Devastating consequences of ArcelorMittals Newcastle furnace closure: A call to action

Show Voice Options The closure of the Newcastle furnace will result in the loss of over 1 300 direct jobs, with an estimated 2 200 indirect jobs at risk in the surrounding communities. This will exacerbate the already dire unemployment situation in South Africa, particularly in the rural areas where job opportunities are scarce. The economic spin-offs of the closure will be felt far and wide, with local businesses, suppliers, and service providers also facing financial ruin. Play Video The steel industry is a critical component of South Africa's economy, and the closure of the Newcastle furnace will have a ripple effect throughout the sector. The motor manufacturing industry, which relies heavily on locally produced steel, will be severely impacted, threatening the very existence of this critical sector. The consequences of this closure will be felt for generations to come, as the skills and expertise developed over decades are lost forever. The threatened closure of Amsa’s Newcastle Furnace repeats a similar crisis when Amsa did likewise with its Saldanha Bay operations five years ago. Amsa’s possible exit would have similar catastrophic effects for its plants in Richard’s Bay and Vereeniging. With a 41.09% unemployment rate, GDP growth barely breaking 1% and years of devastating de-industrialisation; this would be a blow we simply cannot afford.