Scores of workers in South Africa picketed at steel giant ArcelorMittal's plant in the town of Saldanha on Thursday demanding a halt in plans to close the operation which would see 900 jobs lost.

ArcelorMittal announced early this month that it would wind down the plant, 175 kilometres (110 miles) north of Cape Town, because it was no longer viable on the export market.

The plant has "incurred substantial losses in the past," said the company, adding that the "medium-term outlook remain bleak".

But closing down the operation will mean extensive job losses in the small West Coast town of around 28,000 people, which is heavily dependent on the plant.

Saldanha became operational in 1998 and employs 400 fulltime staff and 500 contract workers.