Newcastle faced a sombre outlook at the end of 2023 as ArcelorMittal South Africa (AMSA) revealed its decision to downsize operations at both Newcastle Works and Vereeniging Works. However, according to the steel giant, there is some positivity in the works.
The initial announcement, made on 28 November 2023, outlined the steel giant’s phased wind down of its longstanding business at the two locations.
Despite employing various strategies in recent years to ensure long term sustainability, including cost cutting measures, savings on raw material costs, adjustments to asset footprints, and productivity initiatives, AMSA cited insurmountable challenges as the reason behind the decision.
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AMSA CEO Kobus Verster elaborated on the matter, acknowledging the impact on approximately 3,500 employees. An estimated 1,400 AMSA employees from Newcastle Works faced potential job losses, along with an additional 880 contractors.
Additionally, Verster highlighted challenges in Long Steel production, including the unreliable services of Eskom and Transnet, and increased costs over a six-year cycle in factors such as iron ore, import coal, local coal, rail logistics, electricity, natural gas, labour, and rebar prices.
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In response to the challenging situation, Apparently, AMSA is currently in discussion with various stakeholders to potentially halt the mass retrenchment process. Reports suggest a possible collaboration with the government to save money through reduced Eskom and Transnet tariffs.
To confirm the potential positive news, Newcastillian News contacted Tami Didiza, the Group Manager of AMSA’s Stakeholder Management and Communications at the Corporate Office.
While unable to provide an official statement on the matter as yet, Didiza confirmed ongoing serious discussions with relevant stakeholders were underway to secure jobs at the steel giant, emphasising the matter was currently at a sensitive juncture. “Once the meetings have been finalised, we will announce what has been decided,” assured Didiza.
With some potential good news on the cards, what are your thoughts? Share your views in the comment section below.
Comments 11
It will most propably be fine now…but…what will happen in 1 year from now when the Goverment does not bring its side??? We as families of Mittal workers cannot go through this situation again and aspecially before year end…the men is in such a low mental state now is unbelievable!!!
This will have a far more effect not only on Arcelor Mittal but also the town of Newcastle. A lot of smaller businesses will close. There will be far more than 3500 people loosing their income.
As a former employee of Arcelormittal and as a devoted christian i told some of my colleagues not to panic but pray…God is able to turn things around!!! Thank God in advance for the light at the end of the tunnel!!!
you retard
Praying not going to do anything. I can pray to Santa Claus and expect the same results. You need to get off your arse and do something. Waiting around for a make believe deity to do something for you means you will always be waiting…
Let us all pray and believe.
Its victory for the ANC and the workers at AMSA
We must find a long term solution to our factoy
It is good news for the entire town’s economy. I was fearing for the worst as things stand we just hanging by the tread of the wire.
We knew that ARCELOR MITTAL was playing some cards with the government from the very beginning when this was announced.
I hope that the stake holders will find a permanent solution to this problem.