The countdown has officially commenced for both ArcelorMittal South Africa’s Newcastle and Vereeniging Works.
The steel giant declared in November 2023 its intention to wind down the Newcastle Works and Vereeniging Longs business, impacting approximately 3,500 employees.
However, in February 2024, the decision was deferred for six months.
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Now three months later, with the company implementing various interventions to salvage the business, CEO Kobus Verster has set August 2024 as the end of the deferral period. “We believe the six-month timeline is sufficient to make a decision,” stated Verster.
As negotiations continue with stakeholders, including customers needing longevity plans in the event of Newcastle Works closure, the company remains cautiously optimistic. Additionally, during a recent media briefing, AMSA noted that while no further guidance could be provided, the company was still progressing with the necessary short-term initiatives, and it was reasonably positive that they were making progress.
With both Newcastle and Vereeniging communities on edge, it was highlighted during the briefing that if ArcelorMittal maintained its long-steel operations, significant investment plans were on the horizon.
This included investment in renewable energy sources as part of a 2030 decarbonisation strategy, aimed at reducing reliance on state-owned power utility, Eskom.
As Newcastle awaits AMSA’s final decision, what are your thoughts? Do you believe the business will keep going after August? Be sure to share your views in the comments below.
Comments 14
This company is of vital importance to the economy of this country. There are so many businesses that rely on the steel long sections provided by the company. It is crucial that the government starts with much needed development projects, to maintain sustainability of the plants.
They should rather just announce their decisions and put an end to people’s fears, stress and anxiety than to continue in this manner. Goes to show you that the Big guys don’t care about the people on the ground. Terrible management from AMSA
Like you care about any people on the ground that’s the pot calling the kettle black, oh I forgot you care about Stormy more then your wife your businesses way more then the employees you got rid of in the thousands or more, your a convicted Criminal and should be barred from ever holding any office again then go where u belong too prison!!
I love you Me Trump. If only you could rule in SA.
Since kobus come to Mittal steel the company is going down slowly i see now why he was fired from the previous companies he worked at
Mittal owner please get rid of this kobus before it’s too late in vanderbjlpark Mittal steel we never strike but since he started to work here we are striking or every year we go to CCMA because kobus don’t want to give us increase he always tell us about retrenchment hayi fork kobus
Let them close because there’s nothing they have done for our people in madadeni and Newcastle except polluting our air and making sure that busines is for their friends we are in a climate crisis closure of accellor Mittal would reduce carbon emissions and make our health safer
Mittal has put put food on da table for most,they have done tremendous work for the least fortunate most of the NPOs rely on their generosity.
Pls Mittal there has to be a solution.Newcastle will become a ghost town.
Hello I believe in AMSA sustaining it’s presence and giving me a job. As the case may be more youth is waiting for opportunities which are life changing.
AMSA is another anc project.
ISCOR had to be sold to get their dirty paws on the money.
AMSA systematically ran the company into the ground to use cheap labour in India
David, you may know a lot about many things, but of the history from ISCOR to ArcelorMittal, you know nothing.
The ANC is the government, they should know, they sold iscor.finish and klaar
Increase import taxes on steel. We are crippling our own people. Another ANC mess.
I pray that they can salvage the business. It might be 3500 employees affected but taking those people’s families into account, it is affecting feeding about probably 15 000 people.
Mittal and previously Iscor has always faced retrenchments for as long as I can remember, but is closing down the plant really the route to go?
I believe that if there is better strategic planning and cost cuts that perhaps all isn’t lost, but then again I have not been privvy to any financials.
I continue to keep everyone affected by this in my prayers – the 15 000 directly, and the town as a whole indirectly.
Why don’t they put the Arcellor plants to use and to burn tons of rubble that is freely available in S A the ashes again can be used to making paving bricks or bricks to build houses for the poor