ArcelorMittal South Africa seeks $170 million rescue package

ArcelorMittal South Africa is seeking a 3.1 billion-rand (approximately $170 million) rescue package from the Industrial Development Corp to prevent the closure of its long-steel plants in Vereeniging and Newcastle, which is scheduled for the second quarter. The shutdown could result in the loss of around 3,500 direct and indirect jobs. The company had originally planned to close the facilities in January but postponed this to fulfill existing orders. Ongoing rescue talks with the government have not been successful, and the operating environment has worsened due to high power and transportation costs as well as cheaper imports. AMSA is also requesting relaxed antitrust laws to facilitate mergers with smaller mills and is seeking lower electricity prices from Eskom Holdings. The government had previously provided 380 million rand to help sustain operations, and AMSA is applying for funds to cover affected workers' salaries.