-
A logo is seen on the roof of the ArcelorMittal building.
The KwaZulu-Natal MEC for Economic Development, Reverend Musa Zondi, has called for an urgent national government intervention to prevent ArcelorMittal from closing its so-called longs steel business in Newcastle and Vereeniging.
Longs refer to structural steel which is mainly used in railways, agriculture, mining and energy transmission. Zondi says the expected discontinuation of production of long steel in Newcastle puts 2 000 jobs at risk.
He has written to the Minister of Trade, Industry and Competition, Parks Tau, asking for further engagements to deal with ArcelorMittal’s challenges.
“We are deeply concerned about ArcelorMittal decision to shut down its long steel operation in Newcastle and Vereeniging. This move will directly impact 2000 jobs and destabilise the local economy. If not urgently addressed, the effects will stand beyond Newcastle posing a serious threat to the broader economy of KwaZulu-Natal. We are therefore calling on the national government to intervene and find solutions that protect jobs and sustain economic growth in the region.”
NUMSA
Meanwhile, the National Union of Metalworkers of South Africa (NUMSA) has called on the government to hold public engagements with relevant stakeholders and find solutions to prevent job losses at ArcelorMittal.
This comes after the company announced that it has decided to wind down its steel-making business placing an estimated 3 500 jobs on the line.
The steelmaker blames prolonged weak economic conditions, structural issues and uncompetitive conditions for its decision to close some operations.
NUMSA National Spokesperson, Phakamile Hlubi-Majola:
VIDEO | President of the Golden Triangle Chamber of Commerce Jaco Verwey says the timing of this decision is also unfortunate.
