By Staff Repoter
The Portfolio Committee on Employment and Labour has welcomed the government’s intervention and engagement with ArcelorMittal South Africa (AMSA) regarding the winding down of its long steel business, which could stop 3500 workers from being retrenched.
The Industrial Development Corporation and the Trade, Industry and Competition Department said this week that AMSA received R380 million in February 2025. This was in addition to the R1 billion working capital facility extended by the IDC in June 2024.
AMSA is facing several challenges related to weak demand, high energy and logistics costs, and competition from low-cost imports.
It wants to close its steel-making operations in Newcastle and Vereeniging.
The closures could lead to over 100,000 job losses due to knock-on effects in the manufacturing sector.
The committee received a briefing from the Department of Employment and Labour on Thursday.
It said on Friday it was appreciative of the cooperation between the departments of Employment and Labour and Trade, Industry and Competition and other role-players to secure the possible return of AMSA.
In a cautionary announcement to the market, AMSA said it was engaging with stakeholders to defer the wind down of the Longs Business.
It has warned through that without a deal on funding and related matters, the deferral is not feasible.
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