REFURBISHMENT OF FACILITIES
SA steel maker in talks to raise loan
ArcelorMittal SA says it is in talks to borrow R3.5bn as part of a new capital-raising plan. This sum is apart from a recent R4.5bn rights issue by the country’s biggest steel maker. The group has not specified what the funds will be used for but has indicated it wants to refurbish existing facilities, including its Saldanha steel works in the Western Cape. This will include capital expenditure on plant and equipment to make production more environmentally friendly. The steel producer, which has plants across the country, lowered its net debt to R290m at the end of its financial year in December 2016 following the rights issue. "ArcelorMittal is in the process of raising funds via a borrowing-based facility to the value of R3.5bn as part of a capital-raising for the entire business," the company said on Thursday. Like many steel makers across the world, ArcelorMittal SA has been hit by cheap Chinese imports and rising costs. The company reported a record loss of R8.6bn in financial ...
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