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The Chairperson of the Select Committee on Economic Development and Trade, Ms Sonja Boshoff, has called on the government to engage openly and transparently with all stakeholders regarding the pending shutdown of ArcelorMittal South Africa (AMSA).
 
Ms Boshoff expressed deep concern over the uncertainty faced by the 3,500 employees whose jobs are at risk. She called for an urgent need for clear communication about their future.
 
“We are alarmed by the looming shutdown of AMSA’s long steel production plants, as it threatens the livelihoods of thousands of workers. This comes at a time when our country is grappling with severe economic challenges and record-high unemployment rates,” said Ms. Boshoff.
 
She highlighted the far-reaching consequences of the shutdown pointing out the ripple effect on small businesses that depend on the steel industry including those supplying critical sectors such as mining, infrastructure development, and the automotive industry.
 
“The automotive sector, which relies heavily on steel for manufacturing, will also feel the impact. Disruptions in the steel supply chain could affect production lines, putting even more jobs and economic growth at risk,” she added.
Recent media reports have confirmed that the shutdown which is going to affect AMSA’s plants in Newcastle and Vereeniging, was scheduled to begin this week.
 
Ms Boshoff criticized the government’s lack of communication about its ongoing discussions with AMSA, calling the silence as deeply concerning.
 
“It is unacceptable that those most affected — the employees and small business owners are left in the dark. While we support the government’s efforts to engage with AMSA, these discussions are meaningless if they exclude the very people whose lives and livelihoods hang in the balance,” she said.
 
She confirmed that her committee would closely monitor the situation and stressed that the Department of Trade, Industry and Competition would be expected to provide a full report during its next appearance before the committee.
 
“This is an urgent matter that requires immediate attention from the Government of National Unity. AMSA plays a vital role in South Africa’s industrial landscape, and its collapse would deal a severe blow to our economy, affecting key sectors like mining, infrastructure, and automotive manufacturing,” Ms Boshoff concluded.

Issued by the Parliamentary Communication Services on behalf of the Chairperson of the Select Committee on Trade, Industry and Cooperation, Sonja Boshoff