This news aggregator site highlights South African labour news from a wide range of internet and print sources. Each posting has a synopsis of the source article, together with a link or reference to the original. Postings cover the range of labour related matters from industrial relations to generalist human resources.
Bloomberg reports that the Industrial Development Corporation (IDC) is considering taking a majority stake in ArcelorMittal SA (Amsa) as it tries to halt the planned closure of two steel mills crucial to the nation’s manufacturing sector.
The IDC, which already holds 8.2% of Amsa, is willing to inject more capital into the struggling company in exchange for boosting its holding, according to sources familiar with the matter. The plans are at an early stage and not yet public. The IDC’s plan would include a later sale to strategic investors. Amsa said it had not yet received a bona-fide offer from any potential bidder that required communication with shareholders. The IDC declined to comment on the matter. The lender and SA’s trade and industry department have engaged in talks with Amsa since the company announced in January it would go ahead with previously shelved plans to close long steel mills in Newcastle and Vereeniging, costing about 3,500 jobs. The IDC, which paid Amsa more than R1.38-billion in support in June and February, may reportedly offer a little more money to temporarily keep the mills running while further talks take place. Meanwhile, Amsa has engaged Investec to sell “certain noncore and non-strategic land assets,” but not the Newcastle plant. Amsa’s announcement of its plan to close the steel plants has prompted a number of offers for the mills and the company, but none so far have been deemed credible enough to announce to shareholders, the producer said on 19 March.
- Read the full original of the report in the above regard at Engineering News
Get other news reports at the SA Labour News home page