ArcelorMittal South Africa, the largest steelmaker in South Africa, announced on November 11 that it has decided to halt steel operations at its Saldanha Works, with a capacity of 1.2 million mt per year and 568 employees, for care and maintenance works which are planned to be completed in the first quarter of 2020. “Contractual domestic sales orders from Saldanha will now be fulfilled from the Vanderbijlpark Works,” said ArcelorMittal South Africa.
The company’s decision came after the completion of the first phase of a review made by the board of ArcelorMittal South Africa, to evaluate the operational and financial sustainability of its major sites, including Saldanha.
According to the company statement, Saldanha “has lost its structural competitive cost advantage to effectively compete in the export market” due to high raw material prices and lower steel selling prices, and is facing severe financial losses, which are expected to continue in the foreseeable future.
Meanwhile, ArcelorMittal USA is reportedly planning to idle its blast furnace No. 3 at its Indiana Harbor site temporarily, according to media reports. With the blast furnace idled, Indiana Harbor has two remaining blast furnaces in operation.