ArcelorMittal assesses contribution to South Africa
ArcelorMittal continues to make significant contributions to South Africa’s development despite the tough economic environment. That’s according to a new social impact report from the company which reveals that ArcelorMittal South Africa contributes to more than 1% of South Africa’s GDP, supporting more than 16,000 jobs directly and indirectly.
The second edition of ArcelorMittal South Africa’s “Factor Report” was published in the midst of what is arguably one of the toughest periods in the steel industry’s history – both in South Africa and on a global scale.
Chairperson Mpho Makwana said: “Setting the company’s contributions to South Africa in the context of the country’s National Development Framework, the Factor Report sets the tone for some really constructive engagement with our stakeholders and helps them better understand ArcelorMittal South Africa and its contributions to the development of the country. At the same time, it gives us the chance to have a good look at ourselves and see how we can contribute more”.
This second edition of the report shows that ArcelorMittal South Africa continues to make significant contributions to the country’s economy and employment in local communities, despite the tough economic conditions. It also highlights areas for improvement to help the company strengthen its impact.
Key data on ArcelorMittal South Africa’s footprint reveals that every 1,000 tonnes of steel produced locally:
- contributes R9.2m to South Africa’s GDP and R0.13m in taxes
- provides three jobs directly and three jobs indirectly
- enables domestic procurement spend of R5.3m, of which SME spend is R0.5m
The report is also transparent about ArcelorMittal South Africa’s environmental footprint, stating that every 1,000 tonnes of domestic steel produced creates 2,900 tonnes of CO2, 0.5 tonnes of dust, 4.6 tonnes of SO2, and abstracts 4.0 million litres of water.
“There are areas where the company can still improve”, Mpho added. “We are ready and willing to play our part in building 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”.
Read the full report here.