ArcelorMittal South Africa Ltd. appointed Paul O’Flaherty, a former financial director at the nation’s power utility, as chief executive officer of the continent’s biggest steelmaker.
He will start on July 1, taking over from Hans Rosenstock, who has been acting CEO since Feb. 18, when Nonkululeko Nyembezi-Heita resigned, the Vanderbijlpark-based company said today in statement. Rosenstock will revert to his role as chief operations officer.
O’Flaherty “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,” Chairman Mpho Makwana said in the statement. Makwana was chairman of Eskom Holdings SOC Ltd., the country’s state-owned electricity producer, during O’Flaherty’s tenure as financial director.
O’Flaherty helped oversee Eskom’s expansion program, set to cost about 500 billion rand ($48 billion) through 2017. The investments are aimed at replacing aging equipment and adding plants to avoid a repeat of 2008 blackouts that halted mines, including those owned by companies such as Anglo American Plc and BHP Billiton Ltd., for five days and paralyzed factories.
ArcelorMittal South Africa on May 9 said an increase in export sales helped counter a decline in local shipments, returning the company to profit in the first quarter.