ArcelorMittal Called Off Plans to Shut Down Steelmaking Operations

SEATTLE (Scrap Monster): ArcelorMittal’s South African division has decided not to shut down its steel plant in the province of KwaZulu-Natal. The company will now focus on developing a new plan to ensure the viability of its steel operations in the region.

The initial announcement of planned closure came in the month of November last year. At that time, it had cited weak demand and ongoing infrastructure challenges as the reasons behind the decision. The company had also raised concerns over the government’s policy to prefer scrap over iron ore in steel production.

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 Earlier in January this year, the company had decided to postpone the closure of the business for a period of six months. The company has been indulging in discussions with the government representatives as well as trade union leaders on addressing issues affecting profitability, in order to prevent job cuts.

The latest decision to postpone the closure of the facility is expected to save approximately 3,500 direct jobs.

Announcing the decision, the ArcelorMittal South Africa Board of Directors noted that the Long Products Division will continue to operate, while fully exploring various sustainability initiatives. Currently, there are some improvements in power generation as well as port and rail efficiency, it noted.