ArcelorMittal SAs plans to shut down a century-old steel mill in South Africa are holding President Cyril Ramaphosas dream of fostering a 257 billion R4.8-trillion infrastructure boom to ransom. That plant and two others it wants to idle supply what builders need for the vaunted exponential rollout of power-transmission towers, rail lines and new roads projects that the leader says will turn the country into 'a construction site,' boost sluggish growth and provide much-needed employment.
They are also crucial to the jewels in South Africas manufacturing industry its auto plants and provide the specialty steel for the drills used in the countrys precious-metal mines that rank among the worlds biggest.
Rand York Castings, one of the nations largest steel fabricators, said it may move a unit that makes civil-engineering products it exports globally to India. Industry groups estimate that at least 100 000 relatively high-paying positions are at stake in South Africa, where almost a third of the labour force is jobless.
'Its a devastating blow to South Africas industrialisation and infrastructure-development goals,' said Lucio Trentini, the chief executive officer of the Steel and Engineering Industries Federation of South Africa , which represents more than 1 300 companies employing 170 000 people. 'It was a decision that we were hoping could be at best avoided, at worst delayed.'
They are also crucial to the jewels in South Africas manufacturing industry its auto plants and provide the specialty steel for the drills used in the countrys precious-metal mines that rank among the worlds biggest.
Rand York Castings, one of the nations largest steel fabricators, said it may move a unit that makes civil-engineering products it exports globally to India. Industry groups estimate that at least 100 000 relatively high-paying positions are at stake in South Africa, where almost a third of the labour force is jobless.
'Its a devastating blow to South Africas industrialisation and infrastructure-development goals,' said Lucio Trentini, the chief executive officer of the Steel and Engineering Industries Federation of South Africa , which represents more than 1 300 companies employing 170 000 people. 'It was a decision that we were hoping could be at best avoided, at worst delayed.'
