ArcelorMittal South Africa 2007 Sustainability Report Page 6
The business of ArcelorMittal South Africa
ArcelorMittal South Africa is the largest steel producer on the
African continent, supplying global and local markets with
6,4 million tonnes of steel products per annum. The
industries we serve include local construction, heavy
engineering, automotive, mining, packaging, pipe and tube
manufacturing and furniture and appliance manufacturing.
Since 1928 the company has grown to become a modern,
highly competitive organisation, now forming part of
ArcelorMittal, the world’s leading steel producer. As the
leader in all major global markets, we draw on global
expertise, best practices, leading edge technology and
outstanding distribution networks.
The company’s sustainability has been proven over many
years of generating profit and delivering to the highest
international steel standards, in spite of fluctuations in the
steel cycle. This success is due to a process of intensive
business re-engineering and the cultivation of a culture of
continuous improvement that drives all our operations.
Foreign investment with local empowerment
66% of ArcelorMittal South Africa’s stock is held by foreign
investors, including a 52% interest held by the global
ArcelorMittal Group.
ArcelorMittal South Africa subscribes fully to the principles
of broad-based black economic empowerment (B-BBEE).
Since the release of the revised DTI Codes of Good Practice
in February 2007, the company has instituted a B-BBEE
Steering Committee that is tasked with implementing the
company’s B-BBEE Policy and driving the achievement of
goals relating to all seven of the Codes. For the period under
review black representation on the board is made up as
follows; 26,6% non-executive, 16,7% executive directors
and 57,1% independent representation. (Calculated in terms
of the DTI’s Broad-based black economic empowerment Act
(Interpretive Guide June 2007 – Code 200)).
Corporate Governance
As recommended in King II, ArcelorMittal South Africa
has a unitary board structure, retaining full control over
the affairs of the company, and ensuring that decisions
on all material matters are handled by the board. Various
board committees are in place to assist the board to
discharge its responsibilities. In line with good corporate
governance practices, ArcelorMittal South Africa’s
board has a greater number of non-executive directors
than executive directors, with a strong contingent of
independent directors within the non-executive group.
For further details, see our full Corporate Governance
Report in the annual report
Export
Foreign sales and distribution are done through
Macsteel International, a joint venture in which
ArcelorMittal South Africa holds a 50% interest.
We stand strong and sure
