The South African government plans a 500 million rand investment in ArcelorMittal South Africa to support key steel mills, covering salaries and increasing stake in the company. The move aims to boost the economy through infrastructure projects vital for the automotive and mining industries.
The South African government is set to invest 500 million rand (approximately $28 million) into ArcelorMittal South Africa Ltd., supporting key steel mills essential to the national economy. This funding aims to cover workers’ salaries for six to eight months while also providing additional financing through the state-owned Industrial Development Corporation (IDC), which plans to increase its stake from the current 8.2%.
Moreover, the government seeks to engage ArcelorMittal South Africa Ltd. (AMSA) in proposals for two steel mills located in Vereeniging and Newcastle. In early 2025, the IDC granted AMSA working capital to sustain its operations. Finalizing agreements for these long products factories is vital for the government’s strategy to rejuvenate the economy via large-scale infrastructure projects, which are critical for the automotive and mining sectors that contribute significantly to foreign exchange earnings.
ArcelorMittal S.A., headquartered in Luxembourg, is the second-largest metallurgical company globally, holding a 4% share of the market and operating in 18 countries across four continents, with its products available in 160 countries. ArcelorMittal South Africa, a subsidiary of this multinational corporation, is based in Johannesburg.
In conclusion, the South African government’s investment in ArcelorMittal South Africa underscores its commitment to sustaining essential steel production and invigorating the economy. The funding is pivotal not only for maintaining employment but also for facilitating large infrastructure projects which are crucial for vital economic sectors such as automotive and mining.
Original Source: www.akm.ru
