Mittal fighting to save jobs and SA steel industry
Organised business in the Vaal warmly welcomed efforts to prevent job losses, with both the Golden Triangle Chamber of Commerce (GTCoC) and Vaal Business Cooperation (VBC ) describing the fight to save jobs as “most encouraging”.
Steel giant ArcelorMittal SA is waging an intense multi-level campaign “at the highest level” to save 3 500 jobs and its long steel business, but also to prevent the SA Government from extending its disastrous scrap metal export ban currently under review.
These discussions are believed to be at an extremely “delicate” stage, Amsa has confirmed.
All eyes are on Amsa this week, with its year-end financial results expected to be announced on February 8, where the company will provide an update on its engagement efforts.
High level Government sources also indicated that the Presidency is included in Amsa’s efforts, which also seeks to unlock greater infrastructure spending by Government which will directly benefit the ailing and shrinking steel and engineering sector in South Africa.
At least 220 formal jobs and an undisclosed number of contractor positions are under threat in the Vaal alone at Amsa’s Vereeniging long steel facility – but the greatest number of job losses if implemented will be at its Newcastle site in KwaZulu Natal (KZN).
Asked what it was doing to save jobs, Amsa said:
“Intense discussions, meetings and engagements are ongoing with all stakeholders at the highest level and are at a very delicate stage.
“We will update everyone once we are certain and there is more clarity after our financial results on 8 February,” Tami Didiza, Amsa Senior Manager: Communication and Stakeholder Engagement, said early this week.
And with an announcement expected within weeks on the date for the 2024 general election, it seems as if Government is this time listening intently, also to a wide spectrum of industries, including the copper sector, vociferously opposed to any extension of the ban.
An announcement is expected soon on its final decision on a policy which has skewed the steel economic sector and has resulted in sky-rocketing copper theft.
Amsa said in November 2023 it had no choice but to close down its Newcastle and Vereeniging long steel operations and singled out the scrap metal export ban as a major factor in present “steel winter”globally and in South Africa.
The company was also critical of the fact that Government’s infrastructure and industrialisation spending had not resulted in an improvement in the demand for steel locally.
