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2 Parties Show Interest to buy Saldanha Steelworks of ArcelorMittal

Steel News - Published on Mon, 02 Dec 2019

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Fin24 reported that Department of Trade, Industry and Competition announced that 2 parties have come forward with an interest to buy ArcelorMittal South Africa's Saldanha operations. DTIC said “We are encouraged by these early expressions of interest in Saldanha Steel. Saldanha Steel plays an important role in South Africa’s industrial footprint. For the Saldanha region specifically, the steel works is an important source of employment and development as well.”

It called on AMSA to consider every effort to retain employment in Saldanha, including giving consideration to potential bids by other investors. It said "If AMSA is still intent on closing Saldanha Steel, a decision we do not agree with, then nonetheless we urge the company to engage actively and openly with potential buyers, and to offer them terms that would enable operations at the steel-mill and employment opportunities to the local community.”

ArcelorMittal South Africa said in November it plans to wind down operations, which had lost its structural competitive cost advantage to allow it to effectively compete in the export market. It said the plant is suffering severe financial losses that are expected to continue in the foreseeable future. At the time, it noted that the winding down process, expected to be completed by the first quarter of 2020, could see it shed almost 1000 workers.

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Posted By : Rabi Wangkhem on Mon, 02 Dec 2019
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