Business Report writes that the Industrial Development Corporation (IDC) on Tuesday said it was stepping in to facilitate discussions aimed at preventing a significant downturn in the local steel industry.

This as ArcelorMittal SA (Amsa) prepares to halt its long-steel operations at the Newcastle and Vereeniging plants, potentially affecting over 3,500 employees. The IDC, which has a 6% stake in Amsa, last year endowed the struggling steel manufacturer with R1 billion to forestall the closure of the Newcastle plant. It expressed deep concern over the proposed mothballing of production facilities, particularly the Amras unit, stating that it was committed to exploring all viable options to avert mass retrenchments. Tshepo Ramodibe, IDC head for corporate affairs, said they were aware of the ongoing challenges within the global and domestic steel industries that have influenced Amsa’s position and operations. The IDC said it was actively engaging all relevant stakeholders to explore potential solutions. A source close to the discussions revealed that a working group comprising the Presidency, the Department of Trade Industry and Competition (DTIC), Amsa, the IDC and other stakeholders, was working around the clock to hold off the shuttering of the plants and subsequent job losses. “I do not think we are there yet. Amsa has made a public statement of its intentions to shut down the plants but all the parties are working to mitigate that. There won’t be immediate closure, there is no finality to this yet,” the source indicated.

• Read the full original of the report in the above regard by Banele Ginindza at Business Report
• Read too, DTIC intervention ‘insufficient’ to halt plant closure, at Cape Times

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