ArcelorMittal has ‘small window’ for solutions – CEO

Verster met with Employment and Labour Minister Nomakhosazana Meth in Vanderbijlpark on Friday. 

The urgent meeting followed the steel manufacturer’s announcement last month to cut 3,500 jobs in Vanderbijlpark and Newcastle.

“We do not have any window to allow much more time for consultations and discussions. And the issue has been pushed to a decision by the company’s perspective and we now have a very small window to try and find a solution,” said Verster.

The steel manufacturer reported its worst performance in recent history last year, citing slow economic growth and high energy and logistics costs.

AMSA’s revenue for 2024 is expected to decline by over 5% compared to 2023, driven by reduced asset utilization and weaker net realized prices.

READ MORE : ArcelorMittal job cuts ‘to exacerbate’ Vaal economic woes

Verster added that imbalanced market participation played a significant role as well.

“We continue to advocate and request for a level playing field, we want a conducive environment for the manufacturing of steel.”

He further mentioned that they have mounting issues.

“The tax, price preference system, and the export laws, those need to addressed – we have complicated issues.”

However, the government remains hopeful that the retrenchment strategy can somehow be curbed.

“I can be a doom sayer and say it is inevitable that jobs will be lost, and it’s for that reason that we try to come together. And I appreciated the commitment from the CEO and his team to engage and see how best we can intervene as government,” said Meth, “So, there is hope.”  

The minister described the first meeting as productive but warned that more work is needed.

“We had a very fruitful discussions, it was our first meeting, and we can’t say conclusively now that we have a solution.

“We are joining other interventions and talks by government as led by the Department of Trade and Industry,” Meth added.  

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