bold spirit - ArcelorMittal South Africa

More documents

Recommendations

Info

46 ArcelorMittal South Africa Annual Report 2010 Operational review continued Long steel products are produced at our Newcastle and Vereeniging operations and are used extensively in the infrastructure industry, comprising products such as rebar, rod and wire rod. The net operating income increased from R315 million to R826 due to higher sales volumes and prices. Costs were negatively affected by higher iron ore and local coal prices, which were also partially offset by lower import coking coal prices as also applicable in the flat steel business. Production declined by 1% against 2009, of which the cold conditions experienced on Blast Furnace N5 during December was the main contributor. Capital expenditure Newcastle Works Newcastle Works operated at 82% of capacity in 2010 compared with 87% in 2009. Cold blast furnace conditions affected output in December after very stable operating conditions during the year. Coal and iron ore supply from Transnet Freight Rail was once again erratic due to industrial action and performance issues. Supply had to be supplemented with more expensive road freight deliveries .The downstream units continued their good performance from the previous year and improved production levels. Year ended 31 December 2010 Rm 2009 Rm Value-adding 67 18 Replacements 270 105 Environmental 120 148 Total 457 271 Vereeniging Works Vereeniging Works operated at 73% of capacity compared with 55% in 2009. With Newcastle Works being the lower-cost producer, output at Vereeniging Works was cut back as far as possible to maximise low-cost production. Newcastle Works also supplied Vereeniging Works with some of the requirements for its rolling mills. Capital expenditure Total capital expenditure increased from R271 to R457 million during 2010. The bulk of the funds spent on capital projects went towards replacement projects (R270 million) and environmental capital (R120 million), while new valueadding capital investments were R67 million.
47 ArcelorMittal South Africa Annual Report 2010 At Newcastle Works the majority of expenditure was spent on maintenance and environmental projects, whereas at Vereeniging Works the majority of expenditure was against safety, environmental and maintenance projects. Expenditure in 2011 will be focused on environmental, safety and maintenance projects. Operational results Year ended 31 December 2010 Rm 2009 Rm Revenue (Rm) 9 769 8 531 EBITDA (Rm) 1 090 591 Net operating income (Rm) 826 315 Liquid steel production (’000 t) 1 860 1 879 Sales volumes (’000 t) 1 693 1 078 – Domestic 615 1 615 – Export 993 622 Domestic sales (%) 64 61 Capital expenditure (Rm) 457 271 Average low-carbon wire-rod export price 698 510 (USD/t C&F) Number of employees 2 517 2 708 Total billet production cash cost (Rand per tonne) 3 466 3 293 Total billet production cash cost (USD per tonne) 472 390
Page 1 and 2:
Annual Report 2010 bold spirit
Page 3 and 4:
I in brief
Page 5 and 6:
Brand values Our goal is to provide
Page 7: Financial features Headline earning
Page 10 and 11: 2 ArcelorMittal South Africa Annual
Page 21 and 22: 11 ArcelorMittal South Africa Annua
Page 45: Commercial matters entrepreneurial
Page 109 and 110:
95 ArcelorMittal South Africa Annua
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
101 ArcelorMittal South Africa Annu
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Financial statements optimistic spi
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186:
Page 187 and 188:
Page 189 and 190:
Page 191 and 192:
Page 193 and 194:
Page 195 and 196:
Page 197 and 198:
Page 199 and 200:
Page 201 and 202:
Page 203 and 204:
Page 205 and 206:
Page 207 and 208:
Page 209 and 210:
Page 211 and 212:
Page 213 and 214:
Page 215 and 216:
Page 217 and 218:
Page 219 and 220:
show all

bold spirit - ArcelorMittal South Africa

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?