ArcelorMittal South Africa (AMSA) planned to close its long steel business, saying it has no choice but to begin winding down its long steel business, which is now likely to be placed on care and maintenance.

Over the past few years, AMSA has implemented various cost-saving initiatives from raw materials to production, but South Africa’s trading environment hasn't been improved.

AMSA made this decision after South Africa's low GDP growth led to a decline in South Africa's apparent steel consumption and soaring domestic shipping costs.

This decision will affect approximately 3,500 jobs. The affected factories include Newcastle Works, Vereeniging Works, and rolling mills using Newcastle materials as raw materials.