Concern Over Arcelormittal Sas Shutdown Of Long Steel Operations

Industry players have warned of the broader consequences of ArcelorMittal South Africas 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 ArcelorMittals long steel division.

It follows months of consultations between the company and government that have ultimately failed to prevent job cuts .

Chief Executive Officer of the South African Chamber of Commerce and Industry Alan Mukoki has described the situation as disappointing.

Well, you know, were obviously very disappointed because I dont think that any business organisation would like to see a major outfit such as ArcelorMittal, even though its 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 theyre going to be scaling that back, obviously to reflect lower demand in terms of what they have, they have announced. We cant be happy about that, obviously, because as you know, it affects the economy negatively, jobs are likely going to be affected and I think that the number of around 3 500 people were mentioned. So, that is not necessarily good news because obviously to the fiscal year, losing any taxes that may well be available if they were still in operation," says Mukoki.