Major steel producer applies for import protection

Steel producer ArcelorMittal South Africa has warned that it may be forced to downscale production or close one of its operations unless the government imposes tariff duties against cheap Chinese steel imports.

Reuters news agency cited the company’s CEO, Paul O'Flaherty, as saying that South Africa's high labour costs, poor rail infrastructure and slowing economy had forced it to consider cutting back operations and jobs.

He said ArcelorMittal had applied for tariff protection of between 10 and 15% and that the government had appeared "sympathetic" to the request.

"The announcement of a potential closure of Vereeniging is not putting a gun to anybody's head, it is not a statement, it's a reality of business," O'Flaherty reportedly said.