Concerns rise over potential closure of ArcelorMittal's long steel business

4000 jobs on the line as Newcastle blast furnace is placed into temporary care and maintenance

- YOGASHEN PILLAY

NEWCASTLE communities have raised major concern about the possible closure of ArcelorMittal South Africa (Amsa) and its long steel business, putting close to 4 000 jobs on the line.

This follows Amsa announcing on Tuesday that a sustainable solution has not been implemented to secure the future of its Long Steel Business beyond the current deferral period, which ends on 30 September 2025.

Amsa said that the company has worked closely with the Industrial Development Corporation (IDC), government, and other stakeholders to explore every possible strategic option. “Unfortunately, no solution has been concluded yet. As a result, the Newcastle blast furnace has been placed into temporary care and maintenance, and the company is now taking preparatory steps towards the potential closure of the long steel business. This includes communication with employees and, if required, the issuing of notices in terms of the Labour Relations Act”

Johan Pieters, the chairman of the Newcastle Growth Coalition Chapter, said that they have called for an urgent meeting with Amsa. “The Newcastle Growth Coalition Chapter took note of the possible closure of long steel business in Newcastle and the memo sent to Amsa Newcastle employees on Friday evening and during the weekend”