Arcelor mittal


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Arcelor mittal

  1. 1. 2013
  2. 2. 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
  3. 3. 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.
  4. 4. 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)
  5. 5. 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
  6. 6. 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
  7. 7. Mission & Objectives of ArcelorMittal University Transforming tomorrow through the development of all our employees. Build the ArcelorMittal culture and share best practices “Grow” our own future leaders Attract, retain and develop talent Target the excellence in functional expertise Increase networking Bring support to local training centres
  8. 8. 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.
  9. 9. CST ArcelorMittal The result of numerous mergers… Global acquisition Upstream integration Consolidation Europe Downstream Integration Regional leadership Eastern Europe Increase presence in Asia and Africa Regional leadership South Am. Leadership in value added Leadership in value added Capture growth and increase presence in growing market Continued consolidation:
  10. 10. Analysis • Segmentation: Steel markets • Target Group: Industries including Construction, automotive, house hold appliance and packaging • Positioning: World’s safest steel and mining company.
  11. 11. 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
  12. 12. • 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
  13. 13. 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.
  14. 14. 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
  15. 15. 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 $585bn stimulus package for infrastructure.
  17. 17.  ArcelorMittal selected by Technip to supply highly-resistant steel wires for the development of oil  Arcelor Mittal 2Q results show fall in earnings  ArcelorMittal SA and Kumba in talks on new iron ore supply deal  ArcelorMittal sells majority of Algerian unit to state • results-show-fall-in-earnings-n1653837 • idUSBRE98S06U20130929 • kumba-in-talks-on-new-iron-26316571
  18. 18. • It is the World’s leading, World’s safest steel and mining company. • ArcelorMittal’s Business Strategy of Mergers & Acquisitions is the main reasons for growth of the company. • Arcelor Merger happened at the valuation of US$ 32.9 billion. • Three-dimensional strategy for sustainability leads the company ahead of others. • It has a revolutionary steelmaking process