Arcelormittal Closures Hold Ramaphosa's R4.8-trillion Infrastructure Dream To Ransom

ArcelorMittal SAs plans to shut down a century-old steel mill in South Africa are holding President Cyril Ramaphosas dream of fostering a 257 billion R4.8-trillion infrastructure boom to ransom. That plant and two others it wants to idle supply what builders need for the vaunted exponential rollout of power-transmission towers, rail lines and new roads projects that the leader says will turn the country into 'a construction site,' boost sluggish growth and provide much-needed employment.
They are also crucial to the jewels in South Africas manufacturing industry its auto plants and provide the specialty steel for the drills used in the countrys precious-metal mines that rank among the worlds biggest.
Rand York Castings, one of the nations largest steel fabricators, said it may move a unit that makes civil-engineering products it exports globally to India. Industry groups estimate that at least 100 000 relatively high-paying positions are at stake in South Africa, where almost a third of the labour force is jobless.
'Its a devastating blow to South Africas industrialisation and infrastructure-development goals,' said Lucio Trentini, the chief executive officer of the Steel and Engineering Industries Federation of South Africa , which represents more than 1 300 companies employing 170 000 people. 'It was a decision that we were hoping could be at best avoided, at worst delayed.'