Government Pledges to Support Steel Industry Amidst ArcelorMittal’s Business Changes


Pretoria: Government is committed to preserving local industries and safeguarding employment opportunities, the Department of Trade, Industry and Competition said. This as government acknowledged the concerns raised by the National Union of Metalworkers of South Africa (NUMSA) on the impact of ArcelorMittal South Africa’s (AMSA) decision to wind down its long steel business.



According to South African Government News Agency, the Department of Trade, Industry and Competition (the dtic) expressed its awareness of the implications of AMSA’s decision for workers, the steel industry, and the economy. In response to NUMSA’s picket outside the Industrial Development Corporation (IDC), the department stated that the Minister is awaiting a memorandum from the board detailing the demands. The Minister plans to review the issues and respond accordingly.



The dtic emphasized its ongoing commitment to engaging with all stakeholders, including AMSA, organized labor, and industry partners, to devise sustainable solutions aimed at preventing job losses and supporting affected workers. The department is actively exploring avenues to ensure the resilience of South Africa’s steel sector and urged all parties to engage constructively in protecting industrial capacity while securing economic stability.



The government reiterated its dedication to preserving local industries and protecting employment opportunities. Earlier this year, the dtic highlighted the steel industry’s role in South Africa’s economic reconstruction, particularly within the manufacturing, mining, construction, engineering, and transportation sectors.



AMSA’s decision to wind down its long steel business at the Newcastle plant prompted the dtic to express serious concern and reaffirm its commitment to working with AMSA towards a sustainable solution. In 2024, AMSA had sought various concessions from government departments and state-owned entities, leading the Minister of the dtic to establish a comprehensive and coordinated approach to address the company’s issues.



A technical working group was formed, comprising stakeholders from the dtic, AMSA, Departments of Electricity and Energy, Transport, as well as Eskom, Transnet, and private sector entities, to collectively address the challenges facing the steel industry.