/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

ActionSA expresses its concern that the closure of ArcelorMittal’s operations in Newcastle and Vereeniging, resulting in the loss of 3,500 jobs, is a stark reminder of the deep-rooted flaws in South Africa’s industrial and economic policies.

As the largest steel producer in the country, ArcelorMittal’s decision to wind down its Long Steel Business is a devastating blow to workers, their families, and the communities of Newcastle and Vereeniging, further compounding South Africa’s unemployment crisis.

With a staggering unemployment rate of 32.1%, South Africa simply cannot afford such losses. The impact of this closure will reverberate across industries and households, undermining any hope of economic recovery.

ArcelorMittal’s reasons for the closure—prolonged weak economic conditions, logistics and energy challenges, and unsustainable competition from low-cost imports—are clear indicators of the government’s failure to address the institutional issues crippling our economy. Even more concerning is the company’s acknowledgment that, despite engaging with the government to explore solutions, no sustainable path forward could be found.

The challenges cited by ArcelorMittal are not unique to the steel industry. Prolonged weak economic conditions, unreliable infrastructure, and escalating energy costs are common to many sectors, raising the question: which South African industry or business will fail next?

This closure lays bare the ineffectiveness of the current government. Despite promises of inclusive economic growth, the expanded cabinet has shown more interest in overseas travel and political posturing than in generating economic growth and creating jobs.

ActionSA calls for a comprehensive review and overhaul of South Africa’s industrial policies to ensure they are evidence-based and capable of addressing the country’s economic challenges. Policies like the Price Preference System (PPS) and export duties must be reassessed, as they have failed to support long-term industrial growth and stability.

This is more than just an industrial failure; it is a policy failure. South Africa urgently needs bold and decisive leadership to stabilize key sectors, create jobs, and rebuild the economy. ActionSA stands ready to lead the charge for meaningful reform and to hold the government accountable for its failures.

Issued by ActionSA Member of Parliament Alan Beesley