Fin24 reports that the Department of Trade, Industry and Competition (DTIC) announced on Sunday that two parties had come forward with an interest to buy ArcelorMittal SA’s (Amsa’s) Saldanha operations.
The steel producer indicated in November that it planned to wind down operations at the works, which had lost its "structural competitive cost advantage" to allow it to effectively compete in the export market. Furthermore, it said the plant was suffering "severe financial losses" that were 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 almost 1,000 workers lose their jobs. On Sunday, the ministry said it had engaged with Amsa to indicate that potential buyers were considering making a bid for the steel plant. It commented: “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.” The ministry called on Amsa to consider every effort to retain employment in Saldanha, including giving consideration to potential bids by other investors. The DTIC noted that government had, over the past few years, supported Amsa with tariff protection from imports, including safeguard duties and the designation of steel for state infrastructure projects.
- Read the full original of the report in the above regard at Fin24
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