Trade union Solidarity has called on ArcelorMittal and the government to collaborate on long-term solutions to the ongoing structural challenges facing the steel industry. Solidarity welcomed the announcement of a six-month postponement of ArcelorMittal South Africa's planned closure of its long steel plants in Newcastle and Vereeniging.
The delay follows a R1.7 billion loan from the Industrial Development Corporation, which helped avert the retrenchment of 3,500 employees.
Willie Venter from Solidarity emphasized that addressing the crisis in the steel industry must be a priority. “We understand the pressures the company is facing, but many other steel manufacturers are dealing with similar challenges, such as high electricity tariffs, transport costs, and import tariffs,” Venter said.
ArcelorMittal South Africa cited sluggish economic growth and rising energy and logistics costs as contributing factors to the plant closures, underlining the need for systemic changes to ensure the industry's sustainability.