Paul O’Flaherty
Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – ArcelorMittal South Africa (AMSA) CEO and executive director Paul O’Flaherty has resigned, citing a wish to “pursue other interests”.
He would step down after the announcement of the 2015 year-end results on February 12, 2016, after which he would be appointed as a nonexecutive director, with effect from March 1, 2016, to ensure continuity.
“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 nonexecutive director to contribute to the roll-out of the strategy and maintain the relationships established with key stakeholders,” he commented.
O’Flaherty’s resignation came almost a month after AMSA warned of an earnings “bloodbath” for 2015, revealing that the results would be negatively affected by weak trading conditions and a R1.53-billion write-down.
The company, meanwhile assured shareholders that it had made “significant” strides in settling the company’s legacy issues as well as installing the trade barriers 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,” the statement read.
AMSA planned to recapitalise through a recently approved R4.5-billion rights offer and in, early in 2016, would choose a black economic-empowerment consortium partner that would ensure that 25% of its shares were in the hands of black industrialists.
“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,” O’Flaherty held.
AMSA chairperson Mpho Makwana thanked the outgoing CEO for his valuable contribution, adding that the company looked forward to his participation in implementing the well strategy he had put in place to restore the sustainability of the company and continue building the South African steel industry.