Latest news with #ArcelorMittalSA
Daily Maverick
3 days ago
- Business
- Daily Maverick
ArcelorMittal responds, says the mini-mill dream could melt down
ArcelorMittal SA has come out swinging against a recent Daily Maverick article that it says turned the national debate into a scrapyard brawl in favour of mini-mills and scrap metal traders. In a sharply worded statement, ArcelorMittal South Africa (Amsa) claims Daily Maverick 'misrepresents the complex reality of South Africa's steel sector' and unfairly promotes 'a misleading narrative in favour of mini-mills and scrap metal traders, particularly those who benefit from importing cheap finished steel.' The company argues that the journalist (me) presents mini-mills as a silver bullet and 'masks the vested interests of a small cohort of import-reliant firms', adding that the idea these facilities can simply replace integrated production is 'economically and technically untenable'. Cool. Amsa's voice is strained by its terminal injuries — it's long steel business – slated for mothballing come the end of September 2025 – and a policy environment the company says leaves it no choice but to start winding down. Depending on who you ask, the problem is either a failed state, a flawed business model, or both. Long steel's long goodbye Amsa has confirmed that unless a last-minute industrial miracle occurs, it will shutter its loss-making long steel operations at Newcastle Works, Vereeniging Works, and its rail-focused subsidiary. The company says it has exhausted the R1.68-billion bailout from the Industrial Development Corporation (IDC) and 'cannot assume any further financial risks related to the Long Steel Business beyond the next few months.' The closure directly threatens 3,500 jobs. But according to Elias Monage, president of the Steel and Engineering Industries Federation of Southern Africa (Seifsa), the ripple effects could be catastrophic: 'The signs of collapse are unmistakable. This is not just about a single mill – it is about an entire industrial ecosystem at risk.' Monage's message is no longer merely a plea for urgent intervention. In a June statement, he called for a full-scale reset: 'South Africa's steel and engineering sector stands at a perilous crossroads. Years of deindustrialisation, declining production, job losses and a steady erosion of competitiveness have brought us here. This decline is not the result of chance, but a culmination of systemic policy failures, a lack of coordinated action and inadequate implementation of recovery frameworks.' Dance if you want to dance Monage once championed the Steel Master Plan as a roadmap for reindustrialisation. Now he concedes the plan has 'not lived up to its potential'. Instead of decisive action, he describes a 'diffusion and inaction' that left industry leaders disillusioned. 'The Steel Master Plan had over 20 workstreams and 73 deliverables, but it lacked focus. Progress stalled, and as it did, industry leadership began to withdraw,' Monage says. The hard stats back him up: steel production remains 18% below its 2007/8 peak, capacity utilisation has slipped below efficiency benchmarks, and per capita steel consumption has dropped by 37% since 2013 – all while global steel intensity rises. Monage argues that South Africa needs a new 'strategic agreement for impact,' a compact that binds government and industry to shared, measurable objectives like achieving 4-5% annual growth in metals and engineering output. 'Business as usual will not suffice,' he warns. 'This moment demands a bold shift – from fragmented policies and siloed departments to a unified national compact anchored in public-private collaboration.' Let's play the blame game National Employers' Association of South Africa (Neasa) CEO Gerhard Papenfus has long argued that Amsa's woes are self-inflicted, a product of propping up an uncompetitive giant. But Amsa doesn't think the one-time, self-appointed envoy to Washington, DC, is arguing in good faith. 'Though Neasa does not publicly disclose its membership, multiple sources including Neasa press statements and trade forums highlight its strong representation of steel traders and re-rollers with minimal domestic productive capacity,' the company said. Amsa also countered that narrative directly. 'Mini-mills that can replace integrated primary steel production are economically and technically untenable,' the company insists. 'Mini-mills based on scrap cannot produce the full range of high-quality, flat and long products required by the automotive, mining, defence, renewable energy and construction sectors.' The core argument is that the Preferential Pricing System (PPS) and export restrictions have cost informal workers and recyclers R60-billion over a decade, while propping up a few scrap-based mills employing only 5,000 people. Government goes to the mat 'The PPS has not just failed; it has actively undermined the viability of integrated producers,' Amsa says. Worse still, it accuses mini-mills of gaming the system: 'Declining to purchase scrap at PPS-mandated discounts, only to subsequently call for tighter export controls to suppress prices further.' The Department of Trade, Industry and Competition (DTIC) has admitted it is in 'firefighting mode,' with Minister Parks Tau's working group scrambling to contain the fallout. But Monage is clear: 'Government must acknowledge that past interventions, however well-intentioned, have not delivered. Without leadership, clarity and decisive action, the socioeconomic consequences – more job losses, more factory closures, deeper erosion of capacity – will only deepen.' Meanwhile, globally… ArcelorMittal's global operations are booming. With Q1 2025 gross profit of $1.6-billion and strategic expansions in Liberia, India and the US, the global group is thriving while Amsa fights for its life. The South African story remains bleak: rail failures labelled 'the worst performance on record', soaring energy costs and shrinking domestic demand. Even with a smaller loss expected this month, Amsa warns that 'without immediate policy coherence', integrated plants like Newcastle and Vanderbijlpark could become relics. But Monage offers a final plea for collective ambition: 'No country can industrialise – or reindustrialise – without a resilient metals sector. Steel is the foundational input into mining, construction, transport, manufacturing, energy and agriculture. We must rescue the original intent of the Master Plan and build a future of inclusive, job-rich growth.' At stake is not just the survival of one steel mill or one company. It's the question of whether South Africa can once again build things. DM
The Citizen
4 days ago
- Business
- The Citizen
Uncertainty as Mittal Long Steel closure looms again
With South Africa's Government seemingly incapable of removing structural barriers destroying the domestic steel industry, ArcelorMittal SA has said it has no option but to again consider the early closure of its Long Steel divisions in Vereeniging and Newcastle. Currently, a 6-month closure deferral process is in place until September 30. However, the Company may need to make preparations for shuttering and closure beyond this date. This was despite ArcelorMittal SA receiving a R1.6 billion funding facility from the Industrial Development Corporation (IDC) to keep its long steel operations going whilst Government was supposed to address logistical, input costs such as electricity and other impediments to the steel industry from a structural perspective. 'Transnet's rail performance deteriorated to its lowest levels ever resulting in significantly elevated operating risk and unaffordable additional cost being borne by the Company,' says ArcelorMittal SA. Closure of the two long steel plants in Vereeniging and Newcastle will result in the loss of at least 3 500 permanent and contractor jobs in two economically depressed regions of South Africa's industrial and steel heartlands. In reaction, the Golden Triangle Chamber of Commerce (GTCoC) said any close-down would be the direct result of the Government of National Unity (GNU) failing to address policy and structural issues confronting the domestic steel industry. 'Financing on its own only leads to kicking the can down the road,' says GTCoC spokesperson Jaco Verwey. Acute uncertainty has now returned to steel communities in the Vaal and Newcastle following the announcement. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
TimesLIVE
4 days ago
- Business
- TimesLIVE
ArcelorMittal South Africa says little progress made to avert plant closure
Talks with government have so far yielded little progress to avert the closure of loss-making long steel operations at ArcelorMittal South Africa, the company said on Monday. The South African unit of the world number two steelmaker said in November 2023 it planned to close the two plants, citing weak domestic demand, high electricity tariffs, poor freight logistics and competition from local scrap metal recycling mini-mills and imports from China. "Regrettably, limited progress has been made to date in redressing the major structural impediments," ArcelorMittal SA said in a trading update. It said the closure could no longer be postponed beyond September 30 unless a solution is found soon. Trade and industry minister Parks Tau told lawmakers on July 4 government was in "firefighting mode" as it tries to avoid the closure of ArcelorMittal's operations in KwaZulu-Natal and near Johannesburg. The closure of the plants, which supply rail, roads and bars to the construction, mining and manufacturing sectors and components for the automotive industry, has been deferred twice as the company and government sought to save the 3,500 jobs directly under threat. In March, the steel company postponed the closures to September 30 after the state-owned Industrial Development Corporation injected R1.683bn in cash. Imports have flooded the domestic market, taking up more than 35% of local steel demand, while freight rail service "deteriorated to its lowest levels ever, resulting in significantly elevated operating risk", the steelmaker said. ArcelorMittal SA expects to report a headline loss per share between 89c 99c for the six months to June 30, narrowing its loss from R1 per share during the same period last year. Sales volumes declined by about 10% in the first half of 2025 compared to last year, the company said. ArcelorMittal SA will release its half-year financial results on July 31.
Hindustan Times
15-05-2025
- Business
- Hindustan Times
Billionaire Lakshmi Mittal said to buy ‘Beverly Hills of Dubai' home
(Bloomberg) -- Lakshmi Mittal, among Britain's richest residents, is the buyer of one of Dubai's priciest mansions, people familiar with the matter said. The India-born billionaire snapped up a palatial home in a gated community known as the 'Beverly Hills of Dubai,' said the people, who didn't want to be identified speaking publicly about the purchase, adding the home sold earlier this year. The Baroque style residence in the Emirates Hills community was listed for about $200 million in 2023 and is lavishly decorated with gold leaf, the selling agent said at the time. It sold for around half of the listing price, according to people familiar with the matter. Mittal is the executive chairman of steelmaking giant ArcelorMittal SA and has a net worth of more than $23 billion, according to the Bloomberg Billionaires Index. His purchase ranks among the priciest residential sales ever in Dubai, which has lured the uber-wealthy since the coronavirus pandemic and turned into one of the world's best-performing property markets. Indian billionaire Mukesh Ambani's family has also bought luxury real estate in the city, which is part of the United Arab Emirates. Property prices have surged around 70% over the past four years in Dubai and outpaced much of the world. The boom in the city's luxury market continued into the first quarter this year, with wealthy buyers again driving record sales of homes valued above $10 million. Mittal, 74, made the purchase as he joins other wealthy individuals exploring residency options outside the UK, spurred by a wave of tax reforms that have made the country a less attractive place for the global elite. Mittal has been considering leaving the UK in the fallout of the recent tax changes but no final decision has been made yet, according to a person familiar with the matter, who asked not to be identified as the details are private. Among the measures unsettling the UK's wealthy residents is the scrapping of its preferential tax regime for non-domiciled residents. Under that system, which dates back to 1799 and ended in April, so-called non-doms could avoid UK taxes on their overseas earnings for as long as 15 years. Other wealthy individuals who recently did decide to leave the UK include Egyptian billionaire Nassef Sawiris and Bart Becht, the former CEO of Reckitt Benckiser Group Plc, but any move by Mittal to quit the UK would be a particularly high-profile blow for the nation's business sector as Chancellor Rachel Reeves seeks to revive Britain's economy. Mittal's become a figurehead for Britain's community of billionaires hailing from overseas since he and his family relocated to the UK more than two decades ago. Along the way, he's been a focus of parliamentary debates on Britain's preferential tax regimes for wealthy foreigners after donating to the Labour Party under Tony Blair's leadership as his government reviewed the UK's non-dom regime. The steel firm he founded has also made him a prominent figure in Britain's strategic infrastructure, though ArcelorMittal warned the British government last year that one of its main divisions may be forced to leave the nation over plans to redevelop a southeast England port. Mittal's influence in Britain extends beyond business and politics too. He and his wife, Usha, have imported artworks, jewelry and wines to the UK over the past decade, according to public trade data, which still list the Mittals' Kensington home as their address. The family has also committed more than £20 million ($26.6 million) in recent years to healthcare and medical causes in the UK through their namesake foundation based in London, where they have an investment firm, LK Advisers, that helps to oversee their fortune from central Mayfair. A representative for the Mittals said there are no plans to relocate LK Advisers from London. --With assistance from Julius Domoney. (Updates with surge in property prices in the sixth paragraph.)
Time of India
15-05-2025
- Business
- Time of India
Lakshmi Mittal said to buy ‘Beverly Hills of Dubai' home
Lakshmi Mittal , among Britain's richest residents, is the buyer of one of Dubai's priciest mansions, people familiar with the matter said. The India-born billionaire snapped up a palatial home in a gated community known as the 'Beverly Hills of Dubai,' said the people, who didn't want to be identified speaking publicly about the purchase, adding the home sold earlier this year. The Baroque style residence in the Emirates Hills community was listed for about $200 million in 2023 and is lavishly decorated with gold leaf, the selling agent said at the time. It sold for around half of the listing price, according to people familiar with the matter. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas For Sale in Dubai Might Surprise You Villas In Dubai | Search Ads Get Rates Mittal is the executive chairman of steelmaking giant ArcelorMittal SA and has a net worth of more than $23 billion, according to the Bloomberg Billionaires Index. His purchase ranks among the priciest residential sales ever in Dubai, which has lured the uber-wealthy since the coronavirus pandemic and turned into one of the world's best-performing property markets. Indian billionaire Mukesh Ambani's family has also bought luxury real estate in the city, which is part of the United Arab Emirates. Live Events Property prices have surged around 70% over the past four years in Dubai and outpaced much of the world. The boom in the city's luxury market continued into the first quarter this year, with wealthy buyers again driving record sales of homes valued above $10 million. Mittal, 74, made the purchase as he joins other wealthy individuals exploring residency options outside the UK, spurred by a wave of tax reforms that have made the country a less attractive place for the global elite. Mittal has been considering leaving the UK in the fallout of the recent tax changes but no final decision has been made yet, according to a person familiar with the matter, who asked not to be identified as the details are private. Among the measures unsettling the UK's wealthy residents is the scrapping of its preferential tax regime for non-domiciled residents. Under that system, which dates back to 1799 and ended in April, so-called non-doms could avoid UK taxes on their overseas earnings for as long as 15 years. Other wealthy individuals who recently did decide to leave the UK include Egyptian billionaire Nassef Sawiris and Bart Becht, the former CEO of Reckitt Benckiser Group Plc, but any move by Mittal to quit the UK would be a particularly high-profile blow for the nation's business sector as Chancellor Rachel Reeves seeks to revive Britain's economy. Mittal's become a figurehead for Britain's community of billionaires hailing from overseas since he and his family relocated to the UK more than two decades ago. Along the way, he's been a focus of parliamentary debates on Britain's preferential tax regimes for wealthy foreigners after donating to the Labour Party under Tony Blair's leadership as his government reviewed the UK's non-dom regime. The steel firm he founded has also made him a prominent figure in Britain's strategic infrastructure, though ArcelorMittal warned the British government last year that one of its main divisions may be forced to leave the nation over plans to redevelop a southeast England port. Mittal's influence in Britain extends beyond business and politics too. He and his wife, Usha, have imported artworks, jewelry and wines to the UK over the past decade, according to public trade data, which still list the Mittals' Kensington home as their address. The family has also committed more than £20 million ($26.6 million) in recent years to healthcare and medical causes in the UK through their namesake foundation based in London, where they have an investment firm, LK Advisers, that helps to oversee their fortune from central Mayfair. A representative for the Mittals said there are no plans to relocate LK Advisers from London.
