Industry players have warned of the broader consequences of ArcelorMittal South Africa’s decision to shut down its long steel business. The decision places around 3 500 direct and indirect jobs at risk at its Newcastle and Vereeniging operations.
The company has attributed this to the prolonged weak economic conditions, logistics and energy challenges. It is a dull start to the year for workers facing the chop at ArcelorMittal’s long steel division.to prevent job cutsChief Executive Officer of the South African Chamber of Commerce and Industry Alan Mukoki has described the situation as disappointing.
“Well, you know, we’re obviously very disappointed because I don’t think that any business organisation would like to see a major outfit such as ArcelorMittal, even though it’s just one part of their business, their long steel business, which is actually closing. I mean their coke-making operations at Newcastle will continue. Although they also say that they’re going to be scaling that back, obviously to reflect lower demand in terms of what they have, they have announced.
Meanwhile, the Golden Triangle Chamber of Commerce has weighed in on the matter, saying this move points to the story of South Africa’s deindustrialisation. President Jaco Verwey highlights the several challenges facing the sector. “I think the deindustrialisation is happening in South Africa. We should know that the energy is a big problem. We know Eskom’s problems, but we also see in the last 4-5 months that Eskom is busy recovering by hook. How they do it? We don’t need to know.
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