Company: MT
Filing Date: 2025-03-10
Form Type: 20-F
Source: 0001243429-25-000017
Chunk: 15

Company: ArcelorMittal
Filing Date: 2025-03-10
Form: 20-F
Chunk 15
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s Business would continue to operate to allow an opportunity for the short-, medium- and longer-term initiatives (aimed at securing its sustainability) to be fully explored. ArcelorMittal worked extensively with the South African government and stakeholders to explore alternatives for sustaining the

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| Management report |

Longs Business. While not seeking subsidies, ArcelorMittal South Africa requested policy support to address structural constraints affecting the steel sector. Despite extensive consultations with the South African government and stakeholders to find viable solutions to sustain the Longs Business, progress was insufficient and a decision was made to wind down the Longs Business. Such decision comes after sustained challenges, including weak economic growth, high logistics and energy costs, and an influx of low-cost steel imports, particularly from China, combined with insufficient policy interventions (especially longstanding policy decisions (namely, the Price Preference System (PPS) and Export Scrap tax) relating to the substantial subsidization of scrap-based steelmaking operations to the detriment of the Newcastle Works – which benefits South African-sourced raw materials). On January 6, 2025, ArcelorMittal South Africa announced that it will transition the Longs Business into care and maintenance subject to a consultation process. The persistent overcapacity in the global and local markets, and unsustainably low international steel prices have further exacerbated the business’ structural difficulties. Asset utilization in the Longs Business reached only 50% as weak market conditions necessitated the operation of its blast furnace at the lowest level technically and responsibly possible. It is expected that approximately 3,500 direct and indirect jobs will be affected . Steel production was anticipated to cease by late January 2025, with the wind-down of the remaining production processes completed in the first quarter of 2025 but the wind-down was postponed for one additional month as discussions continued regarding potential governmental support. On February 28, 2025, ArcerlorMittal South Africa announced that it will implement the final wind down of the Longs Business. It is envisaged that the shutdown of the blast furnaces will commence in the first week of March, with the last steel produced in late-March or early-April 2025. The final wind down into care and maintenance will be fully implemented in the second quarter of 2025. • On August 6, 2024, ArcelorMittal completed the acquisition of 65,243,206 shares, representing approximately 28.4% non-controlling equity interest in Vallourec, for €14.64 per share from