ArcelorMittal South Africa may lay off more than 4,000 workers, according to the union
ArcelorMittal South Africa (ACLJ.J), opens new tab (MT.LU), opens new tab (AMSA) is set to lay off 4,000 workers, which is nearly half of its workforce and exceeds initial expectations. The cuts will now extend to its primary Vanderbijlpark plants, according to a union statement made on Monday.
The steelmaker has announced plans to close its long steel plants in Newcastle and Vereeniging this month, resulting in the loss of 3,500 jobs, as discussions with the government have not yielded an alternative solution.
AMSA stated that it is “restricted in what we can disclose publicly due to the complexities of the issues being discussed and a cautionary announcement we recently issued,” further noting that “certain processes are still in progress.”
The company manufactures approximately 2.4 million metric tons of steel each year, accounting for around 4% of the group’s total output.
The Solidarity union reported that AMSA informed employees about plans for “mass retrenchments involving more than 4,000 jobs”.
The statement indicated that the cuts had been extended to encompass Vanderbijlpark, which is AMSA’s flagship operation for flat steel production.
The company has been experiencing losses since 2023, with a half-year headline loss of 1.0 billion rand ($56 million) attributed to consistently low sales volumes.
AMSA has postponed the closure of its long steel operations on two occasions, as they struggle with weak local demand, elevated electricity tariffs, inadequate freight logistics, competition from domestic scrap recycling mills, and imports from China.
The union criticized the government for its slow response in pursuing solutions.
AMSA requested that the government reduce scrap export duties, arguing that these duties provide recyclers with an unfair advantage, and to implement tariffs on imports. It also aimed to secure advantageous electricity and freight rates from state-owned utilities.
