Trade union Solidarity today said in a public presentation to the International Trade Administration Commission (Itac) that urgent intervention was needed, or the South African steel industry was at risk of collapse.

According to Marius Croucamp, deputy general secretary of the Metal and Engineering Industry at Solidarity, the steel industry in South Africa is being subjected to unfair trade practices. “Chinese steel is subsidised in China, with the result that steel is dumped on a large scale in South Africa, which places immense pressure on our steel producers because the playing field is not level. It is crucial that preventative measures should be set in place now to limit the dumping of Chinese steel in South Africa,” Croucamp said.

Croucamp furthermore said that communities function around steel plants. About 2 200 people lost their jobs when Evraz Highveld Steel had to close its doors due to these imports. The closing of Highveld Steel actually affected a further 13 000 job opportunities in the Witbank area. “The steel industry provides about 66% of all jobs in the Vaal Triangle area. If a steel plant such as ArcelorMittal, which is under immense pressure, has to close its doors as well, it would bring the local community and the economy to its knees,” Croucamp said.

In 2015 alone the South African steel industry suffered about 11 000 job losses.

Issued by Solidarity