ArcelorMittal appoints O’Flaherty as CEO - CNBC Africa

ArcelorMittal appoints O’Flaherty as CEO

Southern Africa

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ArcelorMittal is a South African steel producer. PHOTO: Getty Images

O’Flaherty will take over from acting CEO and executive director Hans Ludwig Rosenstock who took charge of the company on 19 February 2014.

“We are delighted that a talented executive of O’Flaherty’s calibre will join ArcelorMittal South Africa to inject new energy into our efforts as we embark on a strategic turnaround of the company to restore profitability, business performance, BBBEE and the strategic transformation of the company,” said chairman of the board, Mpho Makwana.

“On behalf of the board, I extend a warm welcome to O’Flaherty and wish to also thank Rosenstock for his contribution as acting CEO for the past three months,” Makwana added.

(READ MORE: ArcelorMittal appoints interim CEO)

Rosenstock will revert back to his role as chief operations officer of ArcelorMittal South Africa and remains an ex-officio member of the board.

The steel producer recently indicated that it expects continued growth and development in the sub-Saharan African region from a number of keys sectors.

“In sub-Saharan Africa steel demand continued to be positively impacted by significant infrastructure investment in roads, rail, housing development and energy projects, and various investment activities in the mining sector,” [DATA ACL:ArcelorMittal] had said.

“Recent investments in the oil and gas sectors are also stimulating steel demand and further growth prospects are expected to arise from this activity.”

(READ MORE: ArcelorMittal buoyed by Africa infrastructure investment)

However, progress in South Africa is expected to remain subdued due to the country’s sluggish economic growth.

“Slow economic growth and a weak GDP continued to dominate the domestic market during the fourth quarter of 2013,” it said.

“Recent data suggests a further contraction and weaker activity in manufacturing and mining production, which increases the risk that overall economic growth for the year ahead could be even lower.”

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