In a letter to trade union Solidarity the management of Highveld Steel in Witbank (Emalahleni) announced that Chinese company, International Resources Limited (IRL), would no longer acquire the ailing steel company. The union has therefore expressed its apprehension over the company and concern for its members at the company.

According to Solidarity Deputy General Secretary Marius Croucamp, Highveld Steel’s management indicated that IRL did not comply with the provisions of the business bailout plan underpinning the sale.

“Unless Highveld Steel’s management soon finds another buyer or obtains sufficient funding to get the mill going again, the company, in terms of the bailout plan, would have to sell off its assets,” Croucamp said.

Croucamp said Solidarity would support its members affected by the process by ensuring, among other things, that in going forward, the company follows correct procedures.

“Most of Highveld Steel’s workers are currently undergoing retraining as part of a training layoff scheme, offering them temporary income while being retrained. Meanwhile, we will be in regular talks with the employer to mitigate the impact on our members as far as possible,” Croucamp said.

Solidarity represents approximately 400 of Highveld Steel’s 2242 employees.

Issued by Solidarity