SA steelmaker Evraz Highveld halts operations

South Africa’s second-largest steelmaker Evraz Highveld Steel and Vanadium confirmed on Monday that it had temporarily ceased steel production at its steelworks, citing working capital constraints and reduced domestic demand mainly owing to a “significant” increase in steel imports from China.

The group said in a statement that it was currently communicating with its employees, adding that it intended to resume production once adequate funding had been secured and steel trading conditions had improved to ensure the company’s sustained future financial viability.

The decision to halt production at the company’s ironmaking division was brought about by delayed debtors payments; inadequate cash to procure the required raw materials to continue with manufacturing operations; difficulties experienced with access to funding; and a continued inability to pay major creditors timeously, it outlined.

The company added that the feeding of raw materials into the ironmaking kilns had been halted to enable the furnaces to be safely drained and switched out, ready for a future start-up. “The steel plant will be stopped and made safe once all the hot metal has been processed. The two mills will continue operating until all the available stocks have been rolled into saleable products, whereafter these operations will also be safely stopped.

“All plant and equipment will, for the moment, be placed on care and maintenance and prepared for future start up,” it held.

South Africa’s largest steel producer ArcelorMittal South Africa (AMSA) had also recently spoken out about the difficult conditions facing local steel producers, with AMSA CEO Paul O’Flaherty last week confirming that the industry was seeking greater protection from steel imports through the implementation of a 10% ad valorem duty on such imports.


  • Rooikop

    This is very bad news. Firstly how is it possible that imported steel from China, made from ore exported from ZA or Aus, is cheaper than steel made here? This has been the case for a long time. Steel from the east, even though it travelled a long way is still cheaper than what we are able to produce here. Labour is but a small part of the cost. (Overheads???)
    Secondly it means that our economy is really slow – I speak to a lot of people in business – this seems to be the case all over the country.

    • Krokodil.

      Good points, I wanted to raise some of the same.