EVRAZ Highveld Steel confirmed on Monday that it had temporarily ceased production of steel at its steelworks in Mpumalanga.
It said the decision was "primarily as a result of working capital constraints and reduced domestic demand in steel mainly due to a significant increase in Chinese imports".
"We are currently communicating with our employees and it is our intention to resume production once adequate funding has been secured and steel trading conditions have improved to ensure sustained future financial viability‚" Evraz said.
Shares in SA’s second-largest steel maker were suspended last month after the Russia-backed group said it did not have "adequate funding" to meet its short-term obligations and that it had voluntarily entered into business rescue.
Evraz plc is a multinational, vertically integrated (a strategy used by a company to gain control over its suppliers or distributors) steel making and mining company headquartered in London.
It has operations in Russia‚ Ukraine‚ Kazakhstan‚ Italy‚ Czech Republic‚ the US‚ Canada and SA.
Source: bdlive.co.za
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