It is reported that the closure of the ArcelorMittal South Africa’s Saldanha Steel plant will be so catastrophic it will have a domino effect all along the West Coast, crippling the economy and leaving thousands jobless.

As per report, if ArcelorMittal SA carries out its threat to shut down the plant it would bring the local community to its knees, leaving 4000 people jobless, for starters.”

The National Union of Metalworkers of SA (has lambasted ArcelorMittal’s decision, calling the announcement provocative and unacceptable.

Numsa general secretary Mr Irvin Jim said workers’ jobs were under threat due to a dispute borne out of both companies’ “ignorance”.

He said it was irresponsible to publicly announce the plant’s closure before the end of arbitration proceedings and before notifying the union.

Numsa will on Tuesday meet Kumba to “get their side of the story” before requesting a bilateral meeting with both parties.

ArcelorMittal SA spokesman Mr Themba Hlengani said the unions were informed when ArcelorMittal received the letter from Kumba threatening to halt iron ore deliveries if company demands were not met.

A contractual dispute between steel giant ArcelorMittal and iron ore supplier Kumba Iron Ore came to a head on Friday. Kumba had announced it would no longer supply ArcelorMittal unless it paid 48 hours prior to delivery of the ore from the Sishen Iron Ore Company, a Kumba subsidiary.

ArcelorMittal responded by announcing the immediate closure of the Saldanha plant and the curtailment of all steel exports. It is expected 3,000 to 4,000 jobs, out of a total of over 10,000, will suffer.

(Sourced from capeargus.co.za)