There has been widespread relief following ArcelorMittal South Africa’s, AMSA, decision to keep the doors open at their Newcastle plant with Mayor, Cllr Xolani Dube, expressing his gratitude.
The news followed extensive talks between AMSA, the Mayor, municipal management and other key role players.
The town was left stunned when AMSA said in November 2023 that the operations would be wound down in Newcastle (and at the Vereeniging Works, and ArcelorMittal Rail and Structures.)
Fear spread that the huge job losses would have a hugely negative impact on the already fragile local economy.
The bombshell announcement followed AMSA releasing its financial results ending June 30, 2023, which showed a loss of R488 million against earnings of R3,025 million.
The coke ovens at the Newcastle Works were to be excluded from the planned winding down of the long steel production.
Welcoming last week’s decision, Mayor Dube said he was ‘humbled by the wonderful news that has been officially communicated by AMSA with regards to the continued operations of the Newcastle Steel Works.’
“The decision will also bring comfort to the municipality, as the very same employees are also customers of the municipality in terms of the consumption of basic services. The continued operation of the local works indicates that Newcastle is still open for business and will attract further investment that will lead to an agglomeration of economies”.
Mayor Dube described AMSA as ‘a key performer in Newcastle and the municipality is dedicated to ensuring business retention and the expansion of local businesses.’
Newcastle Growth Coalition reacts
Johan Pieters and Romano Raghoo of the Newcastle Growth Coalition stated they are ‘highly satisfied with the news that AMSA would keep Newcastle ArcelorMittal’s gates open.’
Upon hearing the news of the closure in November 2023, the Newcastle Growth Coalition set up a meeting with CEO Kobus Verster and senior management of Trade & Investment KwaZulu-Natal, TIKZN
“Robust discussions took place where AMSA, the Newcastle Growth Coalition, and TIKZN committed to ensuring that Newcastle Works do not close down. Seven months later, we are very positive about the good news and proud of all the players who ensure that Newcastle will remain open. It is good news for the communities of Newcastle, Northern KZN, KZN, and SA. Let’s work together and grow our city even more,” Pieters told the Advertiser.
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