ArcelorMittal South Africa announces the resignation of the CEO and his appointment as Non-Executive Director

The Board Members of ArcelorMittal South Africa today announced that Paul O’Flaherty has resigned as Chief Executive Officer and Executive Director of the company. Mr O’Flaherty will step down after the announcement of the 2015 year-end results on 12 February 2016. To ensure continuity, Mr O’Flaherty will be appointed as a Non-Executive Director to the ArcelorMittal South Africa Board with effect from 01 March 2016.

Mr O’Flaherty commented: “The time has come for me to step down as the CEO as I wish to pursue other interests. I will, however, remain on as a Non-Executive Director to contribute to the roll-out of the strategy and maintain the relationships established with key stakeholders.”

Working with all key stakeholders, ArcelorMittal South Africa has made significant strides in settling the company’s legacy issues as well as installing the trade barriers desperately needed to ensure fair competition and the sustainability of the local steel industry. Significant progress has also been made in agreeing on a pricing policy for steel to ensure the competitiveness of domestic steel producers as well as promotion of downstream beneficiation. The process for the designation of primary steel for localisation purposes in Government infrastructure projects is also well underway.

With significant shareholder support, the company will recapitalise through the recently approved rights offer and, early in 2016, will choose a BEE consortium partner that will ensure that 25% of its shares are in the hands of black industrialists who can help grow the company locally and strengthen its presence in other countries on the continent.

Mr O’Flaherty said: “I would like to thank Government, shareholders, the Board, the Unions and the employees of the company for this great opportunity and for the significant support I have received. I believe we have proved that all these diverse and sometimes complex parties can work together for a common cause. I am confident that the steel industry in South Africa has a future.”

Mpho Makwana, Chairman of ArcelorMittal South Africa Board said: “We would like to express our gratitude to Mr O’Flaherty for his valuable contribution to ArcelorMittal South Africa and we look forward to his participation in implementing the well thought-out strategy he has put in place which will enable the management team and the new CEO (when appointed) to restore the sustainability of the company and continue building the South African steel industry.  We wish him all the best in his future endeavours.”