ArcelorMittal / Enterprise Africa

ARCELORMITTAL SOUTH AFRICA

ARCELORMITTAL SOUTH AFRICA Repositioning, Restructuring and Revitalising Amid Steel Resurgence PRODUCTION: William Denstone

After one of its most challenging periods ever, a faster-than-expected resurgence in demand from the mining, automotive, manufacturing, construction and energy sectors is behind a major steel industry recovery halting the decline. ArcelorMittal South Africa is enjoying its own resurgence and results to go with it, as it continues to reposition as the champion of South Africa’s manufacturing backbone.

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INDUSTRY FOCUS: MANUFACTURING

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Approaching its century at the helm of the South African steel trade, founded in 1928 ArcelorMittal South Africa is today the largest steel producer on the continent, with a typical production capacity of seven million tonnes of liquid steel each year and supplying over 60% of the steel used in South Africa. The rest it exports to sub-Saharan Africa and anywhere else that its flat, long, tubular and foundry products are required.

“ArcelorMittal South Africa is well known for its reputation for reliability and a sharply defined business focus,” the organisation says, which has helped to forge it into a modern, highly competitive supplier of steel products to both domestic and global markets. “This has been achieved through on-going alignment with international best practices and a comprehensive understanding of the steel business environment, ensuring the company’s continued global competitiveness and participation in international markets.”

A powerful association with the global leader in all major markets, ArcelorMittal, further underpins its own standing and opens up

Saldanha Works

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access to world-class research and development, best practice processes, aggressive procurement contracts and international market leverage. “This ensures the company remains at the cutting edge of the international steel industry,” it enthuses.

STEEL BOUNCE BACK South Africa is one of the largest steel producers on the African continent, with steel-consuming industries contributing R600 billion to the country’s GDP, and steelmaking remains a key strategic industry for the country. As imported steel products continue to impact the viability of the South African steel industry, each tonne of steel produced domestically adds to the national economy, creates jobs and provides value through beneficiation, explained ArcelorMittal South Africa stakeholder management and communications group manager Tami Didiza in January.

“There must be adequate protection for the manufacturing industry against the unfair import of finished steel products which erodes the competitiveness of the manufacturing and fabrication capacity base of our country. We must avoid the country

// ARCELORMITTAL SOUTH AFRICA IS WELL KNOWN FOR ITS REPUTATION FOR RELIABILITY AND A SHARPLY DEFINED BUSINESS FOCUS // becoming a steel importer, leaving the upstream and downstream industries at the mercy of the global steel market.”

South Africa’s Master Plan for the steel and metal fabrication sector, signed last year, marked a huge step in the concerted bid to revive the local industry and boost output, implemented by the Department of Trade, Industry and Competition. A combined initiative by regulators, industry and labour, it sets out to re-energise the sector and expand production and negate the impacts of mounting pressure with fewer local infrastructure projects, high input costs and global price competition.

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D edication E nergetic L oyalty Trust Attention

Quality Service 24 hours, 365 days a year Our comprehensive, modern and reliable crane fleet ranges from 8 tons to 250 tons and is supported by our own Rigging Crews and Transport facility.

All our cranes have approved AV’s and Road Permits and is available to travel countrywide.

Safety First Always…

Delta are audited yearly

by Certified ESSH who is Expert Risk Services. We have received a 5 Star Grading. This star rating reflects the status of the OHS and Quality Management System measured against the requirements of ISO 45001:2018 & ISO 9001:2015.

Registered number: 2001|025865|07

“It is not the size of a corporation that determines its greatness it is the sheer dedication, heart, sweat and loyalty of each one of its employees” Delta Crane and Plant Hire (PTY) LTD based in Sasolburg Borne from Jenny Van Dam and her late Father Jan Olivier in July 2004. Jenny who is the Director and Shareholder of the Company has over 30 years of experience in the Construction and Mobile Crane Hire industry.

Our staff is highly skilled with years of experience in the industry. We are working in the mining, petrochemical, engineering, building and construction sector. Our operators are diverse and have extensive lift experience, and undergo regular training and inductions both in-house and at crane OEM’s.

Service delivery is key. Our main focus on proper crane maintenance is supported by our workshop in Sasolburg where we have comprehensive workshop facilities as well as a qualified maintenance team with a 40 years combined working experience.

+27 16 9711 101 | deltap@lantic.net

INDUSTRY FOCUS: MANUFACTURING

Continued from page 4 “The signing of the Master Plan sets the foundation and commitment for the development and growth of this important sector,” the ministry said of the scheme, whose priorities include addressing demand and supply, the African Continental Free Trade Area Agreement and a steel fund to support industry projects. South Africa is not an outlier in terms of these protection measures, Didiza clarified.

“Steel production is a crucial strategic competency, and most steel-producing countries have taken significant steps to protect their steel sectors against imports as per internationally agreed World Trade Organisation rules.

“It is estimated that it would take more than a decade to re-establish an integrated steel industry in South Africa were it to disappear,” he finished, in cautionary fashion. “This would be detrimental to the South African

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economy in every sense.” Hopefully a prospect which will never be more than a hypothetical, as from a desperate state only a matter of months ago the sector stands in its strongest position from a decade from a supply and potential demand perspective.

RESULTS REFLECT RESURGENCE A confluence of global and local factors are seeing demand for steel around the world steadily improving as markets recover from lockdown restrictions.

As its leading player, ArcelorMittal South Africa has perfectly embodied the ongoing resurgence, and drivers of demand spanned multitude markets including mining, automotive, construction and infrastructure and energy projects.

In July last year it reported its strongest half yearly EBITDA in a decade and a headline profit of R2,482 million, compared to a H1 2020 loss of R2,613 million. Sales volumes increased by 10%

to 1.3 million tonnes and liquid steel production increased by 36%, in the context of global crude steel production which increased by 14% against H1 2020 to 1,001 million tonnes.

ArcelorMittal South Africa observed the acceleration of the recovery in the global steel environment, in bloom since the second half of 2020.

Activity in key markets has been boosted by strong demand and low supply chain inventories following significant destocking in prior periods, combining to support a strong recovery in steel spreads.

“As anticipated in February 2021, both stronger sales volumes and the benefit of robust price-cost effects enabled ArcelorMittal South Africa to enjoy a strong start to 2021, recording a half yearly EBITDA of R3 218 million, its strongest in a decade,” the company summated. “This performance was remarkably achieved against the backdrop of one of the most

ARCELORMITTAL SOUTH AFRICA

// COMMITMENT TO SUSTAINABLE BUSINESS PRACTICES WILL TRANSFORM THE STEEL INDUSTRY ON THE CONTINENT //

challenging operating environments in the company’s long history, characterised by two Covid-19 waves and inclement weather events at the beginning of the year.”

CIRCULAR CARBON CHAMPION As a group, ArcelorMittal’s focus on transformation is informing its every move. “In order to live up to our brand promise of Transforming Tomorrow, we are committed to the highest standards of corporate responsibility,” it states. “We realise that an ongoing commitment to sustainable business practices will prove critical to achieving these goals and providing the kind of

// ARCELORMITTAL HAS LONG BEEN A CHAMPION OF THE CIRCULAR ECONOMY //

leadership that will transform the steel industry on the continent.”

Most recently, ArcelorMittal unrelieved an expansion of its partnership with carbon capture and re-use specialist LanzaTech with a US$30 million investment, the fourth via its XCarb™ innovation fund since its launch in March 2021.

Using LanzaTech’s gas fermentation technology, which captures carbonrich waste gases from the steelmaking process and converts them into sustainable fuels and chemicals, the plant will reduce ArcelorMittal Ghent’s CO2e emissions by 125,000 tonnes a year. It will also produce 80 million litres of bio-ethanol annually, which can be blended with traditional gasoline and used as a low-carbon alternative fuel for the transport sector.

“We have worked with LanzaTech for several years, know their leadership team well and understand the potential of their technology and the role it

can play in not only helping us to decarbonise, but also in producing valuable products from our carbon bearing gases which can help the decarbonisation of other sectors,” commented chief technology officer of ArcelorMittal, Pinakin Chaubal, a sentiment echoed by LanzaTech CEO Jennifer Holmgren.

“No longer can we simply extract more resources to make the things we need. ArcelorMittal has long been a champion of the circular economy and through their XCarb™ innovation fund they are helping create a new circular carbon economy. We are delighted to deepen our relationship with ArcelorMittal and look forward to this next chapter as we create a future where everything can be made from recycled carbon.”

WWW.ARCELORMITTALSA.COM

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