The South African Federation of Trade Unions (SAFTU) unequivocally condemns ArcelorMittal South Africa’s (AMSA) decision to close its operations in Vanderbijlpark, an act that threatens to displace 3,500 workers and devastate the economy of the Vaal Triangle. This closure represents a catastrophic blow to workers, their families, and the broader value chains that rely on steel production. It also highlights the long-term consequences of the ill-conceived privatization of ISCOR in 1989, which marked the beginning of the systematic erosion of South Africa’s industrial and economic sovereignty.
Privatization and Its Consequences
ISCOR was once a pillar of South Africa’s industrial economy, operating as a state-owned entity that prioritized national development, job creation, and the local production of steel to meet the country’s needs. However, its privatization under apartheid-era neoliberal policies opened the door to corporate profiteering and a disregard for local developmental imperatives. The privatization of ISCOR created a precedent where private interests prioritized profit margins over the welfare of workers, industrial capacity, and the local economy.
The sale of ISCOR to ArcelorMittal turned a national asset into a corporate cash cow, with little oversight or accountability. Instead of strengthening the domestic steel industry, ArcelorMittal has systematically hollowed it out, choosing to import cheap steel rather than investing in local production capacity. Today, more than 70% of South Africa’s steel needs are met through imports, a shocking reversal of the self-reliant industrial base ISCOR once championed.
Impact of Closure on Workers and the Economy
The closure of the Vanderbijlpark operations will deepen the Vaal Triangle’s economic crisis, where unemployment and poverty are already rampant. The loss of 3,500 direct jobs will have a ripple effect throughout the region, affecting thousands of families and countless businesses that depend on the steel industry.
Beyond direct job losses, the closure will severely impact value chains reliant on local steel production. Sectors such as construction, manufacturing, automotive, and mining—which are already under strain—will face higher input costs and reduced competitiveness due to the reliance on imported steel. Small and medium enterprises in these sectors, many of which are based in or supply to the Vaal Triangle, will bear the brunt of this decision.
Since ISCOR’s privatization, the South African steel industry has shed tens of thousands of jobs. The Vaal Triangle, which once thrived as an industrial hub, has seen its local economy spiral into decay, with soaring unemployment and declining infrastructure. The additional 3,500 job losses will accelerate the deindustrialization of the region and exacerbate the social crises of poverty, inequality, and crime.
SAFTU’s Demands
SAFTU calls for an immediate halt to the closure of AMSA’s Vanderbijlpark operations. Furthermore, we demand:
1. Renationalization of South Africa’s steel industry: It is clear that privatization has failed. The steel industry must be reclaimed as a public asset to safeguard jobs, rebuild local production capacity, and restore South Africa’s industrial sovereignty.
2. A comprehensive industrial policy: The government must prioritize investment in steel production and manufacturing, providing the necessary support to rebuild value chains and reduce reliance on imports.
3. Worker-centered solutions: The livelihoods of workers and their families must be protected. SAFTU calls for state intervention to prevent job losses, including subsidies or alternative employment programs where necessary.
4. An investigation into AMSA’s practices: The importation of steel by AMSA, coupled with its lack of investment in local capacity, warrants a thorough investigation into its operations and whether its practices align with South Africa’s economic interests.
Conclusion
ArcelorMittal’s decision to shut down its Vanderbijlpark operations is not just a corporate decision—it is a national crisis with roots in failed neoliberal policies that prioritized privatization over public good. South Africa cannot afford to lose more jobs, industrial capacity, and economic sovereignty. SAFTU stands in solidarity with the affected workers and communities and will fight to ensure that the country’s industrial future is not sacrificed for short-term profits
