Despite the volatility from the ongoing repercussions of Covid-19 and its variants, ArcelorMittal South Africa recorded its highest annual EBITDA of ZAR 8,569 million and headline earnings of ZAR 6,860 million since 2008. Operating profit increased substantially from a loss of ZAR 963 million in 2020 to a profit of ZAR 7,976 million. The headline earnings of ZAR 6,860 million recovered strongly from a loss of ZAR 2,033 million. ArcelorMittal South Africa CEO Mr Kobus Verster said “These results were far from effortless and were achieved through the significant efforts of employees and service providers to overcome several obstacles throughout the year, which included1. Ramping-up production and restoring stability after the restart of operations in late 2020 and early 2021 and after interruptions due to disappointing and unacceptable safety incidents2. Adverse impact of the civil unrest and the spill-over effects of the paralyzing labor strike in the downstream industry, necessitating rapid rebalancing of dispatches to export markets3. Unreliable electricity supply at both generator and local municipal distribution levels, and worsening rail logistics services aggravated by significant fire damage at Transnet's Richards Bay facility4. Extreme volatility in international coking coal prices in the second half of 2021.ArcelorMittal South Africa's average capacity utilization increased from 42% in 2020 to 60% in 2021 and is currently at 79%. The company's crude steel production increased by 34%, or 769,000 tonnes, from 2,2 million tonnes to 3.0 million tonnes in 2021.ArcelorMittal South Africa's total sales volumes increased by 13%, or 284,000 tonnes, to 2.5 million tonnes compared to 2020, due to a 16% rise in domestic sales to 2.2 million while exports decreased by 5% to 302,000 tonnes. The regional mix of exports improved significantly with Africa Overland customers at 218,000 tonnes, representing a 47% increase.The company's overall realised steel price in dollars increased by 62%. In rand terms, these realised steel prices increased by 47% as the average dollar/rand exchange rates strengthened by 10%.Headquartered in Vanderbijlpark in Gauteng, ArcelorMittal South Africa is the largest steel producer on the African continent, with a production capacity, in a normal year, of 7 million tonnes of liquid steel per annum, after taking into account various yield factors, amounts to approximately 4.8 million tonnes of saleable steel products. The company supplies over 61% of the steel used in South Africa and exports the rest to sub-Saharan Africa and elsewhere. Its operations are 1. Vanderbijlpark Works2. Long Steel Products3. Tubular Works4. Coke & Chemicals5. Production Processes
Despite the volatility from the ongoing repercussions of Covid-19 and its variants, ArcelorMittal South Africa recorded its highest annual EBITDA of ZAR 8,569 million and headline earnings of ZAR 6,860 million since 2008. Operating profit increased substantially from a loss of ZAR 963 million in 2020 to a profit of ZAR 7,976 million. The headline earnings of ZAR 6,860 million recovered strongly from a loss of ZAR 2,033 million. ArcelorMittal South Africa CEO Mr Kobus Verster said “These results were far from effortless and were achieved through the significant efforts of employees and service providers to overcome several obstacles throughout the year, which included1. Ramping-up production and restoring stability after the restart of operations in late 2020 and early 2021 and after interruptions due to disappointing and unacceptable safety incidents2. Adverse impact of the civil unrest and the spill-over effects of the paralyzing labor strike in the downstream industry, necessitating rapid rebalancing of dispatches to export markets3. Unreliable electricity supply at both generator and local municipal distribution levels, and worsening rail logistics services aggravated by significant fire damage at Transnet's Richards Bay facility4. Extreme volatility in international coking coal prices in the second half of 2021.ArcelorMittal South Africa's average capacity utilization increased from 42% in 2020 to 60% in 2021 and is currently at 79%. The company's crude steel production increased by 34%, or 769,000 tonnes, from 2,2 million tonnes to 3.0 million tonnes in 2021.ArcelorMittal South Africa's total sales volumes increased by 13%, or 284,000 tonnes, to 2.5 million tonnes compared to 2020, due to a 16% rise in domestic sales to 2.2 million while exports decreased by 5% to 302,000 tonnes. The regional mix of exports improved significantly with Africa Overland customers at 218,000 tonnes, representing a 47% increase.The company's overall realised steel price in dollars increased by 62%. In rand terms, these realised steel prices increased by 47% as the average dollar/rand exchange rates strengthened by 10%.Headquartered in Vanderbijlpark in Gauteng, ArcelorMittal South Africa is the largest steel producer on the African continent, with a production capacity, in a normal year, of 7 million tonnes of liquid steel per annum, after taking into account various yield factors, amounts to approximately 4.8 million tonnes of saleable steel products. The company supplies over 61% of the steel used in South Africa and exports the rest to sub-Saharan Africa and elsewhere. Its operations are 1. Vanderbijlpark Works2. Long Steel Products3. Tubular Works4. Coke & Chemicals5. Production Processes