ArcelorMittal update on South Africa’s long steel business
In terms of its recent announcements, ArcelorMittal South Africa previously announced that during the six- month deferral period ending on 30 September 2025, the Company has been exploring various strategic options while the IDC has simultaneously been conducting its due diligence into the Company and the Government has been pursuing structural interventions. Significant effort has been given to this exercise, which remains ongoing.
It was also stated in the SENS announcement released on 14 July 2025 that the Longs
Business will only be able to continue with financial support as the Company does not have the ability to bear any further financial risk associated with its continued operations after the Deferral Period.
Therefore, unless a solution is implemented timeously, and to ensure the orderly closure of the Longs Business as soon as possible after the Deferral Period, ArcelorMittal South Africa may have no option but to take certain operational steps to prepare for the wind down process well in advance of 30 September 2025.
Unfortunately, despite the hard work put in by management, the IDC, Government and other stakeholders, a solution has not been implemented. Further, funding to operate the Longs Business beyond 30 September 2025 has not been obtained.
In the circumstances, the Newcastle blast furnace has been placed into temporary care and maintenance and the Company must now take further preparatory steps towards the potential closure of the Longs Business, including communication with employees. At the appropriate time, and to the extent required, the relevant notices in terms of the Labour Relations Act may need to be issued.
Notwithstanding, the Longs Business will continue trading until shortly after the Deferral Period. The Flats Business, on the other hand, remains operational and available to meet customer requirements.
The IDC due diligence process has not been concluded and remains ongoing. Accordingly, shareholders are advised to continue to exercise caution when dealing in the Company’s securities until a further announcement is made.
ArcelorMittal South Africa promised to provide further updates on this process as may be required.
