ArcelorMittal announced that it will close two steel manufacturing plants and a rail production plant in South Africa. Due to the low steel prices in the international market, weak demand for long products in the local market, and excess steel production capacity around the world, related business operations are difficult.

The decision to close the plant, which covers steel wire, steel beams, steel bars used in reinforced concrete, and railway tracks used in construction and public works, is expected to affect around 3,500 direct and indirect jobs.

At the same time, its subsidiary AMRAS rail production business will also cease operations, while the coke production business in Newcastle will reduce its production scale to cope with weak market demand.

The National Union of Metalworkers of South Africa called on the government to step in to avoid larger economic losses as the closure of these factories could have catastrophic effects on the national industries.