Amsa had decided that it was closing its longs steel manufacturing plants in Vereening and Newscastle by April this year, but said on Thursday that it was engaging the government and financiers “regarding funding and related matters to enable the deferral of the wind-down of the longs” business.
The company and government were also discussing steel industry issues that were affecting the viability of Amsa’s operations, including an influx of cheap scrap and imports of cheaper steel as well as logistical constraints.
The Congress of South African Trade Unions (Cosatu) said it was supportive of these measures.
It said it was “pleased government is assisting ArcelorMittal South Africa keep its longs steel plant in Newcastle operational while a plan to make it sustainable” was sought.
While Amsa has previously blamed the government for not acting speedily to fix the operating environment constraints it was facing, the Department of Trade, Industry and Competition (the dtic) has laid out financial interventions to ensure Amsa preserves its production capacity.
Through the Industrial Development Corporation (IDC), the dtic said the government provided financial assistance of R380 million to Amsa last month, This was in addition to the R1 billion working capital facility extended by the IDC in June last year.
Additionally, funding of about R417m has been approved for Amsa under the Temporary Employee/Employer Relief Scheme (TERS) to sustain 2 982 of the company’s employees over the next 12 months. “As a condition of this support, Amsa is required to participate in the Productivity SA turnaround and recovery programme.
“These interventions are not designed to provide direct financial relief to AMSA but are part of a broader strategy to protect South Africa's steel industry and ensure the preservation of its industrial capacity,” said the dtic.
The closure of Amsa’s longs manufacturing plants would result in thousands of employees losing their jobs and many more in the value chain, pushing the country's already high unemployment rate even higher. South Africa's economy has been bleeding jobs across mining and manufacturing, with companies blaming Transnet for or...
The company and government were also discussing steel industry issues that were affecting the viability of Amsa’s operations, including an influx of cheap scrap and imports of cheaper steel as well as logistical constraints.
The Congress of South African Trade Unions (Cosatu) said it was supportive of these measures.
It said it was “pleased government is assisting ArcelorMittal South Africa keep its longs steel plant in Newcastle operational while a plan to make it sustainable” was sought.
While Amsa has previously blamed the government for not acting speedily to fix the operating environment constraints it was facing, the Department of Trade, Industry and Competition (the dtic) has laid out financial interventions to ensure Amsa preserves its production capacity.
Through the Industrial Development Corporation (IDC), the dtic said the government provided financial assistance of R380 million to Amsa last month, This was in addition to the R1 billion working capital facility extended by the IDC in June last year.
Additionally, funding of about R417m has been approved for Amsa under the Temporary Employee/Employer Relief Scheme (TERS) to sustain 2 982 of the company’s employees over the next 12 months. “As a condition of this support, Amsa is required to participate in the Productivity SA turnaround and recovery programme.
“These interventions are not designed to provide direct financial relief to AMSA but are part of a broader strategy to protect South Africa's steel industry and ensure the preservation of its industrial capacity,” said the dtic.
The closure of Amsa’s longs manufacturing plants would result in thousands of employees losing their jobs and many more in the value chain, pushing the country's already high unemployment rate even higher. South Africa's economy has been bleeding jobs across mining and manufacturing, with companies blaming Transnet for or...
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The Mercury (Digital) - 1 Issue, March 24, 2025