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The Newcastle Business Chamber and the Association of South African Chambers has said that potential 3 500 job from ArcelorMittal South Africa’s (Amsa) winding down the Longs Business will have a devastating impact on the South African and KwaZulu-Natal economy.
Amsa on Monday announced that it was left with no alternative but to proceed with the winding down of the Longs Business, despite their best efforts and the government help, it was not enough to sustain the business, and at year-end.
Morne Seaman, president of the Newcastle Business Chamber, yesterday said that in 1969, the government announced the establishment of the third Iscor Works in Newcastle (Amsa).
“As a direct result of Iscor’s presence, Newcastle rapidly developed into an industrial town and became a key growth point in Northern Natal. In Newcastle, almost anyone on the streets has either worked for Amsa or knows someone who has,” he said.
Seaman added that the impact on Amsa employees will be the most profound. “The prolonged uncertainty surrounding the potential closure of Amsa Newcastle must have taken a tremendous toll on the employees and their families. With unemployment already at a high level, many long-serving employees will face significant challenges in finding new employment,” he said.
Seaman said that the closure of Amsa Newcastle will have a profound impact on both livelihoods and businesses in Newcastle and surrounding areas. — IOL
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