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Overview
Strategic goals
Industry leading value-creation for our shareholders
Value creating throughput increases Substantial reduction in hot rolled / coil real costs
Build on existing performance culture
Create an environment that generates true employee pride and attracts, develops and retains top-performing people
Be a responsible corporate citizen
Modern, highly competitive supplier of steel products with turnover of R40bn Global standing is underpinned by being part of the worlds largest steel producer, ArcelorMittal. This relationship facilitates: world-class R & D; best practice processes; aggressive procurement contracts, and international market leverage
ArcelorMittal South Africa is amongst the worlds lowest cash cost producers
South Africa
Cape Town
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Company Structure
ArcelorMittal International Minorities 52% 48%
Vanderbijlpark Works Hot rolled Heavy Plates Cold rolled Coated - Galvanised - Painted - Tinplated
Saldanha Steel (Pty) Ltd Hot rolled coil - thin and ultra thin
Vereeniging Works Rolled profiles (Vereeniging) Special profiles (Pretoria) Forged products (Pretoria & Vereeniging) Seamless tubes (Vereeniging) Directly reduced iron (Dunswart)
Coke & Chemicals Coke batteries - Pretoria - Vanderbijlpark - Newcastle - Vanderbijlpark Tar plant - Vanderbijlpark
Joint Ventures Mr Eric Samson 50% 50% Macsteel International Holdings BV Export marketing Shipping
Nampak Ltd 40% Collect a Can (Pty) Ltd Can Reclamation 60% 50%
Anglo American Ltd 50% Consolidated Wire Industries (Pty) Ltd Wire drawing
2008
10% 52%
Corporate
21%
16%
Products
Rolling
Plate Mill
Iron Ore
Annealing process
Cold Rolled Sheet Electrolytic Galvanising Line
Slabs
Sinter mix Sinter plant
EG Sheet
Annealing process
Vanderbijlpark Works
2008 Liquid steel production (000 tons) Sales tons Domestic percentage Manpower Area of site Perimeter Rail networks Electricity consumption Primary raw materials received Secondary raw materials received Water consumption
3 227 2 608 91% 4 582 2 300 Ha 20 km 256 km and 38 locomotives 6,28 GWh per day 23 300 tons per day 4 560 tons per day 65 000 kilo liters per day
Fluxes
Thin slab caster Roller Heath Furnace and Hot Strip Mill Corex
Coal
Iron Ore
Conarc Furnace
Temper Mill
Pellets
Saldanha Works
2008 Liquid steel production (000 tons) Sales tons Domestic percentage Manpower Area of site Perimeter Electricity consumption Primary raw materials received Water consumption
857 805 59% 556 432 Ha 5,1 km 3,8 GWh per day 9 800 tons per day 7 500 kilo liters per day
Induction Furnace 2x Basic Oxygen Furnace 2x Ladle Furnace Vacuum degasser unit 2x6 Strand continuous bloom casters
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Newcastle Works
2008 Liquid steel production (000 tons) Sales tons Domestic percentage Manpower Area of site Perimeter Rail networks Electricity consumption Primary raw materials received Water consumption
1 345 1 260 95% 1 921 1 697 ha 18.97 km 90 km 1 539 MWh per day 9 350t per day 17 000 kilo liters per day
End products
Hex Hollow Drill Steel Round & Flat Spring Steel Round & Square Profiles for the Reforging, Automotive & General Engineering industries Window Profiles Fencing Posts
+
Ferro Alloying Elements
Ladle Furnace
Degassing
FORGE BUSINESS
BILLET MILL Round & Square, Step and Hollow forgings such as barrels, shafts, rolls etc.
PRESSES
Ingot
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Vereeniging Works
2008 Liquid steel production (000 tons) Sales tons Domestic percentage Manpower Area of site Perimeter Rail networks Electricity consumption Primary raw materials received Water consumption
345 413 82% 948 100 Ha (5 sites) 15 km 16 km 1 100 MWh per day 1 200 ton per day 894 kilo liters per day
859 126 814 140 323 63 MWh per day 3 721 ton per day 1 395 kilo liters per day
Flat Carbon Steel Products Cold Rolled Colour Coated Electro Galvanised Hot Dipped Galvanised Hot Rolled Plate Slabs Tin Plate 10% 3% 2% 13% 56% 6% 1% 8%
Long Carbon Steel Products Bars Semis Seamless Tubes Sections Manufatured Long Products Rails Rebar Windows Wire Rod 17% 2% 6% 25% 7% 1% 12% 3% 28%
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10
1 8.5 31.5
15
20
25
30
35
40
45
50
M anufacturing
Construction
W holesale
6.1
Utilities/M ining
5.3
G overnm ent
0
0
3.4 12.9 11.3 2 1.2
4 8.2
Steel Sectors
A griculture
3 1.9 21.9
Fin Services
0
Africa 8%
Asia 5%
Long carbon steel products Transportation Pipe & Tube 1.2% 1.5% Automotive 7.4% Machinery & Equipment 20.2% Construction Energy/Mining/ 44.6% Chem & water 20.7%
Equipment 7.4% Furniture & Energy /Mining/ Appliances 1.3% Chem & Water 7.7%
Convertors/Rerollers 1.8%
ktonnes
7033
7261
1690
2004
2007 2008
Total
6000
1810
1397 714
ktonnes
2000 2728 1000 2402 2969 2887 2835 743 864 499
1151 0
1083
1431
1535
2004
2008 2004
2008 2004
2008
Domestic
Exports
Total
SHE/CSI
Human Resources
Environment
Environmental
Communities
Communities Commitments
Shareholders
Corporate Governance and sustainability reporting Board independence Equal rights among shareholders Best in class disclosure and shareholder dialogue
Social Commitments
Commitments
Health & Safety Equitable employment practices World class training and skills development
Waste disposal Ground water and air quality Environmental compliance and legacy issues ISO 180001
Community engagement
Top management priority Health and Safety policy launched in March 2007 per 1m man hours Injury tracking and reporting database to monitor injuries, lost days and significant events in place Fatality prevention and process standards, and golden rules introduced Shop Floor auditing procedure rolled-out Journey to Zero initiative launched (September 2008)
Environment
ArcelorMittal is committed to eliminate or minimize the main environmental impacts caused by its activities: Rational use of water, electricity and natural resources;
Monitoring of impacts (air, water, waste, noise etc) Promote the reduction, reuse and recycling of waste generated by its processes; Comply with environmental laws; Continuous improvement of processes; All South African plants are ISO 14001 certified with the exception of Dunswart facility and Small Section Mill in Pretoria
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Environmental Objectives
The following strategic objectives reflect the companys ambition to improve environmental performance
Reduce water abstraction per tonne of crude steel produced by 40% by 2010, with the year 2005 as the baseline. Achieve and maintain ambient PM 10 dust levels of 40 g/Nm3 (annual average), measured along the fence line, by 2012. Improve material efficiency rate* by 20% by 2011. Reduce CO2 emissions per tonne of crude steel by 7% by 2014, with the year 2005 being the baseline. To improve energy efficiency by 15% by 2014, with the year 2000 being the baseline.
* Material efficiency rate = (Crude steel production Waste)/Crude steel production *100%
Key CSI projects R250 million, multi-year programme to build 10 schools Science centres in Sebokeng and Saldanha ..% shareholder in Collect-a-Can recycling company R30 million preferential procurement initiative Noahs Ark Care for Aids orphans Small-scale community projects
Education with special emphasis on mathematics, science and technology Job creation and poverty alleviation Health & Safety BBBEE & SME development
Volunteer Day: mobilising our employees to do good Our presence plays an important role in all the communities where we operate
Disclaimer This document may contain forward-looking information and statements about ArcelorMittal South Africa and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements may be identified by the words believe, expect, anticipate, target or similar expressions. Although ArcelorMittal South Africas management believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of ArcelorMittal South Africas securities are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond the control of ArcelorMittal South Africa, that could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. ArcelorMittal South Africa undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise. 34