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BL Premium reports that in a move signalling government’s resolve to keep ArcelorMittal SA’s (Amsa’s) long steel business afloat, the state will over the next year pick up the wage bill of the embattled unit, thereby delaying its closure and saving about 3,500 jobs.
“The temporary employee/employer relief scheme (TERS) has approved funding of nearly R417-million to sustain 2,982 employees over the next 12 months,” the Department of Trade, Industry & Competition said on Wednesday. It added: “As a condition of this support, Amsa is required to participate in the productivity SA turnaround and recovery programme. These interventions are not designed to provide direct financial relief to Amsa but are part of a broader strategy to protect SA’s steel industry and ensure the preservation of its industrial capacity. The government remains committed to exploring alternative solutions to sustain long steel production and safeguard jobs.” One of Amsa's anchor shareholders, the Industrial Development Corporation, has also invested R380m in the company, the department advised. The company indicated on Wednesday: “Amsa is engaging with stakeholders, including government, regarding funding and related matters to enable the deferral of the wind down of the longs business, as well as regarding the interventions previously announced. It should be noted that without agreement regarding the funding and related matters, the deferral of the wind down of the longs business will not be feasible. Accordingly, the wind-down process has not been stopped and is being managed in a manner that accommodates ongoing funding discussions.” Long steel products include rebar, wire rods, merchant bar, rails and sections.
- Read the full original of the report in the above regard by Kabelo Khumalo at BusinessLive (subscriber access only)
- Read too, AMSA keeps door open for rescue of steel mills, but wind-down continues for now, at Fin24 (subscription or trial registration required)
- And also, Almighty scrap breaks out between steel rivals as ArcelorMittal winds down, at Moneyweb
Get other news reports at the SA Labour News home page