South Africa’s steel industry is bracing for fresh shock as ArcelorMittal South Africa (AMSA) prepares to cut more than 4,000 jobs, nearly half its workforce, in a move unions say will hit families and communities already under strain.
The Solidarity union said on Monday that AMSA had informed employees of plans for “mass retrenchments involving more than 4,000 jobs,” expanding beyond the previously announced 3,500 layoffs at Newcastle and Vereeniging to now include Vanderbijlpark, the firm’s flagship flat steel plant.
“This is not only about jobs. It is about families, schools, and entire communities that depend on the steel industry,” said Solidarity’s industrial head, Marius Croucamp. “The government has dragged its feet while livelihoods are being destroyed.”
AMSA, which produces 2.4 million metric tons of steel annually, about 4% of its parent group’s global output – has been bleeding red ink since 2023. The company reported a half-year headline loss of 1 billion rand ($55 million) this year, citing weak demand, rising electricity tariffs, high freight costs, and cheap imports from China.
Talks between AMSA and the government have stalled. The steelmaker has asked Pretoria to lower scrap export duties, introduce tariffs on imports, and ease power and logistics costs, but no firm agreement has been reached.
The looming cuts threaten Vanderbijlpark, once the beating heart of South Africa’s steel production, where thousands of households rely directly or indirectly on AMSA’s payroll. Workers say the loss could cripple one of Gauteng’s most industrialised regions.
South Africa’s steel sector, already battling shrinking demand and global oversupply, now faces its deepest employment crisis in over a decade. Industry analysts warn the layoffs could ripple across supply chains, hitting contractors, transporters, and small businesses linked to steel.
Read more on Short relief, long pain: Why car loans cost 36% more in South Africa
