ArcelorMittal South Africa announced on Tuesday that it intends to shut down its extensive steel operations because of ongoing infrastructural issues and low demand, which might have an effect on 3,500 jobs.
The company's long-standing steel division manufactures rail, bars, and fencing for use in the manufacturing, mining, and construction industries. In addition, ArcelorMittal manufactures tubular, flat steel, and foundry goods.
The world's second-largest steelmaker, ArcelorMittal, warned that restricted infrastructure spending and project delays have caused a 20% decline in steel demand in Africa's most developed economy over the last seven years.
ArcelorMittal South Africa stated in a statement that the company had incurred additional expenditures as a result of ongoing rail logistical issues in South Africa and a worsening electrical crisis.
"In the circumstances, the ArcelorMittal South Africa Board and Management have had no option but to embark on a process that contemplates the wind down of the Company's Longs Business, which for now may be placed in care and maintenance," the company said.