state of the stainless steel nation
South Africa’s manufacturing crossroads: A path to revival
South Africa’s stainless steel and manufacturing industries face a pivotal moment. The potential closure of ArcelorMittal South Africa’s (AMSA) long-products division is a major challenge, with the risk of job losses and further de-industrialisation. However, this crisis also presents an opportunity for renewal and strategic action. In fact with the right interventions, South Africa can turn the tide, reclaim its industrial strength, and secure a sustainable future for its workforce. This column from Sassda Executive Director, Michel Basson explores the challenges, the impact of AMSA’s potential closure, and the urgent steps needed to revitalise the sector...
One of the most pressing concerns for the steel sector in South Africa is the potential closure of ArcelorMittal South Africa’s long-products division, which could lead to the loss of up to 100 000 jobs. The shutdown of this major steel producer would not only impact direct employees but also disrupt supply chains and industries reliant on specialised steel products. Without immediate intervention, the consequences for South Africa’s industrial landscape could be devastating. In essence this is an example of de-industrialisation. De-industrialisation refers to the process of migrating an economy from being manufacturing-based economy to a service-based economy. This normally involves a decline in the importance, wellbeing and contribution of the manufacturing sector to the overall economy, often accompanied by a growth in the service sector. Amongst some there is still doubt that this process is taking place in South Africa. In broad terms de-industrialisation shows the following characteristics: 1. Decline of Manufacturing Employment: This is indicated by a decrease in the number of jobs in the manufacturing sector. Any South African, if asked, would agree that this is true in the country.
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Issue 1 – 2025
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