ArcelorMittal South Africa Set to Lay Off 4,000 Workers as Steel Crisis Deepens
ArcelorMittal South Africa (AMSA) is expanding consultation on retrenchments, now expected to affect over 4,000 workers, nearly half its workforce. The cuts now include its flagship Vanderbijlpark flat steel plant, worsening an already dire economic outlook for the steel sector.
Union Signal and Government Inaction
The Solidarity union confirmed the retrenchment notice would impact the long steel plants in Newcastle and Vereeniging, as well as Vanderbijlpark. AMSA recently reported a headline loss of R1 billion (USD $56 million) over six months, blamed on weak demand, import competition, and unaffordable energy costs. Negotiations with government, including reduced scrap export duties and potential tariffs, have made little progress. Reuters
Steel Sector Fallout
This expansion of job cuts follows delays to plant closures and a failed bailout. Economic Times reports that the steel crisis may also have spillover effects, including risks to suppliers, related mine operators, and local communities.
Industry Retrenchment Echoes Across Supply Chains
As AMSA struggles, downstream operations feel the strain. Assmang, a major iron ore supplier, is considering closing its Beeshoek minea move that could cost ~688 jobs following AMSA’s termination of supply contracts. Reuters
Next Steps
- Unions vow to resist job cuts, demanding government intervention.
- Without significant support or restructuring, the steel sector may face irreversible contraction.
AMSA’s plight reflects broader structural challenges in South Africa’s industrial base calling for urgent policy action to revive competitiveness and secure livelihoods.
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By Fidelis News Staff | 2 September 2025
