ArcelorMittal SA delays closures of Vereeniging and KZN steel business by a month

VEREENIGING - ArcelorMittal SA has announced it will delay the closure of its long steel business in Vereeniging and Newcastle by a month, while government tries to find a way to save the troubled business division. This comes as the steelmaker last month said its loss-making long steel business would cease operations by the end of January. A year of talks with government stakeholders, which sought to find a solution, ultimately came to nought. AMSA announced this morning the planned wind-down into care and maintenance of the company's longs business, initially scheduled to start at the end of January 2025, has been delayed by approximately one month. The organisation’s Tami Didiza said in a statement this extension, supported by an R380 million shareholder loan from the Industrial Development Corporation, will enable the fulfilment of outstanding orders, particularly for automotive and seamless tube customers. This while discussions continue with government regarding the future of the long steel business division. According to News24, news of the wind-down in operations elicited immense outcry from various stakeholders over the impact on the economy, prompting government to reportedly begin work on a potential rescue package of up to R1 billion.