According to local media reports, Africa’s largest steel producer ArcelorMittal South Africa (AMSA) is asking for a ZAR 3.1 billion ($170.28 million) rescue package from the South African government to prevent the closure of its steel mills in South Africa.
As previously reported by SteelOrbis, the producer had announced earlier this month that it will proceed with its original plan to shut down its longs business consisting of its Newcastle and Vereeniging works, after its talks with the government and stakeholder fell through.
AMSA is now appealing to the Industrial Development Corporation (IDC), a national finance institution that has a 6.4 percent stake in the company, for a fund totaling 3.1 billion ZAR. The closure of Newcastle and Vereeniging works will push 3,500 people out of jobs.