Significant uncertainty surrounds ArcelorMittal South Africa’s (AMSA) plan to wind down its longs business at its Newcastle and Vereeniging Works. With this in the works, thousands are sitting with bated breath, hoping, praying, that something happens to save the company.
Conflicting reports have emerged, suggesting the steel giant may reverse its closure decision after reportedly securing a R3 billion government bailout to sustain operations.
This rumour has spread, resulting in countless people contacting Newcastillian News for answers. Moreover, due to the power of good news in hard times, people have been spreading this around, innocently spreading hope. But how credible is this claim and is it true?
According to Solidarity, it has obtained a ruling from the Commission for Conciliation, Mediation and Arbitration (CCMA) regarding AMSA’s initial application, which suggests that negotiations between the Department of Trade, Industry and Competition (DTI) and AMSA are still underway to sustain the production of long steel products within AMSA, potentially averting the closure announced in January 2025.
Willie Venter, Deputy General Secretary of Metal and Engineering Industry at Solidarity, elaborated on this development. “Solidarity is deeply concerned that this ruling would create more uncertainty amongst employees already affected by this closure and we require of both parties in these discussions to give us clarity on the way forward and the progress made during these discussions.”
Venter further expressed apprehension about the government’s intentions, questioning whether any proposed aid would merely offer temporary relief rather than ensure the long-term viability of AMSA and the broader steel industry.
“We are also very concerned and require ArcelorMittal to come to the table with their intentions over the next period should they receive the aid, how they will go about repositioning long steel products to keep it sustainable for a long period, and that parties don’t end up in the same process at the end of 2025 or early 2026. We would want our members and employees affected by this process to get past this past where there is uncertainty about their jobs,” he remarked.
As previously stated, discussions indicate that AMSA has secured a R3 billion bailout to maintain operations at its Newcastle Works and Vereeniging Works. Therefore, Newcastillian News sought comment from the Industrial Development Corporation (IDC) to verify the R3 billion bailout which has been said to be given to AMSA.
“The Industrial Development Corporation (IDC) of South Africa Limited was established in 1940 through an Act of Parliament (Industrial Development Corporation Act, 22 of 1940) and is fully owned by the South African Government.” – To read more about the IDC, click here.
According to Tshepo Ramodibe, the IDC Head of Corporate, no bailout whatsoever has been issued to the steel giant.
In fact, Ramodibe highlighted that the discussions on the closure of the company’s longs steel business are still underway. “The IDC and other government stakeholders remain engaged with AMSA regarding its business.”
Furthermore, Ramodibe said, “The IDC recognises the significant challenges faced by ArcelorMittal South Africa and the potential impact on workers, their families, and the broader economy. To address these challenges, the IDC has provided AMSA with working capital facilities to support its short-term sustainability while seeking long-term solutions. This support ensured that operations continued during this period.”
However, the IDC affirmed that no futher information could be provided at this stage.
Moreover, Venter cautioned that without enduring solutions, such financial intervention holds little value unless it demonstrably benefits ArcelorMittal South Africa and the long-steel sector over an extended period. He noted that Solidarity does not consider talks of a new R3 billion bailout from the government to be a solution.
“At the outset, the trade union demands much greater clarity for its members from AMSA as well as the Department of Trade, Industry and Competition about the nature and scope of the new and temporary rescue plan which apparently will extend over a one-year period. Moreover, it appears that closures and the forced retrenchment of employees are continuing while Solidarity wants to see it suspended.”
Venter described the latest plans for emergency funding as perilously shortsighted, lacking a comprehensive strategy for revitalising the long-steel plants and the wider industry. He added that this development rekindles uncertainty among Solidarity’s members and employees, who received this distressing news earlier this year after several unsuccessful rescue efforts.
Venter underscored the numerous unresolved questions dampening enthusiasm for this proposal. “How can taxpayer money be used for industrial plants that are not functioning? How can a large multinational company ask for money to stay open from a government that itself does not have the necessary money? And furthermore, what happens 12 months from now, and how will the plants be made sustainable? It is also critically important to communicate which intervention measures will also apply to the larger industry,” he asserted.
Additionally, he stressed that Solidarity urgently implores AMSA and the government to provide transparency throughout this process to spare employees the recurring trauma of potential retrenchment later this year or early next year.
Solidarity is now advocating for the suspension of the retrenchment process—or its resumption only after the government provides a definitive response regarding the bailout. Venter also noted that consultations between trade unions and AMSA concerning the retrenchments are scheduled to continue on Friday, 14 March 2025.
Lastly, it should be noted that Solidarity is not alone in demanding greater transparency regarding the ongoing deliberations about AMSA’s future. Sonja Boshoff, Chairperson of the Select Committee on Economic Development and Trade, has urged the government to deliver prompt and unambiguous communication about its plans.
“We are alarmed by the looming shutdown of AMSA’s long steel production plants, as it threatens the livelihoods of thousands of workers. This comes at a time when our country is grappling with severe economic challenges and record-high unemployment rates,” Boshoff declared on Monday, 10 March 2025.
Beyond the immediate impact on employees, she warned of the cascading economic repercussions, highlighting the severe ripple effects on small businesses dependent on the steel industry. She explained that many of these enterprises support vital sectors such as mining, infrastructure development, and automotive manufacturing, all of which rely heavily on steel production.
“Disruptions in the steel supply chain could affect production lines, putting even more jobs and economic growth at risk,” she added.
Boshoff also lambasted the government’s reticence about its negotiations with AMSA, calling the lack of openness profoundly troubling. “It is unacceptable that those most affected — the employees and small business owners — are left in the dark. While we support the government’s efforts to engage with AMSA, these discussions are meaningless if they exclude the very people whose lives and livelihoods hang in the balance,” she said.
She further confirmed that her committee would vigilantly monitor the situation and expects the Department of Trade, Industry and Competition to submit a comprehensive report at its next appearance before the committee.
“This is an urgent matter that requires immediate attention from the Government of National Unity. AMSA plays a vital role in South Africa’s industrial landscape, and its collapse would deal a severe blow to our economy, affecting key sectors like mining, infrastructure, and automotive manufacturing,” Boshoff concluded.
Her calls for transparency echo a statement issued by the Department of Trade, Industry and Competition in March 2025.
On 4 March, the department acknowledged the steel industry’s pivotal role in South Africa’s economic reconstruction and recovery, reassuring stakeholders that it was collaborating with AMSA to identify a solution for preserving long steel capacity in the country. However, it refrained from elaborating on these engagements.
To read more, click here.
Additionally, on 28 February 2025, ArcelorMittal South Africa confirmed it had engaged extensively with government bodies and key stakeholders to explore feasible solutions to prevent the impending wind-down of its Newcastle and Vereeniging operations. Despite these efforts, no viable resolution emerged. The company cited challenges such as escalating electricity costs, inadequate rail infrastructure, and certain policies that impeded progress.
To read more, click here.
AMSA was approached for comment, but the company indicated it is currently unable to provide further statements to the media on this matter. Nonetheless, AMSA assured that updates and information would be shared as soon as they become available.
With the discussions around the imminent closures at ArcelorMittal South Africa’s Newcastle Works and Vereerniging Works still underway, and no 3 billion bailout secured as yet, what are your thoughts on the above?
Share your views in the comment section below.
7 Responses
AMSA and government are playing with people’s lives literally. They need to be more transparent because this is becoming too much for us to tolerate. We need clarity on how to plan our lives
Key government policy issues are the stifling block regarding ACL ability to maintain a viable business in long steel, these issues have been highlited by AMSA more then a year ago, the failure to address these issues will lead to a devastation in the Industry and beyond, a bailout is temporary relieve to a greater challenge. It seems as if their is a higher political play due to Governments lack of transparency.
Is it was a profitable state owned entity. With functioning supporting infrastructure to ensure competitiveness in the market.
Bail out will not help unless the supporting infrastructure is attended to and functional.
Those people created lies about amsa bailout 3 billion fake news they must put them into account and crawl them into jail for their rest of their lifetime
How does such a huge entity suddenly require a bailout.
The top brass need to be investigated as AMSA supplies so many industries
Bring in people that are dedicated to the course of the business and work together
Its like the eskom saga the government official need “something to eat” they are busy with corruption this is why they dont want to fix the issues statet by amsa, need to fill their pockets first untlil there is nothing left. Fuk this government.
With all the bail outs of SOEs already draining the fiscus, now taxpayers must bail out corporates as well!