ArcelorMittal: Delay at furnace hurts share price

AFRICA’S biggest steel maker ArcelorMittal South Africa (Amsa) declined 3.46 percent on the JSE yesterday to R31 after informing shareholders that the commissioning of a furnace at its Newcastle Works has been delayed. Amsa said the Newcastle Works had experienced delays in commissioning of the blast furnace, after the major maintenance project was completed last month. “Efforts are under way to restart the furnace. While we regret the delay and the inconvenience it has caused, we are engaging with our customers to ascertain their immediate needs,” the company said. It remains confident that the contingency plans will ensure delivery to most customers throughout December. The Newcastle Works reline is aimed at increasing domestic capacity by increasing steel production to 1.9 million tons a year from 1.7 million. – Dineo Faku