ArcelorMittal calls off a plan to close South African steel plant
Steel

ArcelorMittal calls off a plan to close South African steel plant

ArcelorMittal's South African division has opted not to close its steel plant that manufactures rolled bars, instead focusing on developing a plan to ensure its viability, more than six months after initially announcing its intention to shut it down. In January, the world's second-largest steelmaker postponed the closure of the business for up to six months while engaging with government and labour to address profitability issues and prevent job losses. In a trading update, ArcelorMittal South Africa stated, "The board and management have decided that the longs (steel) business will continue to operate to allow an opportunity for the short, medium, and longer-term initiatives aimed at securing its sustainability to be fully explored." Located in Newcastle, KwaZulu-Natal province, the plant produces fencing material, rail, rods, and bars essential for sectors like construction, mining, and manufacturing. When the closure was initially announced last November, ArcelorMittal cited weak demand and ongoing infrastructure challenges in South Africa's most developed economy. The company also criticised policies favouring scrap metal over iron ore in steel production. ArcelorMittal South Africa highlighted improvements in electricity supply as well as efficiencies in ports and railways. The expiration of a steel scrap export ban in December 2023 has begun to level the playing field in input cost structures between integrated steelmakers like ArcelorMittal and scrap-based producers, according to the company. To support ongoing operations, the company secured a working capital facility of $54.29 million. Despite stable performance in its long steel operations during the six months ending June 30, ArcelorMittal anticipates increased losses due to challenging trading conditions and disruptions at its Vanderbijlpark furnaces, where flat steel products are manufactured.

ArcelorMittal's South African division has opted not to close its steel plant that manufactures rolled bars, instead focusing on developing a plan to ensure its viability, more than six months after initially announcing its intention to shut it down. In January, the world's second-largest steelmaker postponed the closure of the business for up to six months while engaging with government and labour to address profitability issues and prevent job losses. In a trading update, ArcelorMittal South Africa stated, The board and management have decided that the longs (steel) business will continue to operate to allow an opportunity for the short, medium, and longer-term initiatives aimed at securing its sustainability to be fully explored. Located in Newcastle, KwaZulu-Natal province, the plant produces fencing material, rail, rods, and bars essential for sectors like construction, mining, and manufacturing. When the closure was initially announced last November, ArcelorMittal cited weak demand and ongoing infrastructure challenges in South Africa's most developed economy. The company also criticised policies favouring scrap metal over iron ore in steel production. ArcelorMittal South Africa highlighted improvements in electricity supply as well as efficiencies in ports and railways. The expiration of a steel scrap export ban in December 2023 has begun to level the playing field in input cost structures between integrated steelmakers like ArcelorMittal and scrap-based producers, according to the company. To support ongoing operations, the company secured a working capital facility of $54.29 million. Despite stable performance in its long steel operations during the six months ending June 30, ArcelorMittal anticipates increased losses due to challenging trading conditions and disruptions at its Vanderbijlpark furnaces, where flat steel products are manufactured.

Next Story
Equipment

Handling concrete better

Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select wellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

Next Story
Real Estate

Elevated floors!

Raised access flooring, also called false flooring, is a less common interiors feature than false ceilings, but it has as many uses – if not more.A raised floor is a modular panel installed above the structural floor. The space beneath the raised flooring is typically used to accommodate utilities such as electrical cables, plumbing and HVAC systems. And so, raised flooring is usually associated with buildings with heavy cabling and precise air distribution needs, such as data centres.That said, CW interacted with designers and architects and discovered that false flooring can come in handy ..

Next Story
Infrastructure Urban

The Variation Challenge

A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?