Is there a glimmer of hope for ArcelorMittal South Africa’s (AMSA) Newcastle Works and Vereeniging Works?
This question arises as the steel giant confirms that it is engaged in discussions with the Government and various stakeholders regarding potential funding solutions.
AMSA’s Corporate Communications Manager, Tami Didiza, explained that following the company’s announcement at the end of February 2025 regarding the board of directors’ decision to proceed with the final wind-down of ArcelorMittal South Africa’s Long Steel Business, the Government issued a statement affirming its commitment to ongoing engagement with the company.
“ArcelorMittal South Africa is engaging with stakeholders, including Government, regarding funding and related matters to enable the deferral of the wind-down of the Longs Business, as well as regarding the interventions previously announced,” said Didiza.
However, he cautioned that without a concrete agreement on funding and associated matters, delaying the wind-down process would not be feasible.
“Accordingly, the wind-down process has not been stopped and is being managed in a manner that accommodates ongoing funding discussions,” he stated.
Amid these developments, Didiza revealed that AMSA has received multiple inquiries concerning strategic alternatives for both the company as a whole and the Longs Business. “None of the approaches constitute a firm intention to make an offer in terms of the Companies Act, 2008. The Company will continue to explore strategic alternatives where appropriate,” he emphasised, adding that further announcements will be made as developments unfold.
Additionally, Didiza advised shareholders to exercise caution when trading ArcelorMittal South Africa shares until a formal update is provided.
With the company offering a potential reprieve, what are your thoughts on the matter? Share your views in the comments below.
4 Responses
This company is just playing dice with people’s lives they are extremely insensitive and deceiving in their dealings and transparency. Bottom line is let people know for sure what is going on so that we plan our lives for the future. We cannot live like a Pre paid month to month deal. Their decision or lack of shows that management is not qualified to deal with emotional intelligence. This delay in responding or reaching a decision affects not only AMSA but plenty other suppliers and customers. Terrible management
AMSA is playing brutally and don’t even care for our people livelihood of our people. All it care’s about is profiting running the company with Government and tax people’s money. They fund of R3 Billion they need. Having learned that is based on electricity tereifs, transport, scrap tax. Yet even when government has already showed that it is concerned with AMSA,’s continuing with winding down process by cutting scrap tax AMSA still not satisfied but playing hard ball. We know that there are companies having interest in buying the company to save the jobs yet it doesn’t want to sell it. What’s the purpose to bring down the economy down, keep our people poor. It’s a question of South Africa to join hands with the Mittal employees to embark on national industrial strike to stop this madness. We push both government and Mittal to come with proper plan to save the job. The shutting down of Mittal particularly Newcastle will leave people devastated and the down being elephant.
From Griffiths Mzizi
Regional Chairperson of Progressive Civics Congress Vaal Region.
0640104854
Am interested the advertisement post and when you need me as soon as possible you get me .am a hard worker and well discipline
Poor Management they are a click looking after their own we’ll being. It’s like a family business. Cadre employment. It’s not thumb sucking I had my personel run with them. They protecting each other in the Click. Fire the Click All The Top Brass.
Don’t Blame the Government.Its not a State’s Business.