As you will recall, in February 2024, ArcelorMittal South Africa (AMSA) announced its deferral of the unwinding process for six months. At the time, Newcastillian News reported how AMSA had engaged with various stakeholders, including the Government, represented especially by the Minister of Trade, Industry and Competition, Transnet, numerous industry associations, organised labour, affected suppliers, community forums, and its customers.
During this process, it was highlighted that these stakeholders expressed widespread concern regarding the negative and detrimental impact of the closure.
As a result, the company, along with the various stakeholders, embarked on an intensive process to explore options to reverse the decision regarding the Newcastle-based, Longs Business. At the time, ArcelorMittal South Africa explained that it did not need any preferential treatment or subsidies, rather it required the Government to ensure that a level playing field exists for South Africa’s primary steel producers, by addressing the structural constraints affecting the steel industry.
Resulting from ongoing intensive engagements with all key stakeholders, as reported by Newcastillian News at the time, AMSA’s Chief Executive Office Kobus Verster explained that the company was able to announce the deferral of the wind down of the Longs Business to allow for its continued operation for up to six months. During this time, the objective was to further progress and conclude the short-term initiatives, followed by their implementation to secure the targeted benefits.
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In light of these developments, Newcastillian News sought an update from AMSA to gauge the progress achieved thus far.
Tami Didiza, AMSA’s Group Manager of Stakeholder and Communications, provided an overview explaining that due to the numerous consultations, specific short-, medium-, and long-term initiatives were identified, some of which are outlined in the Steel Masterplan, to address the aforementioned constraints.
“Deferring the wind-down decision entails significant risks and requires the commitment of, at the very least, the Company, its customers and suppliers, the Government, state-owned enterprises, and our employees. The short-term measures under consideration, in particular, must allow for the progression of medium- and long-term interventions aimed at ensuring business sustainability,” explained Didiza.
Despite the inherent challenges, AMSA’s decision to postpone the Longs Business wind-down underscores its dedication to navigating the path towards sustainability.
Furthermore, Didiza explained that during this phase, the objective was to make further progress and complete the short-term initiatives, followed by their implementation to ensure the desired advantages.
He added that the company was actively involved in these complex and extensive high-level negotiations. With this in mind, Didiza explained once the company had made a definitive decision on the outcomes of these engagements, the necessary announcement would be made.
“However, if the anticipated benefits of the above-mentioned short-term measures are realised, the entire Company, including the Longs Business, will become more sustainable. This will also avoid job losses and have a substantial impact on the entire steel value chain, the South African economy, and more specifically the Newcastle community,” explained Didiza.
Therefore, he assured that once there was finality in the discussions and the outcome was formally accepted by the company’s Board, AMSA would be in a position to comment, but until then, the company was unfortunately, not able to provide any detailed update due to the complexity and sensitivity of the intensive negotiations.
As discussions continue and efforts to secure the future of AMSA rage on, what are your thoughts on the situation as it now stands?
Share your views in the comment section below.
Comments 6
I hope for the business the economy and the employees the powers that be succeed
I just want to give credits to Mr Quinton Boucher, for writing this very engaging and easy to read article hope you get the recognition you deserve.
I hope the outcome turns out Good because my people need these Jobs, because if not the streets are going to be bloodbath.
So very grateful for the powers that be, for taking this initiative. Hoping and praying that all goes well in saving the jobs of our beloved people of Newcastle. FINGERS CROSSED 🤞.
Prayers for newcastle
Any update on this?
Good day, Unfortunately not at this stage. But, as soon as we know we will update the public.