The axe has fallen on ArcelorMittal SAs Long Steel Division after more than a year of two major attempts by the company’s top management to save the estimated 3,500 contractor and full-time jobs affected by the decision.

ArcelorMittal SA said in a statement and Sens announcement this morning that the winding down of the various sites affected by the decision will take place going forward.

GTCoC President Jaco Verwey commended ArcelorMittal SA CEO Kobus Verster for delaying and seeking alternative remedies to the shuttering of the long steel plants in the interests of employees and contractors for so long – and ensuring that those affected could at least celebrate the past Festive Season.

Verwey said the primary but not only reason for the close-downs was the lack of political will to save the South African steel industry – largely focused in the Vaal – in the midst of a clear crisis of de-industrialisation in South Africa.

Up to 200 permanent jobs and many more contractor jobs will be affected in the Vaal Triangle alone – largely concentrated in Vereeniging.

However, the shuttering will almost completely close down ArcelorMittal’s Newcastle Works in KwaZulu-Natal leading to devastating impacts on the town’s economic fortunes and thousands of job losses.

CEO Kobus Verster and his top management team are devastated by the decision, which they delayed twice in less than a year to find alternatives and to soften the blow on communities, company sources told Vaalweekblad.

Going forward, ArcelorMittal SA said in a statement it would in future focus on innovation and sustainability as business strategies.

Reasons given for the long steel shuttering were declining revenue, low international steel prices, and steel exports declining by up to 40%.