Trade, Industry and Competition on engagements with ArcelorMittal South Africa (AMSA) to safeguard the steel industry and preserve industrial capacity

The South African government continues to engage with ArcelorMittal South Africa (AMSA) to prevent the planned wind-down of the longs steel plant in Newcastle and to recalibrate the steel industry’s role in the South African economy.

To support this objective, the dtic and the Industrial Development Corporation (IDC) provided financial assistance of R380 million to AMSA in February 2025, in addition to the R1 billion working capital facility extended by the IDC in June 2024.

Furthermore, the Temporary Employee/Employer Relief Scheme (TERS) has approved funding of nearly R417 million to sustain 2,982 employees over the next 12 months. As a condition of this support, AMSA is required to participate in the Productivity SA turnaround and recovery programme.

These interventions are not designed to provide direct financial relief to AMSA but are part of a broader strategy to protect South Africa’s steel industry and ensure the preservation of its industrial capacity. The government remains committed to exploring alternative solutions to sustain long steel production and safeguard jobs. A technical working group, comprising key stakeholders including the Presidency, the dtic, the Departments of Employment and Labour, Electricity and Energy, Transport, National Treasury, the IDC, the South African Revenue Service, Eskom, Transnet, and AMSA, continues to address policy-related challenges affecting the steel industry’s operations.

The South African government considers this matter a priority and remains steadfast in its efforts to secure a long-term and sustainable future for the country’s steel sector.

Media enquiries:

Yamkela Fanisi – Ministerial Spokesperson Department of Trade, Industry and Competition 
E-mail: YFanisi@thedtic.gov.za
Mobile: 076 034 6551

Bongani Lukhele – Director: Media Relations 
Tel: (012) 394 1643
Mobile: 079 5083 457
WhatsApp: 074 2998 512
E-mail: BLukhele@thedtic.gov.za

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