ArcelorMittal South Africa (AMSA) said on Thursday its half-year loss widened by 47%, with the business weighed down by weak steel prices and an influx of steel imports, mainly from China.
The South African unit of global steelmaker ArcelorMittal posted a headline loss of R1.49-billion for the six months ended June 30, from a headline loss of R1.01-billion previously.
The company has been battling weak local demand, high electricity costs as well as competition from South African scrap metal recycling mini-mills and imports from China.
AMSA said talks with the State-owned Industrial Development Corporation (IDC) that could lead to a potential transaction continue, but declined to provide details on progress.
It has not disclosed whether the transaction involves a bailout package or an outright takeover.
