ArcelorMittal, a leading European steel producer, has announced plans to shut down its South African plant, potentially impacting 3,500 jobs. In a statement, the company blamed rising operational costs and insufficient government policy support for the decision. The plant produces key construction and mining materials, including rails and rods, and its closure has been under consideration since 2023. Industry challenges, including a surge in cheap steel imports from China and declining demand, have compounded the issue. The South African Iron and Steel Institute has cited imported steel dumping as a significant factor, but analysts also highlight the country’s unreliable power supply and weak policy interventions. The closure underscores broader struggles within South Africa’s manufacturing sector, raising concerns over job losses and economic stability in affected regions.
Source: SEMAFOR