ArcelorMittal winds down Longs Business

ArcelorMittal has taken the decision to wind down its Longs Business in light of sustained challenges

According to the company, issues around weak economy growth, high logistics and energy costs and an influx of low-cost steel imports (particularly from China) have left the Longs Business unsustainable. As a result, despite long consultations with government and stakeholders to find viable solutions to maintain the business, the decision was made to transition the Longs Business into care and maintenance. As such, steel production is anticipated to cease by late January 2025 with the remaining production processes to be wound down in Q1 2025.

“It is with deep regret that we must take this difficult decision,” said CEO Kobus Verster. “Over the past year, our employees and dedicated management team have shown remarkable commitment and resilience in the face of serious uncertainty. Unfortunately, despite everyone's best efforts, including significant engagement with stakeholders, the structural challenges in the Longs Business were not resolved. While this outcome is deeply disappointing, especially given the economic challenges facing South Africa, we remain focused on securing a sustainable future for the remaining operations.”

The company has estimated that approximately 3,500 direct and indirect jobs will be affected by this change with a broader economic effect on induced jobs.

Despite this setback, Verster made clear the company’s commitment to long-term sustainability and competitiveness, with a focus on improving the Flats Business. ArcelorMittal South Africa will focus on re-establishing itself as a champion of innovative, export-driven, steel-based industrialisation for South Africa, sub-Saharan Africa, and other key geographies.