Jobs bloodbath for critical South African industry

After several failed attempts to save its long-steel business, ArcelorMittal South Africa (AMSA) has confirmed that these operations will be wound down.

This will not only lead to mass retrenchments involving more than 4,000 jobs but will also have far-reaching consequences for South Africa’s steel and manufacturing sectors.

AMSA announced its plans to shut down this business in 2023, citing prolonged weak economic conditions, logistical and energy challenges, and unsustainable competition from low-cost imports.

Hopes for a reversal arose in 2024 when AMSA indicated signs of economic recovery in South Africa, particularly in the manufacturing sector. 

The company engaged extensively with the government to address the industry’s challenges, aiming to safeguard the thousands of jobs under threat.

However, in January 2025, AMSA confirmed that it plans to move ahead with winding down its long steel business.

Despite some crisis talks and government engagements since, trade union Solidarity confirmed on Monday, 1 September, that AMSA is preparing to close its long steel plants and commence mass retrenchments involving more than 4,000 jobs. 

“These closures, and the subsequent retrenchments, have been expanded to include the Vanderbijlpark plants as well, and must be attributed to the government’s inability and a dragging of its heels to find solutions to the structural problems that fall under its control,” the organisation said.

According to Solidarity, AMSA issued notices in accordance with the requirements for formal retrenchment processes, and they will take effect from 1 September 2025, with the plants set to close at the end of the month.

AMSA said this drastic step was necessitated after all attempts to keep the industry sustainable failed. 

The steel manufacturer pointed to problems such as rising import tariffs, insufficient tariff protection, excessive electricity costs, an expensive and dysfunctional rail transport system, and a drop in local demand for its products.

Bloodbath looms

Solidarity Deputy General Secretary Willie Venter assigned the blame for the closure to the government, warning that an “even bigger bloodbath looms”.

“This closure is the direct result of the government’s inability to create a competitive industrial environment and to find and implement real solutions with a sense of urgency where such solutions fall within its control,” Venter claimed. 

“For years, our steel industry has been plagued by power crises, a failed rail and ports system and a government that simply cannot make the policy decisions to protect our industries. Now the jobs and income of thousands are at stake.”

He warned that the retrenchments would not only affect the steel industry, but that all indications currently point to a retrenchment bloodbath that could hit several industries in South Africa. 

“If major companies such as AMSA fail to stay afloat, the government should realise that the country is on the brink of industrial disaster,” he said. 

“The closure of AMSA’s longs steel plants will have a ripple effect on downstream manufacturing, also affecting various other industries that depend on AMSA’s products.”

Rand York Casting CEO Justin Corbett previously warned that the closure of this business is devastating to the local steel industry and the country as a whole.

He said that at least 100,000 jobs in South Africa are at risk in the medium term due to AMSAs shutdown of its longs business.

“We expect in the short-term to lose an additional 50,000 jobs in South Africa and, in the medium-term, at least 100,000 jobs,” he said.

Solidarity said will support its members in the coming consultation process at AMSA and will use all legal and labour measures at its disposal to protect its members’ jobs and interests.

“We will not stand by and watch how thousands of families are robbed of their income because of the government’s failure,” Venter said. 

“Solidarity will not only fight this bloodbath on behalf of its members with the employers involved and with the government, but will also assist affected members with, for example, other job protection initiatives to help mitigate the impact of this government failure.”

Solidarity further warned that AMSA’s announcement is just the beginning of more serious job losses if the government does not take urgent action now to protect the industrial sector and to restore stability. 

“The time for promises and conferences is gone. We insist on real action taken by the government. Without real action, many more such dark days await South African workers,” Venter said.