Africa’s largest steel producer ArcelorMittal South Africa has announced that it is has started negotiations with local unions about the potential closure of the company’s two mills at its Vereeniging Works that will affect more than 400 employees due to weak demand and lower prices.
While ArcelorMittal South Africa started to review its long steel business in July this year, the company stated that trading conditions have continued to deteriorate since then and the government’s actions to protect local producers would only relieve the local steel industry over the medium-to-long term.
The company also stated that it will consider alternative measures before cutting jobs.