ArcelorMittal South Africa To Shut Long Steel Operations, 4,000 Jobs At Risk

ArcelorMittal, the world’s second-largest steelmaker, announced Tuesday that it would close part of its South African operations, a move that a leading union says could cost roughly 4,000 jobs.

The closure targets the company’s long steel division, which produces essential construction materials like beams, wires, and train tracks.

“The long steel division has struggled for years due to a shrinking South African market, a failing railway system, and disruptive power cuts,” the company noted.

Efforts to secure the business through government negotiations and stakeholder discussions before a September 30 deadline ultimately failed. “Unfortunately, no solution has been concluded as yet,” ArcelorMittal South Africa (AMSA) said.

Long Steel Closure Highlights Economic and Industrial Pressures

Long steel represents about one-third of ArcelorMittal’s South African operations, while flat steel for automobiles, aeronautics, and household appliances makes up the remaining two-thirds.

AMSA confirmed that its flat steel business would continue to operate. Meanwhile, a Newcastle blast furnace, located 340 kilometers north of Durban, has been placed “into temporary care and maintenance” as long steel production winds down.

Trade union Solidarity warned that the closure would trigger “a retrenchment bloodbath that could hit multiple industries,” noting that steel is among the sectors affected by the U.S.’s 30% tariff on South African exports.

Solidarity deputy secretary-general Willie Venter added, “If large companies like AMSA can no longer keep their heads above water, the government must realise that the country is on the brink of an industrial disaster.”

South Africa’s Economy Faces High Unemployment and Industrial Strain

South Africa’s unemployment rate currently exceeds 30%, exacerbating the impact of job losses on the struggling economy.

AMSA highlighted ongoing challenges, including “subdued market demand, disruptive rail and electricity interruptions,” and competition from imports affecting domestic sales, which account for nearly 80% of its local production.

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As the steel sector reels from operational pressures and international tariffs, industry watchers warn that these closures may signal broader industrial turbulence for South Africa in the months ahead.

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