Africa’s largest steel producer ArcelorMittal South Africa has suspended its decision to shut down its steel plants in KwaZulu-Natal, according to a report by Reuters.
The board of directors of the company will work on a plan to keep the long steel production for many sectors such as construction, mining and manufacturing operational, saving thousands of jobs.
Also, it was reported that issues in electricity generation and in rail logistics have improved, positively affecting the company’s decision.
ArcelorMittal South Africa had announced its plans late last year to close its long steel operations due to unfavorable market conditions, as SteelOrbis reported previously. Weak demand, limited infrastructure spending and project delays, resulting in overcapacity in the market, high transport and logistics costs as well as high energy prices and persistent rail logistics problems in the country had all contributed to the decision.