(Reuters) -ArcelorMittal South Africa will defer the closure of its loss-making long steel plants to August 31 after getting a 1.683 billion rand ($91.50 million) injection from the state-owned Industrial Development Corporation, the steelmaker said on Monday.
The steelmaker, which has been in talks with the government about a relief package, announced on February 28 it would cease long steel production by April after failing to get concessions on its demands.
The company had asked for lower electricity and freight rail tariffs, the imposition of import duties and the removal of a scrap metal export tax it says gives its competitors – recycling mini-mills – an unfair advantage.
“The deferral of the wind down has accordingly been enabled by a facility provided by the Industrial Development Corporation of South Africa in the amount of 1.683 billion rand,” ArcelorMittal said in a statement.
The closure of the long-steel operations, which produce fencing material, rail, rods and bars used in the construction, mining and manufacturing sectors, has been expected since November 2023.
The shutdown could affect about 3,500 direct and indirect jobs in total.
($1 = 18.3925 rand)
(Reporting by Nelson BanyaEditing by Tomasz Janowski)
