The restart of second blast furnace will, at the minimum, add around 600 000 tonnes of annual flat steel production in South Africa. The company accelerated the restart to December from the originally planned January 2021 in response to an increase in demand for steel in South Africa and the depleted steel inventories at all stages of the steel supply chain following the Covid-19 lockdowns.
The timely restart will provide the necessary supply of steel to the local industry in the context of a currently prevailing global steel shortage, with supply lead times running into late Q2-21 almost around the world. “With all three blast furnaces fully operational at our Newcastle and Vanderbijlpark plants, we expect that we will be more than able to meet the steel requirements in South Africa and neighbouring countries in the coming months,” says Kobus Verster, Chief Executive Officer of ArcelorMittal South Africa.
However, the company is mindful that the second wave of Covid-19 in South Africa could have an adverse impact on its production ability. ArcelorMittal South Africa continues to operate according to the strictest safety protocols to ensure the wellbeing of all its employees. The company also continues to engage with suppliers to ensure stable production and supply to the South African market.
