More than 3,000 steel jobs could be saved as AMSA, IDC resume talks
More than 3,000 employees could keep their jobs as AMSA engages in advanced discussions with the Industrial Development Corporation
Image: SUPPLIED
More than 3,000 employees could keep their jobs as AMSA engages in advanced discussions with the Industrial Development Corporation (IDC) and its parent company, ArcelorMittal Group, over a potential transaction.
IOL previously reported that Newcastle communities have raised major concerns about the possible closure of ArcelorMittal South Africa (Amsa) and its long steel business, putting thousands of jobs on the line.
At the time, Amsa said that the company had worked closely with the Industrial Development Corporation (IDC), government, and other stakeholders to explore every possible strategic option. No solution had been concluded.
Talks between AMSA, its Luxembourg-based parent ArcelorMittal Group, and the IDC collapsed late last year after the company rejected a previous R8.5 billion non-binding proposal, which included the repayment of R7 billion in debt to its parent company.
In an official further cautionary announcement on the JSE’s Stock Exchange News Service (SENS), ArcelorMittal confirmed it is engaged in advanced discussions with the IDC and its parent company, ArcelorMittal Group.
"ArcelorMittal South Africa, ArcelorMittal Group, and the IndustrialDevelopment Corporation SOC Limited are engaged in advanced discussions to find a sustainable solution based on a non-binding term sheet regarding a potential transaction," the company said.
ArcelorMittal South Africa added that the discussions are subject to definitive agreements and multiple approvals, and that there is no certainty that a transaction will be concluded.
"These discussions remain subject to definitive agreements and multiple approvals, and there is no certainty that the transaction will be concluded. Further announcements will be made in relation to these matters as and when appropriate"
mthobisi.nozulela@iol.co.za
IOL Business