The South African Communist Party (SACP) is calling for the State to intervene in stopping what it describes as the “erosion of our national industrial base” and “manufacturing de-industrialisation”.

This after ArcelorMittal South Africa (AMSA) announced that it would be shutting its long-products business – resulting in the closure of the Newcastle mill as well as facilities in Vereeniging and eMalahleni involving the shedding of 3 500 direct and indirect jobs.

The Department of Trade, Industry and Competition is engaging with AMSA “until a workable resolution to the problems faced by AMSA and the steel industry is reached”.

The SACP, meanwhile, said it stood with the affected workers, and stressed that ensuring AMSA did not mothball or shut down production must be a priority.

It stated that aside from the expected loss of 3 500 jobs, about 20 000 to 25 000 others in the medium- and longer-term multiples in the value chain would be affected.

The SACP said this was unacceptable in a country that already struggled with unemployment, with over 12-million active and discouraged work seekers unemployed.  

It said State intervention should include the possible transfer of ownership or direct takeover of the affected productive capacity from AMSA to ensure the continuity of production, as opposed to allowing AMSA to close operations.

The SACP reiterated this call, further noting that any engagements that may have taken place between the government and ArcelorMittal had not translated into the “desired outcomes,” given the decision by AMSA to continue with its plans to mothball or close production at the affected factories.