KwaZulu-Natal's government intensifies efforts to rescue Tongaat Hulett and ArcelorMittal SA, aiming to protect thousands of jobs and stabilise vital sectors of the economy amid rising financial pressures.
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KwaZulu-Natal’s provincial government says efforts are intensifying to rescue struggling industrial giants Tongaat Hulett and ArcelorMittal South Africa in a bid to protect thousands of jobs in the province and stabilise key sectors of the economy.
Speaking following high-level engagements in the King Cetshwayo District, KwaZulu-Natal MEC for Transport and Human Settlements and Leader of Government Business, Siboniso Duma, said the government remained encouraged by the intervention of Trade, Industry and Competition Minister Parks Tau.
Tau spent two days in the district engaging stakeholders on rescue plans for both companies, which have faced mounting financial and operational pressures.
Duma said the provincial government, traditional leadership, and national government were aligned in efforts to prevent the collapse of Tongaat Hulett, warning that liquidation could have devastating consequences for the sugar industry and rural communities.
“As the custodian of the Sugar Act, Minister Tau remains opposed to the liquidation of Tongaat Hulett and is determined to save more than 40,000 jobs,” Duma said.
The matter is expected to return to the KwaZulu-Natal High Court on June 18.
According to Duma, the rescue strategy is being guided by the Sugar Industry Master Plan and includes plans to establish a new ownership structure aimed at increasing participation by small-scale farmers and workers.
The intervention also involves close consultation with the Zulu monarchy. Zulu Royal Chancellor Inkosi Malusi Zondi, acting on behalf of King Misuzulu kaZwelithini, has been tasked with maintaining engagements with government and stakeholders.
“The focus is on ensuring full participation of indigenous people on traditional land, as owners, in the entire value chain of sugarcane,” Duma said.
Government is also moving to stabilise ArcelorMittal South Africa’s Newcastle operations amid concerns over possible closures and job losses.
Duma revealed that the rescue plans being discussed include a full takeover by the Industrial Development Corporation through a proposed deal valued at more than R8.5 billion.
“The greater focus is on saving 3,500 jobs, mainly by local people, and 100,000 indirect jobs dependent on the steel value chain,” he said.
He added that Inkosi Zondi had presented a potential bidder interested in taking over the company.
The Newcastle steel plant has long been regarded as a critical economic driver in northern KwaZulu-Natal, supporting a wide network of suppliers, transport businesses, and downstream industries.
Duma said the government would continue engagements with traditional leaders in rural areas to ensure that amakhosi remain central to economic development initiatives and foreign direct investment efforts.
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