ArcelorMittal South Africa (AMSA) is preparing to lay off more than 4,000 workers, almost half its staff, as financial losses deepen. The cuts will affect not only the long steel plants in Newcastle and Vereeniging, which are closing this month with 3,500 job losses, but also the main Vanderbijlpark plant that makes flat steel.
The Solidarity union said AMSA had told employees of the large retrenchments after talks with the government failed to find solutions. AMSA has been posting losses since 2023, including a R1 billion ($56 million) loss in the first half of this year, hit by weak demand, low prices, high electricity costs, poor transport, and competition from cheaper imports.
The company asked the government for support, including lower scrap export duties, tariffs on imports, and cheaper electricity and freight. The union has accused officials of moving too slowly, leaving thousands of workers facing job losses and raising concerns about the future of the steel industry and industrial jobs in South Africa.