Megaproject

Mininig Weekly

Memsa Calls For Urgent Government Action Following Arcelor Mittal Plant ClosuresMining Equipment Manufacturers of South Africa (MEMSA) expresses deep concern over the recent closures of ArcelorMittal steel plants, highlighting critical challenges in South Africa’s manufacturing sectors. As industries are deeply interconnected, the fallout from these closures reverberates far beyond the steel industry, posing a severe threat to the sustainability of mining equipment manufacturing and other industrial sectors. MEMSA calls on the Government to urgently address the policy and leadership gaps that have led to this crisis. The closure of ArcelorMittal plants, South Africa’s largest steel producer, serves as a wake-up call to the devastating impacts of de-industrialisation. Steel is a critical input for the manufacturing industry, and its local availability directly affects sectors like mining equipment manufacturing, construction, and automotive production. The ArcelorMittal closures mark a turning point that we, cannot ignore. The knock-on effects threaten localisation, jobs, and the broader industrial economy, demanding immediate intervention. South Africa’s mining equipment manufacturers rely heavily on the availability of locally produced steel. With the closure of key steel plants, manufacturers face rising costs from importing raw materials, which undermines their competitiveness and disrupts supply chains. These challenges weaken efforts to localise production and place additional strain on businesses already grappling with a turbulent economy and inconsistent policy implementation. MEMSA has actively contributed to steel sector policy through submissions to the Steel Master Plan (SMP). These submissions highlighted industry-wide concerns and presented actionable recommendations to support steel manufacturing, boost localisation, and incentivise growth within industrial sectors. The lack of follow-through on these recommendations underscores systemic gaps in translating policy proposals into tangible outcomes. At the heart of the solution lies a powerful ally, government policy. Without protective measures and strategic interventions, local manufacturers risk being swept away by global competition and supply chain vulnerabilities. It’s time to prioritise policies that empower local manufacturers, safeguard jobs, and stabilise the backbone of our industrial economy. The need for strong policy support cannot be overstated. Stabilising the steel industry isn’t just about one sector; it’s about securing the future of local industries and protecting jobs across the board. As a sector, we must advocate for policies that protect our interests and drive national growth. This is a moment to elevate our collective voice because silence costs us more than we can afford. MEMSA urges the Honourable Minister of Trade, Industry, and Competition, Mr. Parks Tau, to engage directly with stakeholders and prioritise the preservation of South Africa’s industrial base. Localisation policies and incentives for manufacturers must be restored and expanded to shield the economy from further de-industrialisation. Competing with cheap imports—often subsidised by foreign governments—undermines the viability of local industries. We need policies that prioritise local over foreign steel. The government must move beyond reactive measures and demonstrate proactive leadership. Our industries can no longer afford a cycle of neglect. Ensuring the resilience of domestic manufacturers, particularly mining equipment manufacturers, is pivotal for achieving inclusive economic growth. To address the crisis, MEMSA calls on the Department of Trade, Industry, and Competition (DTIC) to: The challenges we face are not insurmountable, but solutions require action. Government intervention is no longer optional—it is essential. The closures at ArcelorMittal remind us of the fragility of even the most established industries. But they also present an opportunity to demand better, smarter, and bolder policies. By working together—government, local manufacturers, and industry leaders—we can build a future where local industries thrive, supply chains remain resilient, and jobs are preserved and created. Let’s champion the policies and protections to ensure our industry’s sustainability and position us for growth. The future of manufacturing—and the livelihoods tied to it—depends on what we do next. This moment calls for leadership and ingenuity. Yes, the closures at ArcelorMittal are a significant disruption, but they’re also a reminder of the opportunities to adapt, innovate, and lead. The recent events must serve as a clarion call to safeguard South Africa’s industrial base. MEMSA remains committed to working alongside Government and stakeholders to advocate for policies that support manufacturing, sustain localisation, and revitalise the economy. Failure to act decisively risks the collapse of manufacturing industries but also the erosion of South Africa’s capacity to innovate and create sustainable jobs. As clusters, associations and advocacy groups, we must unite in a collective call to action, recognizing that the ripple effects of these issues could disrupt supply chains, undermine industrial growth, and threaten thousands of jobs across our economy. We request Honourable Minister of Trade, Industry, and Competition, Mr. Parks Tau, to avail himself to meet with our stakeholders urgently. Together, we must amplify our voices, and demand tangible solutions to safeguard its future. We cannot afford complacency—this challenge affects us all. Let us stand together for sustainable development and industrial resilience.

mining

Jan 14, 2025

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