Embattled ArcelorMittal South Africa welcomes steel tariff review process

ARCELORMITTAL South Africa (AMSA), which is in dire financial straits, has welcomed the International Trade Administration Commission (ITAC) review of the steel industry tariff review.

- NICOLA MAWSON

The ITAC review could be a lifeline for the company if additional import tariffs are imposed. AMSA, which has been in existence since 1928 having started out as government-owned Iscor, is in favour of localisation and domestic supply.

The struggling producer in Sub-Saharan Africa announced late last year that it was looking into closing its long steel business in Newcastle and Vereeniging. This placed about 3,000 people at risk of losing their jobs and spurred government to help the company out.

So far government has extended some R1.8 billion to partially bail the company out on condition that AMSA participate in the Protective SA turnaround and recovery programme.

The Government Gazette announced, meant the ITAC review, published on March 19, the same day that the Trade, Industry and Competition Department announced its partial bail out, said that the investigation is prompted by current economic and trade challenges.

Among these, it said, was the global steel production overcapacity, increased trade protectionist measures by some countries, slow economic growth, and energy and freight cost challenges. The review will investigate aspects such as import tariffs.