Business
South African Government Negotiates Rescue Package to Prevent ArcelorMittal Plant Closures

The South African government is working tirelessly to prevent the closure of ArcelorMittal South Africa (AMSA) plants, a move that could lead to the loss of 3,500 jobs and disrupt the country’s steel industry. Discussions between the Department of Trade, Industry and Competition and the Ministry of Finance are focused on securing a rescue package worth up to R1 billion ($53.6 million).
This financial lifeline is designed to stabilize AMSA’s long products business, which has been deemed unprofitable. Government entities such as the Public Investment Corporation, the Industrial Development Corporation, and the Unemployment Insurance Fund are expected to contribute to the package, reflecting a collaborative effort to avert an industry crisis.
Despite these efforts, ArcelorMittal has not reversed its decision to shut down operations, which would impact communities in Newcastle, Vereeniging, and surrounding areas. The redundancy process is scheduled to begin on February 6, with thousands of direct and indirect jobs at stake.
Mokele Morabe, AMSA’s employee relations manager, confirmed that while the company remains open to government proposals, it has yet to receive formal commitments. “The ArcelorMittal Group will be open to exploring solutions proposed by the South African government regarding the long products business and the company as a whole,” Morabe stated.
The potential closure comes at a critical time for South Africa’s infrastructure boom. AMSA’s steel products are vital for key projects, including the construction of power poles, rail lines, and roads—essential components for the country’s development. The automotive sector, which relies heavily on locally produced steel, also faces potential disruptions.
In early January 2025, AMSA announced plans to shut down its long products business due to financial instability. The affected facilities include Newcastle Works, Vereeniging Works, and Amras, a subsidiary specializing in rails and structural products.
The government’s intervention aims not just to save jobs but also to secure the future of South Africa’s steel industry. As negotiations continue, the outcome will significantly impact the nation’s economic landscape, its workforce, and ongoing infrastructure projects.
ArcelorMittal South Africa Shuts Down Longs Business, Threatening 3,500 Jobs
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