The recent announcement by ArcelorMittal South Africa (AMSA) of the closure of its long steel product business unit will severely impact the country’s manufacturing value chain. This closure threatens the stability and competitiveness of the South African automotive component manufacturing sector, which is an important contributor to South Africa’s economy.
Speaking to Channel Africa, Beth Dealtry, NAACAM Head of Policy and Regulatory Affairs shared that: “The closure of AMSA’s long steel business will have a significant impact on automotive component manufacturers, with a short-term risk of production line stoppages due to insufficient steel supplies.” Over the medium to long term, Beth further indicated that the closure threatens the overall competitiveness of SA automotive manufacturing, with the winddown resulting in a drop in vehicle local content levels and possible plant closures and job losses across the value chain.
NAACAM urges AMSA, the SA Government and all relevant stakeholders to work towards a sustainable solution that seeks to ensure stability across SA’s manufacturing sectors and preserves jobs.
Listen to the interview with Channel Africa here: https://lnkd.in/dAJN6pT9 #WeAreNAACAM #DrivingLocalisation
