08:26 AM EST, 01/16/2025 (MT Newswires) -- ArcelorMittal ( MT ) and South Africa's Trade Minister Parks Tau have been asked by Volkswagen and Toyota ( TM ) to defer planned steel mill closures in the country, Bloomberg reported Thursday, citing letters from industry associations.

Industry groups representing the carmakers said the mill closures could cause plant shutdowns and result in job losses. The carmakers say they need at least a year to secure other steel supplies.

ArcelorMittal ( MT ) intends to shut down steel mills in Newcastle, Vereeniging, and eMalahleni due to unprofitability, amid high costs, poor rail service, and low-cost imports, Bloomberg reported, citing the company.

The National Association of Automotive Component and Allied Manufacturers Chief Executive Officer Renai Moothilal said steel imports could be 25% more expensive, leading to 3,000 immediate job losses and potentially 13,000 more in the future, according to the report.

ArcelorMittal ( MT ), Toyota ( TM ), and Volkswagen did not immediately respond to MT Newswires' request for comment.

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