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Evraz deal may lift struggling metals sector in South Africa -The 18th China(Guangzhou)Int’l Metal &Metallurgy
Exhibition
1/5/2017 steel expo-metal &metallurgy expo |
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Business Live reported that ArcelorMittal SA’s announcement just before Christmas that it had concluded a contract manufacturing agreement with the defunct Evraz Highveld Steel & Vanadium group in Emalahleni was the sour cherry on top of a dismal year for SA.
ArcelorMittal SA CEO Wim de Klerk said "Long-term sustainability for the sector means ensuring the continued supply of product to our customers and the downstream industry, job preservation and strengthening the local industry. We are confident that, with this agreement, we are able to achieve all three.”
Russian-backed Evraz Highveld is in a protracted business rescue process that will ultimately lead to it being sold off in chunks as it is wound down. It will now through its subsidiary Highveld Structural Mill process blooms and slabs supplied by ArcelorMittal into heavy structural steel. The steel is to be used in large infrastructure projects and construction works such as shopping malls.
The deal between what was once SA’s second-largest steel producer and the industry’s remaining monopoly player, ArcelorMittal SA, a subsidiary of the global ArcelorMittal group, is still subject to certain conditions precedent. But once in effect, it will result in the reopening of Evraz Highveld’s heavy section mill by the business rescue practitioners.
-The
18th China(Guangzhou)Int’l Metal &Metallurgy Exhibition
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