Newcastle mayor calls for urgent talks amid AMSA steel business closure threat
Newcastle Mayor Xolani Dube has instructed the municipal manager to contact KZN Premier, Thami Ntuli, to convene an urgent meeting with ArcelorMittal South Africa (AMSA) and other stakeholders following the decision to wind down the company's longs steel business in the town.
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AMSA on Monday announced the closure that will affect Newcastle, Emalahleni and Vanderbijlpark.
Over 3500 jobs will be lost with Newcastle hit the hardest.
“This will be a significant hardship for local families, businesses, and the overall economy of the region and the Newcastle Municipality is deeply concerned over the closure, as many of the impacted employees are also consumers of municipal services,” the Newcastle Municipality Communications and Customer Relations Unit said in a statement.
With fewer employees able to afford basic services, the Municipality faces a considerable loss in revenue.
Additionally, the reduced disposable income will ripple through the local economy, affecting businesses that depend on the purchasing power of AMSA employees.
In light of these challenges, Mayor Dube is determined to find solutions to prevent job losses and preserve the steel industry in Newcastle.
He called on the provincial government and AMSA to work together and explore all available options.
“We are fully committed to supporting our local businesses and ensuring that Newcastle remains a viable and thriving town,” said Mayor Dube.
“We are working diligently to engage with all levels of government and industry to find a way forward that preserves jobs and protects the future of our community.
“The Municipality remains focused on creating a business-friendly environment to attract new investments and retain existing businesses, ensuring that the people of Newcastle have opportunities for long-term employment and economic stability.”
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