LUXEMBOURG (dpa-AFX) - ArcelorMittal South Africa, a unit of steel major ArcelorMittal SA (MT), announced on Monday that it has decided to wind down the Longs Business hurting 3,500 jobs. This decision follows sustained challenges, including weak economic growth, high logistics and energy costs, and an influx of low-cost steel imports, particularly from China.
The company said that it will now transition the Longs Business into care and maintenance. Steel production is expected to cease by late January, with the wind-down of the remaining production processes completed in the first-quarter of 2025.
It is envisaged that around 3,500 direct and indirect jobs will be impacted. The broader economic impact on induced jobs is expected to be significantly higher, especially in the Newcastle region.
ArcelorMittal noted that it is actively working to realign its R1 billion working capital facility secured in 2024 to support this transition.
Looking ahead to the full-year 2024, the company expects loss within a range of R5.48 to R6.21 per share, compared to the previous year's loss of R3.52 per share.
Headline income per share is projected to loss between R4.06 and R4.41 per share, from the prior year's loss of R1.70 per share.
Annual revenue is also anticipated to decline by over 5 percent from last year, as a result of weaker net realized prices, reduced asset utilization, and the challenges in the Longs Business.
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