How we create social and human value
As Africa’s largest primary steel producer, ArcelorMittal South Africa creates vast social and human capital. Our products – produced in South Africa by South Africans using mostly South African raw materials and skills – are at the heart of the manufacturing, construction, mining and energy sectors – sectors that employ millions and which create the infrastructural backbone underpinning our economy and the livelihoods of present and future generations.
We are committed to working with the private sector, government and labour to unlock economic growth, industrial development and job creation.
Here we present some of the many ways in which we as a company, as an employer, customer and steel producer create significant value for South Africa and its people.
Employer, job creator and
Our plants are at the very heart of at least three regions which rely on them for employment and economic activity and to which we contribute through community investment and training
In 2016 we spent R2 018 million on maintaining and enhancing our plants, in the process ensuring our ability to sustain employment in, especially, the Vaal region, northern KwaZulu-Natal and the West Coast. Much of this maintenance work was carried out by local contractors and suppliers.
Key capital expenditure investments were:
In 2016 ArcelorMittal South Africa:
For detail on our environmental impact click here.
- 17% – percentage of our shares held by Likamva Resources, a 100% black-owned company following our 2016 B-BBEE transaction
- 5.1% – percentage of company shares given to a new employee trust, bringing to 6.6% employee and manager ownership
- R20 million – 2016 spend on enterprise and supplier development
- 95% – percentage of 2016’s 546 apprentices and 117 candidate artisans who were black; 93% of candidate technicians were black as were 61% of candidate engineers
- R2 750 million – 2016 procurement spend with exempt micro-enterprises and qualifying small enterprises
+ Externally assured.
|43 new products/new specifications being actively developed by long steel products to meet customer needs, to help them find new markets and create additional jobs|
|R479 million – value of strategic and value-added export rebates given to SA customers in 2016
(2015: R158 million)
|R23 billion value added by creating products which otherwise would be imported – 0.9% of direct GDP|
spent on 3 268 suppliers
The National Development Plan (NDP) contains key targets that are supported by ArcelorMittal South Africa’s activities, the key being the secure domestic supply of steel required to execute the NDP’s ambitious infrastructure plans. ArcelorMittal South Africa directly and indirectly contributes to the attainment of many of the plan’s social, economic and environmental targets.
More than 70% of our South African sales go to four key industrial sectors which, between them, account for some 20% of South Africa’s GDP and almost two million jobs.
|Construction||3.6||1 673||1 300|
|Utilities (water and energy)||2.5||168||100|
In 2016 ArcelorMittal South Africa and its first order suppliers contributed an estimated R41 billion to the national economy.
|ArcelorMittal South Africa will enable the NDP by creating value through converting raw material to steel||Touching every part of the South African economy, steel is central to the achievement of the 2030 goals of the NDP|