• The government has formed a special team to try to save ArcelorMittal’s Newcastle steel plant from closing.

• Many Newcastle residents depend on the steel plant for their income through rentals and small businesses.

The government has stepped in to try to save KwaZulu-Natal’s biggest steel plant from closing down.

The trade and industry department met with Eskom and other players in December after ArcelorMittal South Africa (Amsa) said it would shut its Newcastle factory.

Department spokesperson Yamkela Fanisi said they formed a special team to find solutions.

“The department notes with serious concern the announcement by ArcelorMittal South Africa to wind down its steel business at its Newcastle plant.

“In fulfilment of its mandate to work with the private sector in growing the local economy the department remains committed to working with AMSA to find a workable and lasting situation,” said Fanisi.

The team includes government departments, Eskom, Transnet and private companies. They will look at ways to make the steel business more competitive and environmentally friendly.

The closure would hit Newcastle hard. Many locals make money by renting rooms to Amsa workers or selling food and other items to them.

Amsais formerly a state owned company but was known as Iscor before it got privatised in the early 90s

Pictured above: ArcelorMittal South Africa.

Source: Facebook