Closure of Amsa’s longs business likely to introduce uncertainty for downstream customers: Itac

The decision by ArcelorMittal South Africa (Amsa) to wind down its Newcastle longs business operation, which produced a wide range of high-quality steel profiles, is a sad occasion in the more than five-decade life of the steelworks, the International Trade Administration Commission of South Africa (Itac) said. 

“The decision is likely to not only affect the more than 3,000 workers directly and indirectly and the economic life of nearby communities, but also likely to introduce supply chain uncertainty for many downstream customers reliant on output from Newcastle,” Itac said. 

Itac, which fosters economic growth and development and promotes investment and employment in South Africa, said the decision by Amsa came nearly six years after an earlier decision to wind down the Saldanha operations.  

Amsa had, in successive stock exchange news service announcements, noted it had been engaged in ongoing discussions since December 2023 with the government on “structural issues” affecting its longs business.  

These had been aimed at exploring alternatives and policy support to address structural constraints facing the sector.

“To the degree relevant and within the ambit of our work the commission has also been part of these discussions. Especially as they relate to the regulation of the export of scrap metal through the price preference point system (PPS) which Itac administers and regarding progress on trade measures initiated and under investigation by the commission in response to allegations of unfair and injurious import competition,” Itac said. 

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