Trade and Industry Portfolio Committee to engage Minister on impact steel plant closure in Saldanha
The Portfolio Committee on Trade and Industry resolved to further engage the Minister of Trade and Industry on the impact of the closure of the ArcelorMittal South Africa’s Saldanha Steel plant and associated job losses, which will have a severe impact on South Africa’s industrialisation drive and on the local economy.
At a committee meeting earlier this week, committee Chairperson Mr Duma Nkosi expressed the committee’s concern about the economic disadvantages the closure will have on ordinary South Africans, especially this area.
The committee’s decision follows an engagement with the departments of Trade and Industry (DTI) and of Economic Development in November last year, where the committee expressed its concerns around the negative impact of the closure on the broader industrialisation drive, on jobs, and on the broader economy.
At the time, the DTI informed the committee that AMSA’s announcement came in spite of significant efforts by government and public agencies to provide support to AMSA, with a view to preventing job losses and ensuring the continued operation of Saldanha Steel.
In addition, over the past few years the government has approved AMSA’s applications for extensive trade support, including safeguarding trade duties and the designation of AMSA steel for state infrastructure projects.
It had also considered ways to further reduce ArcelorMittal’s administrative costs, said Mr Nkosi.
“We welcome these interventions and the committee reemphasised that failure to find an amicable solution, given the support already provided to AMSA, will have a severe impact on industrialisation and on the broader economy.
We want to assure the people of the area that we take your plight seriously and will continue to look for alternative solutions,” the Chairperson said.
The committee will be engaging with the Minister of Trade and Industry, Mr Ebrahim Patel, to ascertain the progress made in reaching such a solution and the further actions government could take to mitigate the impact of these developments, as the committee is of the view that the retention of jobs is of the utmost importance.
For media enquiries or interviews, please contact the committee’s Media Officer:
Name: Rajaa Azzakani
Tel: 021 403 8437
Cell: 081 703 9542
E-mail: razzakani@parliament.gov.za
