The Business Times section of Sunday Times over the weekend reported that ArcelorMittal Outoing Chief Executive Officer, Paul O’Flaherty had revealed that Sadanha was being put under review. He disclosed that Sadanha had cost ArcelorMittal R3.6 billion in 2015.
With no credible buyer in sight, the indefinite closure of the unit is a matter of when, not if.
The closure of Sadanha would have economic ripple effects, with 1000 jobs likely to be lost. In addition, it would be a tragic cost of government’s pet project, which was financed by the Industrial Development Corporation.
Not even the Department of Trade and Industry’s introduction of a 10% on cheap steel imports has done nothing little to alleviate steel sector’s woes.