2013

Introduction
With 119 million tonnes of annual production
capacity and 245,000 employees across 60
countries, ArcelorMittal is the world’s leading steel
and mining company.
Chairman and CEO: Lakshmi Mittal
CFO: Aditya Mittal
Headquarters: Luxembourg City
Revenue: US$ 84.213 billion (2012)
Operating income: US$ -3.226 billion(2012)
Profit: US$ -3.726 billion (2012)
Ranked: 70th on the Fortune Global 500
 Vision and Mission
Vision
To be leaders in providing recreation and learning
facilities and opportunities which promote stakeholder
wellness.
Mission
 Producing safe, sustainable steel.
 Pursuing operational excellence in all business processes.
 Producing innovative steel solutions for our customers.
 Caring for our environment and the communities in which
we operate.
 Living the brand values of Sustainability, Quality and
Leadership.
Trends in global steel industry
o Consumption of steel increased after 1950 and trend was
continued till 1970
o Consumption of steel started decline from 70s to 80s
o After 80s, demand for steel increased continually
o International Iron and Steel Institute (IISI) forecasted
increment in demand for steel from 1.32 billion tones (in
2010)to 1.62 billion tones(in 2015)
o This demand was increased from countries like India and china
o To capture this demand, biggest steel producer of India (TATA
Steel ltd.) has been increased its production base by acquiring
4th largest steel producer of world(Corus steel)
 What ArcelorMittal Produces
 Finished, semi-finished, long and flat products, such as:
-Slabs, Hot and cold rolled coil
-Coated steel products
-Tinplate and heavy plate, Rails
-Wire rod, sections, sheet piles etc
 Business Strategies
ArcelorMittal’s success has been built on:
Three-dimensional strategy for sustainability
and growth.
Geographical diversification
Product diversification
Value Chain: Plans to continue upstream and
downstream integration

Mergers & Acquisitions have historically been

a key pillar of ArcelorMittal’s strategy
Be a responsible corporate citizen
Mission & Objectives of
ArcelorMittal University
Transforming tomorrow through
the development of all our employees.
Bring support to
local training “Grow” our
centres own
future leaders

Increase Attract, retain

networking and develop
talent

Target the excellence Build the ArcelorMittal culture

in functional expertise and share best practices
 The Deal

 January 2006 : Mittal Steel offers the shareholders of

Arcelor to create the world's first 100 million tonnes
plus steel producer.
 The deal valued at $22.7 billion offer to Arcelor’s
shareholders
 But soon the deal landed into controversy.
 Deal finally clinched when the shareholders of Arcelor
agreed to Mittal Steel’s offer – In June 2006
 Mittal raised its valuation of Arcelor to $32.9 billion.
 ArcelorMittal
The result of numerous mergers…
Consolidation Europe
Downstream Integration

Regional leadership South Am. CST

Leadership in value added

Capture growth
and increase presence in growing market

Continued consolidation:

Leadership in value added

Regional leadership Eastern Europe

Increase presence in Asia and Africa

Global acquisition
Upstream integration
 Analysis

• Segmentation: Steel markets

• Target Group: Industries including

Construction, automotive, house hold
appliance and packaging

• Positioning: World’s safest steel and mining

company.
 SWOT
• Strength
– Expertise in acquisition & mergers
– Security of supply of raw material
– Strong Research & Development team
– Worldwide reach to optimize service across the
company
– High quality operations with economies of scale
– World's largest steel manufacturer with over
245,000 employees
• Weakness
– Cost of environmental hazard
– Issues of debt to equity ratio
• Opportunities
– Continue investment in mining operations
– Acquisitions and joint ventures in developing
countries like India and China
– Creating flexibility in operations

• Threats
– Government and environment regulations
– Rising labor cost
– High competition
 PESTEL Analysis
 Political
ArcelorMittal operates, or proposes to operate, in a
large number of developing countries.
Political systems in developing countries are vulnerable
to their populations’ dissatisfaction, social and ethnic
unrest and changes in governmental policies
 Economic
 ArcelorMittal operates and sells products globally
 As a result, its business, financial condition affected by
fluctuations in exchange rates.
 Social
 ArcelorMittal is already concentrating in the areas of safety,
health, social dialogue, and environment.
 Technological
 Employs 1,200 researchers in 13 research centres around the world,
Develop a revolutionary steelmaking process
 Car manufacturers want to reduce the weight of their vehicles by
using thinner, but stronger steel ensuring good deformability.
 Legal
 ArcelorMittal is subject to stringent health and safety laws and
regulations that give rise to significant costs and liabilities
 Environmental
ArcelorMittal supports the European Regulation of 18
December 2006 concerning the Registration, Evaluation,
Authorization and Restriction of Chemicals (REACH)
ArcelorMittal is set to become the largest beneficiary of
the EU Emissions Trading Scheme
 Major Marked Situation
Rising demand from china and India
2012 London Olympic ,huge demand of steel
Increasing demand from America
Expected growth rate 6.5%
China $585bn stimulus package for
infrastructure.
 Competitors
TATA STEEL, India
UNITED STATES STEEL CORPORATIONS, USA
BAOSTEEL GROUP CORPORATION, China
NIPPON STEEL & SUMITOMO METAL, Japan
JFE HOLDING, Japan
POSCO, South Korea
 ArcelorMittal selected by Technip to supply highly-resistant steel wires for
the development of oil

 Arcelor Mittal 2Q results show fall in earnings

 ArcelorMittal SA and Kumba in talks on new iron ore supply deal

 ArcelorMittal sells majority of Algerian unit to state

• http://townhall.com/news/business/2013/08/01/arcelor-mittal-2q-
results-show-fall-in-earnings-n1653837
• http://www.reuters.com/article/2013/09/29/us-arcelor-algeria-
idUSBRE98S06U20130929
• http://www.platts.com/latest-news/metals/london/arcelormittal-sa-and-
kumba-in-talks-on-new-iron-26316571
• It is the World’s leading, World’s safest steel and
mining company.
• ArcelorMittal’s Business Strategy of Mergers &
Acquisitions is the main reasons for growth of the
company.
• Arcelor Merger happened at the valuation of US$
32.9 billion.
• Three-dimensional strategy for sustainability
leads the company ahead of others.
• It has a revolutionary steelmaking process