Preserving the SA steel industry is pivotal for growth
ArcelorMittal South Africa is ready to face the changing economy
Emerging from a disparate past ten years into a consolidated future, ArcelorMittal South Africa outlined its results and objectives at an event in Sandton, Johannesburg on September 6 2016.
Addressing the conference, ArcelorMittal South Africa chairman Mpho Makwana described the legacy and history behind the company, saying that very few can attest to belonging to an organisation that has been around for 103 years.
“For many years, having a steel mill was deemed to be a good economic asset, with a sound foundation for industrialisation,” said Makwana.
In present times, one has to step back and say: is there something we can learn and something we can achieve to surpass those before?”
Makwana said that part of this involves applying a common language to engage everyone involved and be able to communicate what needs to be communicated transparently.
“We play a clear role in South African manufacturing and in the economy of South Africa, as well as the whole infrastructure of South Africa’s NDP to 2030,” he continued. “We provide a big chunk of the goods. Water, roads, bridges and more are all linked to steel. Our current contribution remains 1.5% of the GDP and this is sizeable, especially factoring in some 190 000 jobs.”
According to Makwana, steel plays a crucial beneficiation role for the country’s iron ore, adding R24.3-billion in value to its raw materials base. It also underpins several other key industries such as agriculture, construction, automotive and mining, with these top five industries contributing 15% of South Africa’s GDP and employing some eight million people.
“These have far-reaching tentacles and if government does not look after them, this can have a serious impact on the economy.
“We have the added challenges of Chinese imports, but we move forward having concluded an agreement with the Competition Commission in terms of the R1.5billion fine.
“While this settlement has been published as a new thing, it is a matter of the past — as much as 10 to 13 years ago. In 2013, there were matters that needed to be bedded down and we needed to end an old legacy and practices that have now been curbed. It is now about how we move forward as a responsible citizen.
“If we look at the overall industry from a global perspective, it is cyclical and is now in downturn. That said, we have R29-billion worth of opportunities in our supply chain as we embark on our journey, not in tenderpreneurship, but in the spirit of entrepreneurship.