ArcelorMittal South Africa to Halt Long Steel Production by April 2025, Impacting Thousands

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In a significant blow to South Africa’s steel industry, ArcelorMittal South Africa (AMSA) has confirmed it will cease long steel production by April 2025.

This decision follows prolonged struggles with weak domestic demand, rising operational costs, and stiff competition from both local mini-mills and a flood of Chinese steel imports.

The shutdown of the long steel division will have widespread implications, with an estimated 3,500 jobs on the line.

The company has already begun the phased process of winding down operations, with its blast furnaces set to go offline in early March and final steel production anticipated by late March or early April. By the second quarter of 2025, the affected facilities will transition into a care and maintenance phase.

A Struggling Industry

ArcelorMittal South Africa, the largest steelmaker in the country, has faced mounting pressures that have made long steel production increasingly unviable. Despite ongoing discussions with the South African government and industry stakeholders to find viable solutions, AMSA ultimately determined that the business unit could not sustain itself under current market conditions.

“We explored all possible alternatives to keep the long steel business operational, but the economic reality forced us to take this difficult decision,” said Kobus Verster, CEO of AMSA, in a statement.

“Our focus now is on mitigating the impact on affected employees and supporting communities that rely on our operations.”

The South African steel industry has been in distress for years, grappling with declining infrastructure spending, erratic energy supply, and rising production costs. The influx of cheaper steel imports, particularly from China, has further eroded the competitiveness of local manufacturers.

Job Losses and Economic Fallout

The closure will directly affect about 2,500 workers, with an additional 1,000 jobs at risk across the supply chain.

Trade unions have expressed grave concerns over the economic consequences, urging the government to step in with emergency measures to protect workers and prevent further deindustrialization.

Marius Croukamp, a spokesperson for the trade union Solidarity, criticized the government’s lack of intervention, saying, “This is a devastating blow to South Africa’s industrial sector. We need stronger policies to protect local steelmakers from cheap imports and ensure long-term sustainability.”

What’s Next?

While AMSA is shutting down its long steel operations, the company has assured that it remains committed to its flat steel production, which serves industries such as automotive, construction, and manufacturing. However, analysts warn that without structural changes in the market and policy environment, further contractions in South Africa’s steel sector could follow.

The impending closure marks a pivotal moment in the country’s industrial landscape, raising urgent questions about the future of local manufacturing and economic resilience in the face of global competition.

Policymakers, businesses, and workers alike will be watching closely to see what measures, if any, are taken to stabilize and revitalize the sector.

As South Africa braces for the economic aftershocks of AMSA’s decision, one thing is clear: the nation’s steel industry is at a crossroads, and its future hangs in the balance.

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