VAAL TRIANGLE - Manufacturing Circle says ArcelorMittal South Africa’s decision to continue operating its long-steel unit has given the country an opportunity to re-energise local manufacturing. However, according to Manufacturing Circle Executive Director Philippa Rodseth, this “vital window of opportunity” to stimulate the demand side of the economy and support about 270 000 jobs needs to be supported by industry, government and labour. Rodseth wrote in the Business Day newspaper that this can be achieved if our factories’ fixed costs are absorbed over greater levels of volume, which, in turn, will allow us to be competitive in export markets. She said should we get this right, we will have a reinvigorated, capacitated steel value chain that is able to compete internationally. This comes after ArcelorMittal South Africa in February said it will delay shutting its business that makes long-steel products and cutting as many as 3,500 jobs by six months after consulting with the government and the nation’s freight company.
PHOTO: (Supplied)
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