South Africa

A proudly South African company, ArcelorMittal South Africa supplies over 60% of the steel used in the country and is Africa’s largest steel producer. Headquartered in Vanderbijlpark, Gauteng, we have the capacity to produce approximately 5.5 million tonnes of steel products annually, and also export to sub-Saharan Africa and elsewhere. In 2015, we employed 9,448 people on a permanent basis, and estimate that directly and indirectly our activities support over 90 000 jobs across South Africa.

We produce flat carbon steel products at both our Vanderbijlpark Works and Saldanha Works sites, including slabs and heavy plate as well as hot-rolled coil, cold-rolled and coated products for the construction, piping, packaging and automotive industries. We also produce long carbon steel products at our Newcastle site, primarily for the construction industry, including bar, billets, blooms, hot-finished and cold-drawn seamless tubes, window and fencing profiles, light, medium and heavy sections, rod and forged products. We also have a Coke and Chemicals operation, which produces commercial grade coke for use by the ferro-alloy industry, and processes steelmaking by-products.

Stakeholder engagement has been a core element of our approach to corporate responsibility and sustainability in South Africa for many years, and this has been a key element of our sustainability reporting here since 2009. We have been publishing an 'integrated' report combining our financial and sustainability performance since 2013.  In 2014, we furthered our understanding of our contributions to sustainable development South Africa with a study of the social, environmental and economic impacts of our business in South Africa. Set in the context of the national development framework, we published our second Factor Report in 2016.

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What we did in 2015

Message from Leadership

We are ready and willing to play our part in creating a value-creating new economy. In so doing, we commit to invest in people, in our customers and in our national capacity to create value, as enunciated by the National Development Plan.

Dear stakeholders

On these pages I reflect on a year of momentous challenge, change and achievement for our company, a year in which we drew ArcelorMittal South Africa back from the edge of a precipice – to the benefit of our employees, our suppliers, our investors, our customers and society.

On Our creation of social value of this report we set out just how critically important a thriving primary steel industry is to the achievement of the more competitive, more inclusive, more equal South Africa that the National Development Plan has mapped out for us.

A national engine for growth

We also attempt, on those pages (and in our expanded online report), to provide some insight into the enormous value that ArcelorMittal South Africa creates for a multitude of stakeholders. Without wanting to duplicate information elsewhere in this report, it bears repeating that steel is a key enabler of virtually every single part of our economy and the bedrock of our nation’s industrialisation with the five leading steel-consuming sectors alone contributing R600 billion in GDP and sustaining eight million jobs. By annually beneficiating 6.5 million tonnes of our nation’s iron ore and producing a staggering variety of quality steel products, every year our company adds many billions to the economy.

South Africa needs a strong primary steel sector more than is generally realised. In developing countries such as ours there is a positive correlation between GDP and steel intensity and, as we grow our economy, we will need more steel – 5.8mtpa by 2020 and more than 7mpta by 2030.

Unlocking the value of our mineral wealth

Few, if any, countries are as richly endowed with mineral resources to the extent that our country is. Iron ore is chief among the mineral endowments we have inherited. Yet, every year, we fail to unlock the potential that lies underground to create a vibrant economy that creates value-adding jobs.

We at ArcelorMittal South Africa stand ready and willing to play our part in creating that value-creating new economy. In so doing we commit to invest in people, in our customers and in our national capacity to create value, as enunciated by the National Development Plan.

Replacing what we already have in the Vaal Triangle, Newcastle and Saldanha would take more than a decade to accomplish and cost tens of billions of rand that would be much better spent elsewhere while exposing South Africa to very considerable security-of-supply risks.

But, reading this report, it will become abundantly clear just how close we came this year to losing what we have – a proud, almost 90-year-old national asset that employs over 9 300 people directly while supporting tens of thousands more at suppliers big and small, numbers that multiply into the millions through the flat, long and tubular steel products our mills produce every day of the year.

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