Last month, Amsa made the tough decision to wind down its long-steel business by the end of January 2025—a retreat that is expected to result in the loss of up to 3 500 jobs. Picture: Supplied
Image: Supplied
The Portfolio Committee on Employment and Labour has expressed its support for government's intervention and engagement with ArcelorMittal South Africa (AMSA) regarding potential job losses.
IOL previously reported that the government was in talks with AMSA, which had announced plans to close its long steel manufacturing plants in Vereeniging and Newcastle by April this year.
If the company proceeds with these closures, 3,400 direct jobs will be lost, further exacerbating the already high unemployment rate in the country.
Last week, the government confirmed that discussions with AMSA are ongoing in an effort to prevent the planned shutdown of the Longs steel plant. It was disclosed that the Department of Trade, Industry and Competition (DTIC) and the Industrial Development Corporation (IDC) had provided financial assistance totalling R380 million to AMSA in February 2025, in addition to a R1 billion working capital facility extended by the IDC in June 2024.
The government also stated that the Temporary Employee/Employer Relief Scheme (TERS) has approved nearly R417 million in funding to sustain 2,982 employees over the next 12 months.
The government explained that the interventions were not designed to provide direct financial relief to AMSA but "are part of a broader strategy to protect South Africa’s steel industry and ensure the preservation of its industrial capacity"
In a statement to the media, the Portfolio Committee expressed support for the government's efforts, noting the positive cooperation between the Departments of Employment and Labour, Trade, Industry and Competition, and other stakeholders in securing the potential return of AMSA operations.
"The briefing the committee received from the Department of Employment and Labour yesterday was appreciative of the cooperation between the departments of Employment and Labour; Trade, Industry and Competition; and other role-players to secure the possible return of AMSA," it said in a statement.
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