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The Portfolio Committee on Trade, Industry and Competition had an engagement today with ArcelorMittal South Africa (AMSA) in a closed meeting.
 
The meeting was called in response to recent developments regarding AMSA’s announcement that it would be closing its Newcastle plant. AMSA is the largest steel producer in South Africa and produces long steel products at this plant.
 
The announced closure would effectively curtail domestic capacity to produce long steel products, such as fencing material, rail, rods and bars. Furthermore, the closure would also result in the loss of 3 500 direct and indirect jobs. 
 
Given the importance of the steel industry for the infrastructure, manufacturing, construction, automotive and mining sectors, the committee is concerned about the impact of the closure on South Africa’s reindustrialisation and job creation efforts. The committee was of the view that the maintenance of domestic steel production capacity is critical to cushion the economy against global supply shocks.
 
Based on the engagement, the committee welcomed the ongoing discussions between government and AMSA to find a sustainable solution, as well as the progress made in these negotiations thus far. The committee was encouraged by government’s efforts to pursue an industry-wide solution.

Issued by the Parliamentary Communication Services on behalf of the Chairperson of the Portfolio Committee on trade, Industry and Competition, Mzwandile Masina and the Action Chairperson Roger Tobias Chance