Struggling ArcelorMittal raises R3.5 billion

ArcelorMittal South Africa is in discussions to borrow R3.5 billion as part of a capital raising plan, though it has not specified what the funds will be used for.

ArcelorMittal has been hurt by cheap Chinese imports and rising costs, as have many other steelmakers around the world, and has not made an annual profit since 2010. The company has pledged to limit job cuts, increase black ownership and invest in supply in return for the government increasing tariffs on imports and committing to buying local steel in infrastructure projects.

According to Bloomberg, the Vanderbijlpark-based steelmaker lowered its net debt to R290 million at the end of 2016, after raising R4.5 billion in a rights issue.

Pictured: Dean Subramanian, ArcelorMittal CFO