Lakshmi Mittal, the Indian billionaire who built ArcelorMittal into the world’s largest steelmaker, is reconsidering his company’s involvement in South Africa’s struggling steel industry.
ArcelorMittal South Africa (AMSA) has reopened talks with the state-backed Industrial Development Corporation (IDC) to potentially sell its local steel unit, after earlier negotiations collapsed.
The discussions center around AMSA’s long-steel plants in Newcastle and Vereeniging, which produce essential materials for construction, mining, and manufacturing.
However, the facilities have been struggling due to weak demand, high electricity costs, and competition from scrap-based mini-mills and imports.
The IDC, which holds an 8.2% stake in AMSA, has provided significant financial support, totaling about 2.6 billion rand ($161 million), to keep the business afloat.
A potential deal could see the IDC take over AMSA, but no agreement is certain.
