Government still missing in action as ArcelorMittal plant closures loom
With less than a week to go before delayed plant closures kick in for steel giant ArcelorMittal SA at the end of February, there is no indication that the South African Government intends to intervene to prevent at least 3 500 job losses.
The lack of a Government plan to rescue the plants and jobs drew a sharp response from organised business in Emfuleni and the Vaal, which said the government lacked commitment to job creation and security.
The President of the Golden Triangle Chamber of Commerce (GTCoC), Jaco Verwey, this was exactly what he and organised business had expected of Government.
The closure of ArcelorMittal SA long steel plants in Vereeniging and Newcastle was delayed by a month – till end February 2025 – as talks with Government and other stakeholders apparently continued.
“This is what we expected and still shows the lack of interest from Government to assist large industries in SA and by doing that their lack of commitment to job security and creation,” said Verwey.
By Monday this week no announcement from Government was forthcoming on the intended plant closures – and with the winding down of the plants involved set to resume at February month-end.
ArcelorMittal SA spokesperson Tami Didiza told Vaalweekblad on Monday this week that he had no new update on talks with Government or any proposed Government plan.
This was after ArcelorMittal SA CEO Kobus Verster pointedly criticised the SA Government’s slow and insufficient response to the present steel industry survival crisis in South Africa.
Verster also shot down speculation that there was in fact a R1 billion rescue package negotiation under way with Government to save ArcelorMittal SA plant capacity and jobs.
But Verster added subsequently that the winding down process of the Vereeniging and Newcastle long steel plants had been delayed until end-February by the company in the midst of ongoing talks with Government and other stakeholders on the steel crisis.
One of the biggest issue confronting ArcelorMittal SA viability was the tide of cheap steel imports presently engulfing South Africa, especially from China – and the reason why the company demands that the SA Government raises import tariffs on steel.
Steel imports increased 9.4% to 1.4 million tons in 2024 and are expected to increase dramatically in 2025 unless action is taken by Government, the Company says.
About 60% of steel imports could be made locally, said ArcelorMittal SA.
