The planned closure of the loss-making long steel operations, blamed on weak domestic demand and competition from local scrap metal recylcing mini-mills and imports from China, is set to impact 3500 direct and indirect jobs.

ArcelorMittal SA's long steel operations produce fencing material, rail, rods and bars used in the construction, mining and manufacturing sectors.

The SA unit of world number two steelmaker ArcelorMittal SA  said it would start shutting down its blast furnaces in the first week of March. The last steel will be produced in late March or early April, it added. The final wind-down into care and maintenance will be fully implemented in the second quarter of 2025.

On February 6 the company unveiled a delay in the closure of long steel operations, citing talks with the government.

"The structural elements leading to the wind-down of the long steel business remain unaddressed despite extensive discussions," it said in a statement.

"We were unable to avoid what will be a significant negative impact on the economy."

ArcelorMittal SA wanted the government to remove a tax on scrap metal exports it said favoured recyclers. It also wanted the government to impose import duties and sought to negotiate lower electricity and freight rail costs.

Its operations loss from the longs business doubled to R1.1 billion ($59.46 million) in 2024, from R600 million ($31.2 million) the year before.

ArcelorMittal SA reported a wider R 5.1 billion ($265.2 million) headline loss in 2024, from R1.89 billion ($98.28 million) the year before.

--Reuters--