ArcelorMittal fast becoming a dead weight on industry
Virtual monopoly is protected at expense of downstream manufacturing in SA. An executive's response to claims by the steelmaker's CEO
There is no question that the South African steel sector is in crisis for all who are involved in it - by no means only its principal primary steel producer, ArcelorMittal South Africa. While we continue to blame this long-standing crisis on China, it is important to look in the mirror and ask ourselves what we have done to reinforce and strengthen South Africa's position. There is no dispute as to the contribution the local steel industry as a whole makes to GDP, to the creation of jobs both directly and indirectly and to the fiscus. It is imperative that we acknowledge and accept that South Africa operates in a global economy. It would be naive to believe the hypothesis that by importing steel we would be leaving both upstream and downstream industries at the mercy of the global steel market.What is the alternative - leaving the downstream manufacturing and steel fabrication industries at the mercy of a perpetual loss-making monopolistic single local primary steel producer? To thi...
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