ArcelorMittal South Africa produces approximately 2.4mtpa of steel.
The Solidarity union stated that AMSA informed employees of “mass retrenchments involving more than 4,000 jobs.” Previously, AMSA announced the closure of its long steel plants in Newcastle and Vereeniging, impacting 3,500 jobs. The company, which produces approximately 2.4 million tonnes of steel annually, has faced ongoing financial challenges, reporting a half-year loss of 1 billion rand ($56 million) in 2025 due to low sales volumes and reduced prices.
AMSA noted limitations in discussing the situation, stating: “We are limited in what we can say in the public domain given the complexities of the matters under discussion and a cautionary announcement we issued recently.” The company added: “Certain processes are still ongoing.” Efforts to find alternatives through discussions with the government have not succeeded, prompting the expanded layoffs.
The decision follows multiple challenges, including weak domestic demand, high electricity costs, logistical issues, and competition from local scrap recyclers and imported steel. AMSA has sought government support, requesting lower scrap export duties to level the playing field with recyclers and tariffs on steel imports to protect local production. Additionally, the company has asked for more affordable electricity and freight rates from state-owned utilities.
The Solidarity union expressed concerns about the government’s delayed response in addressing these issues, emphasizing the need for solutions to support the steel industry. AMSA deferred the closure of its long steel operations twice in 2025 to explore alternatives, but these efforts have not altered the current restructuring plan. The workforce reduction, now encompassing Vanderbijlpark, reflects AMSA’s efforts to navigate a challenging economic environment while maintaining its core operations.
