The dtic stated it remains committed to working with AMSA to find a workable and lasting situation. Picture: Karen Sandison/ Independent Newspapers.
The Department of Trade, Industry and Competition (the dtic) said on Wednesday it noted with serious concern the announcement by ArcelorMittal South Africa (AMSA) to wind down its longs steel business at its Newcastle plant.
In fulfilment of its mandate to work with the private sector in growing the local economy, the dtic stated it remains committed to working with AMSA to find a workable and lasting situation.
The dtic said, “During the course of 2024, AMSA had reached out to various government departments and state-owned entities with requests for different concessions for its business. Having taken heed of these requests, the Minister of Trade, Industry and Competition, Parks Tau, took the decision to form a comprehensive and coordinated approach to resolving the issues raised by AMSA. In doing so, the Minister Tau set up a technical working group made up of the relevant stakeholders including the dtic and AMSA, the departments of Electricity and Energy, Transport, as well as Eskom, Transnet and Private Sector Stakeholders.”
The department said that the working group held regular engagements up until and well into December 2024.
“It has always been, and continues to be the intention of government to continue these engagements until a workable resolution to the problems faced by AMSA and the steel industry is reached. The steel industry is critical in the reconstruction and recovery plan for the South African economy, particularly, the manufacturing, mining, construction, engineering, and transportation sectors, which are at the centre of the industrialisation, localisation and beneficiation programmes of government,” the department further stated.
“Whilst the immediate task will be on addressing structural issues affecting AMSA’s longs steel business, the broader focus should also be on addressing productivity improvements and supply chain efficiencies, investments in low-carbon technologies, competitiveness and regaining the market share. It is also important that public and private sector’ entities and companies commit themselves to procure locally manufactured steel products in their projects; Undoubtedly, such a commitment will contribute positively to aggregate demand, job creation and economic growth in South Africa,” the dtic said.
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