The Department of Trade, Industry and Competition (dtic) has confirmed measures to support ArcelorMittal South Africa (AMSA) and protect South Africa’s steel industry, focusing on maintaining its industrial capacity.
As reported by Newcastillian News on Wednesday, 19 March 2025, AMSA confirmed ongoing discussions with stakeholders, including the government, about funding and related issues to delay the wind-down of the Longs Business, alongside earlier interventions. The company noted that without a firm agreement on funding, postponing the wind-down would not be possible.
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Subsequently, Yamkela Fanisi, the DTIC’s Ministerial Spokesperson, stated that the government’s efforts go beyond preventing the closure of the Newcastle Longs Steel Plant, targeting a broader recalibration of the steel industry’s role in South Africa’s economy.
“The DTIC and the Industrial Development Corporation (IDC) provided R380 million in financial support to AMSA in February 2025, in addition to the R1 billion working capital facility from the IDC in June 2024,” said Fanisi.
Moreover, he added that the Temporary Employee/Employer Relief Scheme (TERS) has approved nearly R417 million to support 2,982 employees for the next 12 months, requiring AMSA to join Productivity SA’s turnaround and recovery program. “These measures are not direct financial aid to AMSA but part of a strategy to protect the steel industry and maintain its capacity. The government continues to explore solutions to sustain long steel production and protect jobs,” Fanisi explained.
Additionally, he explained that a technical working group, comprising key stakeholders including the Presidency, the dtic, the Departments of Employment and Labour, Electricity and Energy, Transport, National Treasury, the IDC, the South African Revenue Service, Eskom, Transnet, and AMSA, continues to address policy-related challenges affecting the steel industry’s operations.
“The South African government considers this matter a priority and remains steadfast in its efforts to secure a long-term and sustainable future for the country’s steel sector,” concluded Fanisi.
With the future of AMSA’s Newcastle Works still hanging in the balance, what are your thoughts on these developments and the steps being taken to assist AMSA in navigating its challenges? Share your perspectives in the comment section below.
Comments 3
Fire Kobus Vester, he’s only good at closing down plants and loosing share value for companies. Check his record at Nampak
Fire the management get fresh management who cares about growth and employees not making money to their own pockets.
Very interesting figures from my calculations the R480 million could lift 32million productive emerging farmers from poverty ……..