The Newcastle Growth Coalition Chapter and Newcastle Residents’ Forum are hopeful that the government can still do more to stop the closure of ArcelorMittal South Africa (Amsa).
This follows Amsa announcing earlier this week that it would be winding down the Longs Business, leading to 3 500 possible job losses.
Johan Pieters, chairman of the Newcastle Growth Coalition Chapter, said yesterday that they were positive that a working group comprising of the government, Amsa, and other stakeholders were working around the clock to hold off the shuttering of the plants, and of course especially the Newcastle plant and subsequent job losses.
“It is now important that action must be taken and executed during these meetings,” he said.
Pieters added that they were positive about the intervention of KZN MEC Economic Development, Tourism, and Environmental Affairs, Reverend Musa Zondi.
“We do understand that MEC Zondi wrote a letter to the dtic Minister, Parks Tau requesting intervention. We also understand MEC Zondi will be having meetings with major role players including Amsa. The Newcastle Growth Coalition Chapter is satisfied with the working group including the Presidency,” he said.
“We humbly request the President of South Africa, President Ramaphosa, to meet with Amsa’s CEO Mr Kobus Verster to ensure that the national government not only assists Amsa but also the thousands of families downstream and upstream that will be affected if the closure is not stopped.”
Matthew Shunmugam from the Newcastle Residents’ Forum said that they were deeply concerned about the potential closure of major industries or businesses in the area, particularly Amsa.
“The closure of Amsa’s Newcastle plant would have severe consequences for the town, which is already struggling with high unemployment rates, especially among the youth,” he said.
Shunmugam added that many employees of Amsa considered Newcastle their home, and relocating to another town would be a significant challenge.
“The forum believes that the three spheres of government - national, provincial, and local - have a crucial role to play in retaining Amsa in Newcastle. The Newcastle Local Council needs to proactively engage with AMSA's management to find solutions,” he said.
The Department of Trade, Industry and Competition (the dtic) on Wednesday committed to working with Amsa to find a workable and lasting situation.
Chifi Mhango, chief economist for the Don Consultancy Group (DCG), yesterday said that the news of the winding up of Amsa’s long steel business did not bode well for the South African industrialisation agenda, which has prioritised mineral beneficiation as part of its strategy.
“Amsa closing its plants that produced long steel products in Newcastle Works and Vereeniging will affect around 3 500 direct jobs, something which as a country we cannot afford. It's not good news at all to start the year 2025, from an economic perspective,” Mhango said.
He added that losing the capacity to produce your own steel as a country can be equated to outsourcing your military defence capability.
“The steel industry, by its very nature, is strategic; hence all premises or plants of ArcelorMittal SA are regarded as national key points.”
Newcastle Mayor, Xolani Dube, said that the municipality was deeply saddened by Amsa’s pronouncement to wind down their long steel business in the Newcastle Works.
“I have instructed the Municipal Manager to write a letter to the Honourable Premier of KwaZulu-Natal, Mr A.T. Ntuli, to convene an urgent meeting with all relevant stakeholders, including ArcelorMittal Management, with the intention of finding an amicable solution to save jobs as well as ArcelorMittal,” Dube said.
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