SEIFSA estimated that the ArcelorMittal closure will cause a staggering 293 754 direct and indirect job losses and not only the 3 500 direct losses.

Around 3,500 jobs will be affected after weak economic conditions, high costs and Chinese steel imports weighed on the company.

ArcelorMittal to close long-steel business in South Africa, citing losses from economic conditions, high costs and Chinese steel imports.

Steel producer ArcelorMittal South Africa's shares fell more than 15% on Monday after the company said it would proceed with the closure of its loss-making long steel business.

ArcelorMittal South Africa, a unit of steel manufacturing company ArcelorMittal (NYSE:MT) has made a major restructuring decision to wind down its Longs Business, having significant consequences on its workforce.

The steel industry is critical in the reconstruction and recovery plan for the South African economy, particularly, the manufacturing, mining, construction, engineering, and transportation sectors, said the Department of Trade,

The company said steel production will likely cease by the end of the month and it has yet to determine the final number of job losses.

ArcelorMittal South Africa Ltd. will close its business making long-steel products, after months of consultations with the government failed to stave off the threat to thousands of jobs.Most Read from BloombergIs This Weird Dome the Future of Watching Sports?

ArcelorMittal’s MT division, ArcelorMittal South Africa, has decided to wind down its Longs Business after facing continuous challenges like weak economic growth, high logistics and energy costs, and an influx of low-cost steel imports from China.