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BL Premium reports that businesses in the towns of Newcastle and Vereeniging are reeling over the imminent closure of ArcelorMittal SA’s (Amsa’s) plants in the two towns.
The move is set to devastate the local economies and hurt municipal revenues. On Monday, Amsa, which is SA’s largest steel producer, shocked its employees by announcing that its production at the Newcastle Works was expected to come to a halt at the end of this month, with the wind-down of the remaining production processes set to be completed in the first quarter of the year. Morne Seaman of the Newcastle Sakekamer reacted by saying: “The most significant impact would primarily affect logistics companies, engineering businesses and downstream companies that rely on the byproducts for manufacturing their products.” Seaman went on to lament: “Unfortunately, Newcastle lacks large towns or cities nearby where residents could commute for work. Consequently, families may be forced to leave the area in search of better opportunities. This migration will likely trigger a ripple effect, impacting property prices, retail businesses, and the broader local economy. The closure of Amsa Newcastle will have a profound impact on both livelihoods and businesses in Newcastle and the surrounding areas.” In the Vaal, the Vereeniging Works has been in operation for more than a century, with local businesses very concerned over the closure of the plant. Jaco Verwey of the Golden Triangle Chamber of Commerce said the move would devastate the Vaal’s economy.
- Read the full original of the report in the above regard by Jacob Webster & Kabelo Khumalo at BusinessLive (subscriber access only)
- Read too, Newcastle reels as ArcelorMittal SA’s steel factory closure looms, at Mail & Guardian
- And also, ArcelorMittal job cuts raise concerns over South Africa’s, Newcastle’s economic stability, at Business Report
Get other news reports at the SA Labour News home page