Weak steel demand forces AMSA to run upgraded Newcastle mill below capacity

Steel producer ArcelorMittal South Africa (AMSA), which recently completed the R2-billion reline of the blast furnace at the Newcastle mill, has decided not to immediately ramp up the plant to its expanded 1.9-million-tonne-a-year nameplate capacity, owing to weak domestic market conditions. Speaking during a tour of the upgraded KwaZulu-Natal facility CEO Paul O'Flaherty said that, while the JSE-listed group’s ‘fill the mills’ strategy remained largely intact and was helping to lower costs, particularly at its Vanderbijlpark operation, it would be “financial suicide” for Newcastle to pursue the strategy in the current environment.