pushed back any further," Luxembourg-based ArcelorMittal SA's division said in a statement.

Last July, the company shelved plans to close the long steel operations as it pursued initiatives to restore profitability. Initial signs of recovery in international steel prices following Chinese stimulus measures were short-lived, it said.

The company expects a headline loss per share of between R4.06 ($0.22) and R4.41 ($0.24) for the year ended December 31, from a R1.70 ($ 0.09) loss one year earlier.

--Reuters--