Steel has many uses - including in the construction of buildings, bridges; cars; and so on…

The Steel Industry is part of the Manufacturing Sector AND it CONTRIBUTES about 1.5% to our GDP. The Steel industry is the heart of the economy in Newcastle, KZN.

One of the biggest steel producers in South Africa is called ArcelorMittal. And it’s decided to CLOSE DOWN the Steel Business in Newcastle and Vereeniging it’s called the Longs Steel Business. They had announced the intention to close it down last year already - But made a u-turn; after opposition of the decision, by a number of Stakeholders, including Unions that have been worried about JOB LOSSES.

So the company HAD SAID that - it would work on, turning the business around. But clearly - that has proven, to be an extremely difficult task.

ArcelorMittal HAS FALLEN DEEPER, into a loss making position, due to these major factors: Lower global steel prices and that means less revenue. They are also paying more for electricity and logistics. And then there’s, competition from lower priced imports, particularly from China.

They’ve been in talks with Government, since 2023 - to try and create policies that would create fair competition between South African made steel AND imported steel - where imports don’t CANNIBALISE our home made steel. But they’re saying that NOTHING has come out - to STRUCTURALLY CHANGE the Industry FUNDAMENTALS.

 

Steel Imports - what is bought by South Africa from other countries - have increased by almost 50% since 2018. But the Steel Exports - what we sell to other countries - have REDUCED by 40%.

Steel has many uses - including in the construction of buildings, bridges; cars; and so on&hellip;
The Steel Industry is part of the Manufacturing Sector AND it CONTRIBUTES about 1.5% to our GDP. The Steel industry is the heart of the economy in Newcastle, KZN.
One of the biggest steel producers in South Africa is called ArcelorMittal. And it&rsquo;s decided to CLOSE DOWN the Steel Business in Newcastle and Vereeniging it&rsquo;s called the Longs Steel Business. They had announced the intention to close it down last year already - But made a u-turn; after opposition of the decision, by a number of Stakeholders, including Unions that have been worried about JOB LOSSES.
So the company HAD SAID that - it would work on, turning the business around. But clearly - that has proven, to be an extremely difficult task.
ArcelorMittal HAS FALLEN DEEPER, into a loss making position, due to these major factors: Lower global steel prices and that means less revenue. They are also paying more for electricity and logistics. And then there&rsquo;s, competition from lower priced imports, particularly from China.
They&rsquo;ve been in talks with Government, since 2023 - to try and create policies that would create fair competition between South African made steel AND imported steel - where imports don&rsquo;t CANNIBALISE our home made steel. But they&rsquo;re saying that NOTHING has come out - to STRUCTURALLY CHANGE the Industry FUNDAMENTALS.
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Steel Imports - what is bought by South Africa from other countries - have increased by almost 50% since 2018. But the Steel Exports - what we sell to other countries - have REDUCED by 40%.

Experience Joburg's most fun breakfast show. Listen to Anele and the Club on 947 every Monday to Friday from 06:00 to 09:00 on 947 FM or streaming online on 947.co.za.

Experience Joburg's most fun breakfast show. Listen to Anele and the Club on 947 every Monday to Friday from 06:00 to 09:00 on 947 FM or streaming online on 947.co.za.