Gauteng govt concerned about looming job losses at ArcellorMittal
The company recently announced that it would close its plants in Vereneeging and Newcastle due low demand for its products and a difficult business environment among many other reasons.
Gauteng Finance MEC Lebogang Maile (centre) during a press briefing on 7 January 2025. Picture: @GautengTreasury/X
JOHANNESBURG - The Gauteng government says it is concerned about looming job losses from steel-making company, ArcellorMittal.
The company recently announced that it would close its plants in Vereneeging and Newcastle due low demand for its products and a difficult business environment among many other reasons.
The move is likely to lead to almost 3,500 people losing their jobs.
At a media briefing on Tuesday, the Gauteng government touched on the matter.
ArcellorMittal was formed about a century ago in Pretoria as a state-owned company called, Iscor.
In 1989, the steel company was privatised, with its shares being listed on the Johannesburg Stock Exchange (JSE).
Gauteng Finance MEC Lebogang Maile said that the company had played a key role in the provincial and national economy.
"As the Gauteng provincial government, we are very concerned and worried about the state of the economy and the fact that some of the sectors, like this steel sector, is taking long to recover and as a result there are retrenchments. It's regrettable and we are deeply saddened because it's not going to help in solving the problem of poverty, unemployment and not helping towards the revival of the economy."
Maile said that the Gauteng government was looking at ways it could work better with the private sector operating in the province.