Government Urges ArcelorMittal to Sell Langebaan Steel Operation Instead of Shutting it Down
ArcelorMittal has plans to close their steel plant in Saldanha, but instead, have been urged by the government to sell it to prevent damage inflicted on South Africa’s industrial capacity. The government is also cautious about decisions made in major corporations that could potentially lead to a great number of employees losing their jobs.
ArcelorMittal is known as a reputable steel producer in South Africa. The company announced plans to close its operations in Langebaan, a decision based on their company’s operations review, which took place in the early months of 2019.
The company also suggested that they were no longer able to compete in the export market, due to losing its structural competitive cost advantage. They have also suffered severe financial losses and don’t see their company recovering in the future. The winding down of the plant is set to be completed in the first quarter of 2020.
The Sight of Retrenchment Places Fear on the Industrial Sector
Possibly, one of the worst things that can happen to an employee, is to wait for the nearing day that he/ she will become jobless. Close to 1,000 employees are now facing retrenchment. The company has informed its employees about its planned retrenchment in July.
For now, the government is continuing to urge ArcelorMittal to sell their plant, as the fear of losing industrial capacity in the country hangs in the air. The possibility of Langebaan being disrupted or a community being displaced, is also a massive problem.
The government has recently offered support to AMSA, with the main purpose to avoid potential jobs from being lost. Sate-owned enterprises and public agencies have also offered a helping hand in recent months, which has regrettably failed.
Although selling the plant may not help secure the local steel or industrial industry altogether, it could aid in maintaining steel production capabilities in the country.
Get your business listed in our South Africa construction company directory today!