ArcelorMittal meets with ELM on plant closure
As the ArcelorMittal SA plant closure crisis deepens - and fury grows at the lack of political will to prevent it - the steel giant convened an urgent meeting with Emfuleni’s Executive Mayor today (Wednesday) on local Government impacts, including potentially huge revenue losses.
At time of publication, the meeting had just started and no details were made available by either party but top of mind for Executive Mayor Sipho Radebe will be massive electricity and water revenue losses after the Vereeniging Long Steel Plant closure takes place in 2025.
According to sources, ArcelorMittal’s COO would meet EM Radebe to discuss all aspects of the crisis as well as mitigation plans in Sedibeng, already Gauteng’s most impoverished region due to accelerating industrialisation throughout South Africa.
A similar process is also taking place with Newcastle Municipality.
The Vaal and Newcastle communities and business were flung into anguish after ArcelorMittal announced on Monday that its long steel plants in Vereeniging and Newcastle in KwaZulu-Natal would be shuttered in 2025 with potential job losses of about 3 500.
About 200 full-time and an undisclosed number thought to be many times that for contractors will be laid off in Vereeniging.
Fears are growing that this will lead to potentially devastating reductions in ELM revenues from water and electricity – and possibly vast increases in power theft as workers are laid off and cannot pay their municipal bills.
Both plants are Large Power Users in their municipalities and together with the loss of so many jobs and contractor positions, will have a major knock-on effect down the economic chain.
