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==History== ==History==
===2006-2008: Formation and scalebacks=== ===2006-2008: Formation and scalebacks===
ArcelorMittal was created by the takeover of Western European steel maker ] (Spain, France, and Luxembourg) by ]n-owned multinational steel maker ] in 2006, at a cost of €40.37 per share, approximately $33&nbsp;billion total. Mittal Steel launched a ] bid which replaced a previous planned merger between Arcelor and ], which had lacked sufficient shareholder approval. The resulting merged business was named ArcelorMittal and is headquartered in Luxembourg.<ref name=nyt-sgrees>{{citation| url = https://www.nytimes.com/2006/06/25/business/worldbusiness/25iht-steel.html| title = Arcelor agrees to Mittal takeover| first = James| last = Kanter|first2= Heather|last2= Timmons |first3= Anand|last3= Giridharadas| date = 25 June 2006|publisher = '']''}}</ref><ref name=atimes-giant>{{citation| url =http://www.atimes.com/atimes/Asian_Economy/HF27Dk01.html| title = Arcelor Mittal: The dawn of a steel giant| first = David M.| last = Lenard | date = 7 June 2006| work = wwww.atimes.com| publisher = '']''}}</ref> The resulting firm produced approximately 10% of the world's steel, and was by far the world's largest steel company. Total revenues in 2007 were $105 billion.<ref name=bbc-opt>{{citation| url = http://news.bbc.co.uk/1/hi/business/5114290.stm| title = Steel firm opts for Mittal offer| date = 25 June 2006| publisher = ]}}</ref><ref name=mk-quarterly>{{citation| url = http://www.mckinseyquarterly.com/Integrating_steel_giants_An_interview_with_the_ArcelorMittal_post-merger_managers_2107| title = Integrating steel giants: An interview with the ArcelorMittal postmerger managers| date = February 2008| first = Seraf| last = De Smedt| first2 = Michel| last2= Van Hoey| work = www.mckinseyquarterly.com}}{{dead|date=June 2017}}</ref> In October 2008, the market capitalisation of ArcelorMittal was over $30 billion.<ref name=ARCELORB>{{cite web|title=Yahoo Finance: ArcelorMittal, (finance.yahoo.com) |url=https://finance.yahoo.com/q?s=MT |archiveurl=https://web.archive.org/web/20081027074621/https://finance.yahoo.com/q?s=MT |archivedate=27 October 2008 |deadurl=no |df=dmy }}</ref> ArcelorMittal was created by the takeover of Western European steel maker ] (Spain, France, and Luxembourg) by ]n-owned multinational steel maker ] in 2006, at a cost of €40.37 per share, approximately $33&nbsp;billion total. Mittal Steel launched a ] bid which replaced a previous planned merger between Arcelor and ], which had lacked sufficient shareholder approval. The resulting merged business was named ArcelorMittal and is headquartered in Luxembourg.<ref name=nyt-sgrees>{{citation| url = https://www.nytimes.com/2006/06/25/business/worldbusiness/25iht-steel.html| title = Arcelor agrees to Mittal takeover| first = James| last = Kanter|first2= Heather|last2= Timmons |first3= Anand|last3= Giridharadas| date = 25 June 2006|publisher = '']''}}</ref><ref name=atimes-giant>{{citation| url =http://www.atimes.com/atimes/Asian_Economy/HF27Dk01.html| title = Arcelor Mittal: The dawn of a steel giant| first = David M.| last = Lenard | date = 7 June 2006| work = wwww.atimes.com| publisher = '']''}}</ref> The resulting firm produced approximately 10% of the world's steel, and was by far the world's largest steel company. Total revenues in 2007 were $105 billion.<ref name=bbc-opt>{{citation| url = http://news.bbc.co.uk/1/hi/business/5114290.stm| title = Steel firm opts for Mittal offer| date = 25 June 2006| publisher = ]}}</ref><ref name=mk-quarterly>{{citation|url=http://www.mckinseyquarterly.com/Integrating_steel_giants_An_interview_with_the_ArcelorMittal_post-merger_managers_2107 |title=Integrating steel giants: An interview with the ArcelorMittal postmerger managers |date=February 2008 |first=Seraf |last=De Smedt |first2=Michel |last2=Van Hoey |work=www.mckinseyquarterly.com |deadurl=yes |archiveurl=https://web.archive.org/web/20121125070604/http://www.mckinseyquarterly.com/Integrating_steel_giants_An_interview_with_the_ArcelorMittal_post-merger_managers_2107 |archivedate=25 November 2012 |df= }}</ref> In October 2008, the market capitalisation of ArcelorMittal was over $30 billion.<ref name=ARCELORB>{{cite web|title=Yahoo Finance: ArcelorMittal, (finance.yahoo.com) |url=https://finance.yahoo.com/q?s=MT |archiveurl=https://web.archive.org/web/20081027074621/https://finance.yahoo.com/q?s=MT |archivedate=27 October 2008 |deadurl=no |df=dmy }}</ref>


In December 2008, ArcelorMittal announced several plant closings, including the ] plant in ], and ] in ].{{citation needed|date=October 2012}} After purchase of ], Ukraine's largest steel producer, employment was scaled back from 57,000 employees to 30,000.{{cn|date=June 2017}} In December 2008, ArcelorMittal announced several plant closings, including the ] plant in ], and ] in ].{{citation needed|date=October 2012}} After purchase of ], Ukraine's largest steel producer, employment was scaled back from 57,000 employees to 30,000.{{cn|date=June 2017}}

Revision as of 16:51, 9 June 2017

ArcelorMittal, S.A.
Company typeSociété Anonyme
Traded asEuronext: MT
NYSE: MT
BMAD: MTS
LuxSE: MT
CAC 40 Component
IndustrySteel
PredecessorArcelor
Mittal Steel Company
Founded2006; 19 years ago (2006)
Headquarters24-26, Boulevard d’Avranches, Luxembourg, Luxembourg
Area servedWorldwide
Key peopleLakshmi Mittal
(Chairman and CEO)
Aditya Mittal
(CFO)
ProductsFinished, semi-finished, long and flat products, such as slabs, hot-rolled coil, cold-rolled coil, coated steel products, tinplate and heavy plate, as well as billets, blooms, rebars, wire rod, sections, rails, sheet piles and drawn wire
RevenueDecrease US$56.79 billion (2016)
Operating incomeIncrease US$4.16 billion (2016)
Net incomeIncrease US$1.77 billion (2016)
Total assetsDecrease US$75.14 billion (2016)
Total equityIncrease US$30.13 billion (2016)
OwnerLakshmi Mittal (37.4%)
Number of employees199,000 (2016)
Websitecorporate.arcelormittal.com

ArcelorMittal S.A. (Template:IPA-fr) is a Luxembourg-based multinational steel manufacturing corporation headquartered in Boulevard d’Avranches, Luxembourg. It was formed in 2006 from the takeover and merger of Arcelor by Mittal Steel. ArcelorMittal is the world's largest steel producer, with an annual crude steel production of 98.1 million tons as of 2014. It is ranked 108th in the 2016 Fortune Global 500 ranking of the world's biggest corporations.

History

2006-2008: Formation and scalebacks

ArcelorMittal was created by the takeover of Western European steel maker Arcelor (Spain, France, and Luxembourg) by Indian-owned multinational steel maker Mittal Steel in 2006, at a cost of €40.37 per share, approximately $33 billion total. Mittal Steel launched a hostile takeover bid which replaced a previous planned merger between Arcelor and Severstal, which had lacked sufficient shareholder approval. The resulting merged business was named ArcelorMittal and is headquartered in Luxembourg. The resulting firm produced approximately 10% of the world's steel, and was by far the world's largest steel company. Total revenues in 2007 were $105 billion. In October 2008, the market capitalisation of ArcelorMittal was over $30 billion.

In December 2008, ArcelorMittal announced several plant closings, including the Bethlehem Steel plant in Lackawanna, New York, and LTV Steel in Hennepin, Illinois. After purchase of Kryvorizhstal, Ukraine's largest steel producer, employment was scaled back from 57,000 employees to 30,000.

2011-2014: Losses and Senegal agreement

On 26 January 2011, the stainless steel division split off as a new company, Aperam. In 2012 ArcelorMittal had $22 billion of debt. As of 2012, due to overcapacity and reduced demand in Europe it had idled 9 of 25 blast furnaces; in October 2012 it permanently shut down two blast furnaces at Florange, France. On October 31, 2012, the company reported a third-quarter loss of $709 million as compared to a $659 million profit for the same period a year ago, citing the slow down in China's economy.

In January 2013, ArcelorMittal bid $1.5 billion to acquire ThyssenKrupp AG's rolling mill in Calvert, Alabama, United States. The joint venture with Nippon Steel & Sumitomo Metal Corporation was finalized in February 2014. The firm also entered into a $2.2 billion contract to develop an iron ore deposit in Senegal. This included construction of a 750 km (466 mi) railway line. After stalling on the contract and failing to build according to schedule the Government of Senegal sued. In September 2013, the government of Senegal won a court case before an international tribunal to rescind a $2.2 billion deal with ArcelorMittal after the company suspended work on an iron ore mine in the country. In June 2014, the International Chamber of Commerce's arbitration court in Paris awarded Senegal $150 million.

Dealing with price and demand fluctuations in the steel market, from 2012 to 2014 ArcelorMittal restructured its European division by reducing employee numbers and closing plants. In May, 2014, ArcelorMittal, citing economic self-interest, declared its opposition to sanctions on Russia. As of June 2014, ArcelorMittal accounted for for 7 per cent of world steel production. After being shut out of the Chinese steel industry in 2005 along with other foreign companies, in 2014 the company announced it was planning new plants in China.

2008-2016: Price fixing convictions

Following an investigation first launched in 2008, in August 2016 the South African Competition Commission found the company guilty of price fixing. ArcelorMittal was fined R1.5 billion (equivalent to US$110.9 million) to be paid over a 5-year period. As part of the settlement the firm also agreed to invest R4.64 billion in capital over five years. Fines were particularly high for the firm owing to two prior convictions. According to the findings, the firm had been part of a 17 steel member groups nicknamed "Club Zürich" that later became known as "Club Europe." For a period of 18 years, the companies fixed the market, prices, and exchanged confidential corporate information. According to Joaquín Almunia, a European Union Commission Vice-President, "it is amazing how such a significant number of companies abused nearly the entire European construction market for such a long time and for such a vital product. This was almost as if they were acting in a planned economy."

2015-2016: Recent acquisitions

In 2015, the company had a net loss of $7.9 billion. Early in 2016, the company announced it had raised $3 billion in new investment capital to help reduce debt to $11.7 billion of debt. In early 2016 the company also announced a program to boost core profit by $3 billion by 2020 "through a mixture of cost-cutting, increased production and a focus on higher-value forms of steel." Chairman Lakshmi Mittal announced doubled earnings the following year in May 2017. It ranked 108th in the 2016 Fortune Global 500 ranking of the world's biggest corporations.

In February 2017 ArcelorMittal announced its first annual profits in five years. In February 2017, ArcelorMittal and Votorantim announced plans to combine their long steel operations in Brazil. Under the deal, Votorantim Siderurgia became a subsidiary of ArcelorMittal Brasil. In late May 2017, ArcelorMittal and the Steel Authority of India Ltd (SAIL) agreed on preliminary terms to form a $913 million joint venture to export a fifth of the auto-grade steel made by the venture.

By March 2017, ArcelorMittal was leading a consortium bidding for Ilva. An Italian company, Ilva owns the Taranto steelworks in southern Italy, which has Europe's largest steel output. The steelworks had been accused of toxic emissions linked to local cancer rates, and had been nationalized by the government years prior. The buyers were the AM Investco consortium, which beyond ArcelorMittal included Marcegaglia and Banca Intesa Sanpaolo. In its bid, AM Investco also pledged to make investments into Ilva of €2.4bn until 2023. In May 2017, ArcelorMittal was announced as the preferred bidder over a different consortium led by JSW Steel, after it was able to pledge a production increase and guarantee employment levels. The final decision was waiting on Italy’s ministry of economic development. On June 5, 2017, ArcelorMittal won approval to purchase Ilva for €1.8 billion. In its bid, AM Investco had pledged to make investments into Ilva of €2.4bn until 2023.

Products and activities

Steel being rolled at an AcelorMittal facility in Brazil.

The company is involved in research and development, mining, and steel. ArcelorMittal in 2016 produced around 90 million tons of steel. As of May 2017, the company made 200 unique steel grades for automotive purposes, half of which were introduced since 2007. Among the steel varieties are Usibor 2000, which the company announced in June 2016 and released later that year. Upon release, the high-strength automotive steel was said to be about one-third stronger than other steels then available for carmaking.

Company structure and subsidiaries

Lakshmi Mittal (owner of Mittal Steel) is the chairman and CEO. His family owns 40% of the shares and voting shares in the company. After a $3 billion rights issue earlier in April 2016, the company by the 21 April 2016 had a share value of 16,616 million euros, distributed in 3,065,710,869 shares.

Board of directors

Comprised as follows by nine people as of June 2017:

Employees

As of 31 December 2013, the company employed over 232,000 people, of which 37% were in the EU, with a further 16% in non-EU European countries, 17% in Asia, 16% in North America, the remainder split between South America and the Middle East and Africa. ArcelorMittal is also Luxembourg's largest private employer. At the beginning of 2014, it employed 4,600 employees in the Grand Duchy.

Facilities

Headquarters

Headquarters of ArcelorMittal in Luxemburg city

The head office of ArcelorMittal is in Luxembourg City. The building was the head office of Arbed before that company merged with Aceralia and Usinor.

Major plant locations

ArcelorMittal Ostrava.

Joint ventures (with Nippon Steel)

  • New Carlisle, Indiana, USA (built 1991)
  • AM/NS Calvert. Formerly named ThyssenKrupp Steel USA and located in Calvert, Alabama, the facility was purchased from ThyssenKrupp through a 50/50 joint partnership with Nippon Steel & Sumitomo Metal Corp in February 2014 for $1.5 billion and renamed AM/NS Calvert. A greenfield construction project which began in 2007, the facility began operation in 2010 and has a production capacity of 5.3 million tons and includes a hot strip mill, cold roll mill and 4 coating lines. Products from the facility are marketed in the NAFTA region through managing partner ArcelorMittal.

See also

References

  1. ^ "4Q 2012 and FY 2012 Results". ArcelorMittal. 6 February 2016.
  2. "Steel baron Lakshmi Mittal stumps up close to £800m to help his embattled steel firm cope with tumbling prices". Retrieved 5 February 2016 – via www.bloomberg.com.
  3. "Top steel-producing companies 2012". World Steel Association. Retrieved 10 November 2013.
  4. ^ "91. ArcelorMittal", GLOBAL 500 - Our annual ranking of the world's largest corporations, CNN
  5. Kanter, James; Timmons, Heather; Giridharadas, Anand (25 June 2006), Arcelor agrees to Mittal takeover, New York Times {{citation}}: Italic or bold markup not allowed in: |publisher= (help)
  6. Lenard, David M. (7 June 2006), "Arcelor Mittal: The dawn of a steel giant", wwww.atimes.com, Asia Times Online {{citation}}: Italic or bold markup not allowed in: |publisher= (help)
  7. Steel firm opts for Mittal offer, BBC News, 25 June 2006
  8. De Smedt, Seraf; Van Hoey, Michel (February 2008), "Integrating steel giants: An interview with the ArcelorMittal postmerger managers", www.mckinseyquarterly.com, archived from the original on 25 November 2012 {{citation}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  9. "Yahoo Finance: ArcelorMittal, (finance.yahoo.com)". Archived from the original on 27 October 2008. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  10. ^ Reed, Stanley (25 July 2012), A Global Steel Giant Scales Back, New York Times
  11. Kessler, Vincent (1 October 2012), "ArcelorMittal confirms French furnace closures", uk.reuters.com
  12. "Steelmaker ArcelorMittal Posts $709M 3Q Loss". The New York Times.
  13. Reuters (17 January 2013). "ArcelorMittal bids $1.5 billion for ThyssenKrupp's Alabama plant". Reuters. {{cite news}}: |author= has generic name (help)
  14. Finch II, Michael (26 February 2014). "Sale of ThyssenKrupp Steel USA clears all regulatory approval". The Press-Register. Retrieved 26 February 2014.
  15. ^ Felix, Bate (6 June 2014). "UPDATE 1-Senegal to receive $150 mln in damages from ArcelorMittal". Reuters.
  16. Senegal wins court case against Arcelor Mittal -government, International: Reuters, 2013
  17. Powley, Tanya (6 November 2014). "ArcelorMittal boosted by pick-up in steel business". Financial Times. United Kingdom. Retrieved 8 June 2017.
  18. ArcelorMittal Opposes Western Sanctions Against Russia, Reuters, 2014
  19. Hornby, Lucy (15 June 2014). "ArcelorMittal's path to China not paved with steel". Financial Times. United Kingdom. Retrieved 8 June 2017.
  20. Smith, Carin (22 August 2016). "ArcelorMittal to pay R1.5bn price fix fine". Fin24. Retrieved 23 August 2016.
  21. "European Commission - Press release - Antitrust: Commission fines prestressing steel producers € 269 million for two-decades long price-fixing and market-sharing cartel". Europa.eu. 4 April 2011.
  22. ^ Pooler, Michael (11 March 2016). "ArcelorMittal outlines terms of $3bn rights issue". Financial Times. United Kingdom. Retrieved 8 June 2017.
  23. ^ Pooler, Michael (5 June 2016). "ArcelorMittal to launch new high strength steel". Financial Times. United Kingdom. Retrieved 8 June 2017.
  24. McClean, Paul (12 May 2017). "ArcelorMittal doubles earnings after cost-cutting drive". Financial Times. United Kingdom. Retrieved 8 June 2017.
  25. ^ Pooler, Michael (23 February 2017). "ArcelorMittal and Votorantim to combine Brazilian long steel operations". Financial Times. United Kingdom. Retrieved 8 June 2017.
  26. "ArcelorMittal, SAIL agree to mediator's proposal to advance Indian venture". The Economic Times. India. 31 May 2017. Retrieved 8 June 2017.
  27. Politi, James (5 March 2017). "Bidding race to win Europe's biggest steel plant heats up". Financial Times. United Kingdom. Retrieved 8 June 2017.
  28. ^ Pooler, Michael (6 June 2017). "ArcelorMittal wins race to buy Italian steel business Ilva". Financial Times. United Kingdom. Retrieved 8 June 2017.
  29. Pooler, Michael; May 26, 2017 Politi, James. "ArcelorMittal-led group leads race to buy Ilva steel plant". Financial Times. United Kingdom. Retrieved 8 June 2017.{{cite news}}: CS1 maint: numeric names: authors list (link)
  30. What We Do, ArcelorMittal, retrieved 8 June 2017
  31. "ArcelorMittal reports that automakers are using more steel as quality improves". Chesterton Tribune. 16 May 2017. Retrieved 8 June 2017.
  32. Shareholding structure, ArcelorMittal, retrieved 5 October 2012, The following table sets forth information on 30 September 2012 with respect to the beneficial ownership and voting rights of ArcelorMittal shares
  33. ArcelorMittal announces the successful completion of its c.US$3bn rights issue, ArcelorMittal, 4 April 2016, retrieved 8 June 2017{{citation}}: CS1 maint: year (link)
  34. ^ ArcelorMittal Board, ArcelorMittal, 2017, retrieved 8 June 2017
  35. ArcelorMittal annual review 2013, ArcelorMittal, Allocation of employees at December 31, 2013 according to geographical location
  36. "Les plus gros employeurs du Luxembourg sont...", www.lessentiel.lu (in French), 2 July 2014
  37. Arcelor-Mittal : un siège au Luxembourg (in French), Le Journal du Net, retrieved 5 October 2012
  38. "ArcelorMittal and Nippon Steel Corporation Announce $240 million Expansion at I/N Kote in New Carlisle, Indiana". Bloomberg L.P. 16 April 2008. Retrieved 26 February 2014.
  39. Finch II, Michael (26 February 2014). "Sale of ThyssenKrupp Steel USA clears all regulatory approval". Press-Register. Mobile, Alabama. Retrieved 26 February 2014.
  40. "ArcelorMittal AM/NS Calvert Webpage".

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