Integrated Annual Report 2016
creating value for all
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Who we are

With headquarters in Vanderbijlpark, Gauteng, ArcelorMittal South Africa is Africa’s largest steel producer with a production capacity, in a normal year, of 6.1 million tonnes of liquid steel which, after taking into account various yield factors, amounts to approximately 5.2 million tonnes of saleable steel products. This year we produced some 4.8 million tonnes of saleable steel, a very similar amount to that of 2015.

A proudly South African company, we are part of the ArcelorMittal group, the world’s leading steel producer with industrial sites in over 20 countries and a presence in more than 60.

Our steel is produced in flat and long products that are further processed by downstream manufacturers. We also have a Coke and Chemicals operation which produces commercial grade coke for use by the ferro-alloy industry, and processes steelmaking by-products.

Our primary goal is to sell into the local and nearby markets. Currently we supply approximately 60% of the steel used in South Africa while exporting the balance to sub-Saharan Africa and elsewhere.

In 2016, we permanently employed 9 056 (2015: 9 315) people, with an estimated economy-wide employment-creating impact of over 100 000 jobs.

Ebitda contribution    
Flat steel   Long steel   Coke and chemicals   Corporate

Flat steel products

Produced at Vanderbijlpark and Saldanha Works. Products include slabs and heavy plate as well as hot rolled coil, cold rolled and coated products. Major consumers are the construction, piping, packaging and automotive industries.

Vanderbijlpark Works


Saldanha Works

Saldanha Works   Vanderbijlpark Works


2.9 million tonnes

of liquid steel per annum



1.3 million tonnes

of liquid steel per annum

One of the world’s largest inland steel mills and sub-Saharan Africa’s biggest supplier of flat steel products.
An integrated process produces liquid iron which is refined to produce, ultimately, heavy plate and coils.
Largely export focused, Saldanha produces high-quality ultra-thin hot rolled coil, using a world-first merger of the Corex and Midrex technologies to replace the need for blast furnaces and coke ovens.

Capacity utilisation


(2015: 75% – 2014: 83%)


Capacity utilisation


(2015: 74% – 2014: 87%)


Lost time injury frequency rate (LTIFR)


(2015: 0.51 – 2014: 0.54)




(2015: 0.0 – 2014: 0.59)



R18.3 billion

(2015: R15.9 billion)



R5.2 billion

(2015: R5.2 billion)


Liquid steel production

2.389 million tonnes+

(2015: 2.182 million tonnes)


Liquid steel production

832 000 tonnes+

(2015: 963 000 tonnes)

+ Externally assured.

For more information on Vanderbijlpark Works click here.   For more information on Saldanha Works click here.

Long steel products

Produced at Newcastle and Vereeniging Works. Products include bar, billets, blooms, hot-finished and cold-drawn seamless tubes, window and fencing profiles, light, medium and heavy sections, rod and forged products. Long steel products are used primarily in the construction industry.

Long Steel Products


1.9 million tonnes

of liquid steel per annum

The foremost South African producer of profile products including low and medium-carbon commercial grades, sulphur-containing free-cutting steels, micro-alloyed steels and high-carbon wire-rod steels as well as alloy steels, specialty steel, seamless tube and forge products. In 2015, a restructuring of our long steel division entailed billets produced at the Newcastle furnace (which was relined at a cost of R1.8 billion in 2014) being transported to Vereeniging for milling, unlocking synergies and boosting return on capital employed. Tubular Products Vereeniging is the sole producer of hot rolled and cold drawn seamless tube products in South Africa. The facility produces 100 000 tonnes of final product per annum, of which some 80% is exported.


Capacity utilisation (Newcastle)


(2015: 73% – 2014: 41%)




(Previously we reported separate LTIFR figures for Newcastle, Vereeniging and Tubular Products. In both 2014 and 2015 Newcastle’s LTIFR was 0.25.)



R10.6 billion

(2015: R10.9 billion – 2014: R9.1 billion


Liquid steel production

1.550 million

(2015: 1.694 million tonnes)

Coke and Chemicals

Coke and Chemicals’ core business is the production of commercial coke for the ferro-alloy industry from coke batteries located at Vanderbijlpark, Newcastle and Pretoria. The business also processes and beneficiates metallurgical and steel by-products, including coal tar. These are sold as raw materials for a wide variety of uses.

Coke and Chemicals


695 000 tonnes

of commercial coke per annum

Produces commercial coke for the ferro-alloy industry from coke batteries in Vanderbijlpark, Newcastle and Pretoria. Metallurgical and steel products are also beneficiated, among them coal tar.





(2015: 1.09 – 2014: 0.95)



R1.4 billion

(2015: R1.8 billion – 2014: R2.0 billion)


Commercial coke production

251 000 tonnes

(2015: 406 000 tonnes – 2014: 522 000 tonnes)



For more information on long steel click here.      For more information on Coke and Chemicals click here.


© ArcelorMittal 2017