South African steel industry may become extinct
The South African steel industry may become extinct if it is not protected by the government against a flood of Chinese imports, according to leading NRI billionaire Lakshmi Mittals steel unit in the country. Wim de Klerk, CEO of ArcelorMittal South Africa (AMSA), said if the countrys biggest steel maker does not get a 10 per cent basic tariff protection from a flood of mainly Chinese cheaper steel imports, the South African steel industry is likely to become extinct. Wim, who spearheaded moves in recent months to ease tensions between the company and the government, said AMSA was set to make a huge loss for the six months ending December. This would follow on a huge loss of South African Rand 8.6 billion in the previous year for the company which produces 75 per cent of the countrys steel. The company is bidding to reopen the structural steel mill that was shut down by South Africas second largest producer Evraz Highveld Steel and Vanadium which went into business rescue amid the global steel crisis of the last few years. Concerns over AMSA then getting an even larger monopoly in the steel industry if the had gone through have been allayed by developments at the company since Wim took over the reins earlier this year.
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