ArcelorMittal closes factories in South Africa

Steelmaker ArcelorMittal plans to close two plants and is considering operations at its largest plant in South Africa as the unprofitable divisions of the world's largest steel company cannot keep up with weak demand and low prices.

ArcelorMittal said in a statement that trading conditions continue to deteriorate, so the company began revising its steel business back in July, adding that higher South African import duties could only bring relief in the medium to long term.

The steel firm said it has begun negotiations with trade unions to close two of its factories, resulting in 400 job cuts at its Feriniching plant, about 60 kilometers south of Johannesburg. Stalevar has warned in the past that he could close the entire Feriniching plant, jeopardizing the existence of 1,200 jobs. Operations at the company's largest plant, located in the nearby industrial city of Vanderbijlpark, remain unprofitable and will be reviewed by the end of October, the report said.

“The company will first consider the alternative in detail before implementing layoffs, which will be implemented as a last resort,” the company said. South Africa last week imposed a 10 percent import tariff on steel imports, the maximum level allowed by the World Trade Organization.