Mining 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.