ArcelorMittal South Africa to raise USD250 million via credit

Essar Steel

ArcelorMittal South Africa said it is looking to raise at least ZAR3.5 billion as credit facility to shore up its working capital.

The amount is approximately USD250 million using real time Forex rate.

According to Reuters News Agency, the borrowing-based credit facility depends on the value of collateral a company pledges.

ArcelorMittal South Africa has been struggling to make a profit due to weak demand, cheap imports and rising costs.

Headquartered in Vanderbijlpark, Gauteng, ArcelorMittal South Africa is the largest steel producer on the African continent., with a production capacity, in a normal year, of 7 million tonnes of liquid steel per annum , after taking into account various yield factors, amounts to approximately 4.8 million tonnes of saleable steel products.

The company supplies over 61% of the steel used in South Africa and exports the rest to sub-Saharan Africa and elsewhere.