ArcelorMittal CEO Paul O'Flaherty resigns
Paul O’Flaherty (pictured), CEO of ArcelorMittal, South Africa's largest steel maker, has resigned with effect from 12 February 2016. O'Flaherty cited personal reasons for the decision.
The announcement sent the company's stock into a downward spiral. In the year to mid-December, ArcelorMittal has seen its market capitalisation lose 83%. According to reports, its share price has dropped from about R28 in January, to around R4,60, with a total value of some R2 billion.
Currently, South Africa's steel makers are struggling in the face of a flood of cheap imports, mostly from China. Although government previously approved a 10% tariff on certain imported steel products previously duty-free, this may not be enough to save SA's steel industry.
O'Flaherty, who has been at the company's helm for the past 18 months, will remain a member of ArcelorMittal's board. From March, he will become a non-executive director. The company is currently looking for his replacement, establishing a search committee to do so.