ArcelorMittal plans to resume production at Highveld Steel and Vanadium Corporation
Division of ArcelorMittal are almost all over the world, South Africa is no exception. Now the interests of AMSA coincide with the intentions of the industrial development Corporation of South Africa. Discusses the possibility of resuming production processes at the plant, previously owned by Evraz. The company Highveld Steel and Vanadium Corporation is located in the Gauteng province. The plant was deconsolidated Evraz in April last year. After that, numerous attempts were made to sell the asset to foreign investors. Now the possibilities for the acquisition and delivery of slabs, billets. Launch temporarily stopped production will continue the production of steel construction rental.
ArcelorMittal, along with the Corporation hopes on the success of the negotiations. They will resume production of large variety of products in the enterprise. It will be able to supply the South African consumer use of structural steel. It is possible that the acquisition of the plant will be postponed for 2017. However, AMSA are interested not just run of the mill. In the first half of this year, the division remained without profit. The loss exceeds even the same results in 2015. Representatives of the Department say about the need to strengthen the protection of the domestic steel market. They urge the authorities in South Africa to resist the influx of cheap Chinese products. According AMSA the cost of import from China less than the value of products of national metallurgy on the quarter.
In South Africa Highveld Steel and Vanadium Corporation second production capacities of the enterprise. In 2015, the steel plant was protected from bankruptcy. Difficult situation on the background of a sharp decline in demand for products. Influenced by the increase in imported volumes. The contract for the procurement of the workpiece will improve the income of AMSA. As the results of the first half of the year, sales increased by 10%. They amounted to 2.2 million tons. Improvement is observed after the imposition of duties on certain imported products.
ArcelorMittal as a whole also increased its profit. In the second quarter of this year, the company’s net income amounted to 1.1 billion USD. Thus in I quarter there was a net loss of $ 416 million USD. In the second quarter of 2015, the profit amounted to 179 million USD. It was observed on the background of the conclusion in the US of the employment agreement. It has secured a record profit of 832 million USD. ArcelorMittal expects to save this amount. Be achieved the result will be at the expense of reducing salaries and bonuses to employees of subsidiaries in the United States.