3,500 jobs threatened as ArcelorMittal halts activity in South Africa
Steelmaker ArcelorMittal will halt its production of long steel in South Africa after consultations with the government were unsuccessful. The move puts 3,500 jobs under threat. A new CEO has been appointed at ArcelorMittal Belgium at a time when there is much uncertainty over a major greening project at the Ghent site.
The shutdown in South Africa was announced in November 2023 but the decision was postponed after consultations with the government. In the end, no solution was found: the subsidiary intends to stop production by the end of January. This threatens to affect 3,500 jobs, but the exact number is not yet fixed.
The announcement is a setback for the South African government, which is pursuing business-friendly policies and wants to boost the economy. ArcelorMittal points to continued high costs for logistics and energy, as well as cheap imports, especially from China.
New CEO
ArcelorMittal Belgium appointed a new CEO on 1 January, with Manfred Van Vlierberghe being succeeded by Frederik Van De Velde. Van Vlierberghe was committed to greening steel production in recent years. This resulted in a power purchase agreement with the federal government and a financing agreement with the Flemish government.
However, the biggest greening project - the replacement of one of Ghent's two blast furnaces with facilities running on natural gas and electricity - was put on hold by the steel group's leadership at the end of November. According to the company, that project, which carries a price tag of more than 2 billion euros, could not become profitable.
ArcelorMittal intends to take a final decision this year on greening projects in its European plants, including the one in the port of Ghent. Much depends, according to the group, on measures Europe will take to curb the cheap supply of steel from China.
#FlandersNewsService | Illustration © BELGA PHOTO KURT DESPLENTER
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