New Mittal CEO welcomed: DA demands government saves Vaal steel jobs

The Democratic Alliance welcomes the appointment of new CEO for ArcelorMittal SA (AMSA), Mr Willem de Klerk, who will take up the helm at the embattled steel giant from 1 September 2016.

However, taking over the top job at AMSA will prove to be a difficult task as the company recently announced a record loss of R8.5 billion for 2015 and share prices plummeted in December last year after former AMSA CEO Paul O’Flaherty resigned.

In announcing the appointment of Mr de Klerk, the Board also sets high expectations in terms of Government relations and core stakeholder relations for AMSA. AMSA’s tightrope act in dealing with a Government seemingly deaf to the need to save steel jobs in the midst of a flood of cheap and state-subsidized Chinese imports was clear in its Board’s announcement of De Klerk’s appointment.

We are therefore calling on Government to provide clarity on steel sector policy and to urgently intervene to save steel industry jobs in the Vaal region as the entire economy of the Vaal region rests on the steel sector.

Government must heed the call of AMSA in the Vaal for local designation of steel in infrastructure projects as this is vital for the long-term sustainability of not only AMSA, but the entire steel industry in South Africa.

Government holds the key to the long-term viability and profitability of the South African steel industry – which employs about 190 000 people countrywide – and AMSA’s engagement with it is seen as central.

R890 billion has been allocated by Government over the next three years to infrastructure projects, but to date Government has failed to strategically designate locally-made steel to any of these projects.

It is of paramount importance that Government communicate its strategy regarding the steel industry and how it plans to ensure jobs are secured for the 8000 AMSA employees in the Vaal region.