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Johannesburg (Reuters) - ArcelorMittal South Africa said on Friday the country's government had approved a new pricing model for flat steel products aimed at bolstering its steel sector.
The steelmaker, a unit of ArcelorMittal was fined a record 1.5 billion rand ($114 million) in August for colluding to fix steel prices.
The government of Africa's most industrialised country formed a team six years ago to find ways to lower domestic steel prices after consumers complained about ArcelorMittal's prices.
The local price for flat steel products will be calculated on an import weighted basket price, ArcelorMittal said in a statement.
"This agreement and the commitment by government and the company will no doubt make a valuable contribution to the sustainability of the steel industry, and in particular, the downstream industry," ArcelorMittal said.
Local steelmakers have been battling to survive. They received some relief in 2015 when South Africa imposed a 10 percent tariff on imports.($1 = 13.1000 rand)
Reporting by Nqobile Dludla; editing by Jason Neely