28 Feb The IDC is Deeply Concerned About Potential Job Losses at AMSA
Johannesburg. 28 February 2025. The Industrial Development Corporation of South Africa (IDC) acknowledges the significant challenges currently faced by ArcelorMittal South Africa (AMSA). The IDC is fully aware of the devastating effects that the potential job losses could have on the workers and their families, as well as the broader implications for the steel industry and the South African economy. The Corporation understands the critical importance of the steel sector in driving industrial growth, job creation, and economic stability, and shares in the concern for the well-being of the workforce affected by these difficult circumstances.
The Corporation has been at the forefront of efforts to address the challenges faced by the company. At the beginning of 2024, the IDC provided AMSA with working capital facilities totalling R1 billion. In early February this year, to support the company’s short-term sustainability while a long-term solution was being sought, the IDC extended the deadline to settle the remaining loan amount of R950 million from 1 June 2025 to 1 September 2026. Additionally, the government and the IDC approved a total facility of R380 million to postpone the closure of AMSA’s long-steel operations, which was initially scheduled for the end of January 2025. This measure was intended to ensure that AMSA operations continue to support upstream and downstream industries that rely on the long-steel business while long-term solutions are being sought. A key consideration was the supply of specialised steel to critical sectors of the economy including the automotive industry.
This strategic delay was implemented to facilitate ongoing discussions between government and other stakeholders, aimed at exploring viable solutions to the challenges faced by AMSA. The IDC’s proactive involvement underscores its commitment to supporting AMSA during these difficult times and its dedication to finding sustainable solutions for the steel industry.
It is in the interest of the IDC to see South Africa having a competitive steel industry, across the value chain, as part of its broader strategy to support the country’s industrialisation agenda. As Mmakgoshi Lekhethe, CEO of the IDC says, “The IDC remains committed to developing a sustainable and competitive steel sector in South Africa. We believe that strengthening this industry is critical not only for job creation but also for positioning South Africa as a key player in the global steel market. Our efforts are focused on ensuring that the local steel sector is resilient under local and global pressures and able to contribute meaningfully to the country’s industrialisation objectives and infrastructure build programme.”
The IDC is equally committed to supporting the downstream sector to ensure that it continues to receive a consistent supply of steel products, particularly for industries such as the automotive and productive sectors of the South African economy. The IDC recognises the importance of a robust downstream steel sector in driving economic growth, job creation, and the broader industrialisation of South Africa. Furthermore, the IDC remains dedicated to supporting smaller steel manufacturers, as their success is vital in maintaining a healthy and competitive steel industry that benefits all stakeholders.
While the provision of working capital has provided AMSA with temporary relief to enable its continued operations, the long-term solution lies in improving AMSA’s operational efficiencies, decarbonisation, and overall competitiveness within the industry. This is an intervention that requires the collective involvement of not only the IDC, but also key stakeholders such as government, private partners, and AMSA itself. A coordinated and comprehensive approach will be essential to ensure the long-term sustainability of AMSA and its role in the South African economy.
The IDC’s principles are rooted in supporting establishments or entities that promise long-term viability, drive increased economic activities, and stimulate competition. In line with these principles, the IDC remains committed to working closely with all relevant stakeholders to find a long-lasting and sustainable solution that will benefit AMSA, its employees, and communities in general.