The South African government plans to provide 500 million rand to ArcelorMittal South Africa to support key steel mills. This funding aims to sustain operations and secure jobs while also increasing IDC’s stake in AMSA. The initiative is crucial for economic recovery and infrastructure development, benefiting major sectors such as automotive and mining.
The South African government is set to fund ArcelorMittal South Africa Ltd. (AMSA), a local subsidiary of ArcelorMittal SA, to bolster critical steel mills essential for the national economy. Approximately 500 million rand ($28 million) will be allocated for employee salaries over the next six to eight months, along with interim financing from the state-owned Industrial Development Corporation (IDC), which will eventually increase its stake in AMSA from 8.2%.
Additionally, the government aims to encourage AMSA’s involvement in proposals for two steel mills located in Vereeniging and Newcastle, South Africa. Earlier in 2025, the IDC provided working capital to AMSA to ensure ongoing operations. Maintaining the functionality of long products factories is pivotal for the government’s strategy to stimulate economic growth through extensive infrastructure projects.
The automotive and mining sectors represent significant sources of foreign exchange earnings for South Africa, highlighting the importance of AMSA’s operations. ArcelorMittal S.A., headquartered in Luxembourg, ranks as the world’s second-largest metallurgical company, holding a 4% market share globally. It operates across 18 countries and sells its steel products in 160 nations.
ArcelorMittal South Africa serves as a subsidiary of the multinational corporation, with its headquarters situated in Johannesburg. This funding initiative reflects the government’s commitment to strengthen the steel industry, which is vital for supporting economic recovery and infrastructure expansion.
The funding initiative from the South African government to ArcelorMittal South Africa aims to stabilize the steel sector, essential for economic growth. The investment of 500 million rand will help maintain operations, safeguard jobs, and enhance infrastructure development, which is crucial for industries like automotive and mining. With IDC increasing its stake, this move signifies a strategic push for economic recovery through the steel industry.
Original Source: www.akm.ru
