ArcelorMittal

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ArcelorMittal, S.A.
TypeSociété Anonyme
Traded asEuronextMT
NYSEMT
BMADMTS
LuxSEMT
IndustrySteel
Predecessor(s)Arcelor
Mittal Steel Company
Founded2006
Headquarters19, Avenue de la Liberté, 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$ 84.2130 billion (2012)[1]
Operating incomeDecrease US$ -3.226 billion (2012)[1]
ProfitDecrease US$ -3.726 billion (2012)[1]
Total assetsDecrease US$ 114.573 billion (2012)[1]
Total equityDecrease US$ 51.723 billion (2012)[1]
Employees245,000 (2012)[1]
Websitewww.arcelormittal.com
 
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ArcelorMittal, S.A.
TypeSociété Anonyme
Traded asEuronextMT
NYSEMT
BMADMTS
LuxSEMT
IndustrySteel
Predecessor(s)Arcelor
Mittal Steel Company
Founded2006
Headquarters19, Avenue de la Liberté, 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$ 84.2130 billion (2012)[1]
Operating incomeDecrease US$ -3.226 billion (2012)[1]
ProfitDecrease US$ -3.726 billion (2012)[1]
Total assetsDecrease US$ 114.573 billion (2012)[1]
Total equityDecrease US$ 51.723 billion (2012)[1]
Employees245,000 (2012)[1]
Websitewww.arcelormittal.com

ArcelorMittal S.A. (French pronunciation: ​[aʁsəlɔʁmiˈtal]) is a multinational steel manufacturing corporation headquartered in Avenue de la Liberté, 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 93.6 million tones as of 2012.[2] It is ranked 91st in the 2013 Fortune Global 500 ranking of the world's biggest corporations.[3]

History[edit]

ArcelorMittal was created by the takeover of Western European steel maker Arcelor (Spain, France, and Luxembourg) by Indian-based 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.[4][5]

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.[6][7] In October 2008, the market capitalisation of ArcelorMittal was over $30 billion.[8]

In December 2008, ArcelorMittal announced several plant closings, including the Bethlehem Steel plant in Lackawanna, New York, and LTV Steel in Hennepin, Illinois.[citation needed]

On 30 June 2010, the European Commission fined 17 steel producers a total of €518 million for running a price-fixing cartel, with ArcelorMittal being fined over €270 million.[9]

On 26 January 2011, the Stainless steel division split off as a new company, Aperam.[citation needed]

In 2012 the company had $22 billion of debt.[10] As of 2012, due to overcapacity and reduced demand in Europe it had idled 9 of 25 blast furnaces;[10] in October 2012 it permanently shut down two blast furnaces at Florange, France.[11]

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.[12]

In January 2013, ArcelorMittal bid $1.5 billion to acquire ThyssenKrupp AG’s steel operations in the United States.[13]

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.[14]

Company structure and subsidiaries[edit]

Lakshmi Mittal (owner of Mittal Steel) is the Chairman and CEO. His family owns 40% of the shares and voting shares in the company.[15]

Headquarters[edit]

The head office of ArcelorMittal is the ARBED building in Luxembourg City, where 600 of its employees work. The building was the head office of Arbed before that company merged with Aceralia and Usinor.[16]

Although official headquarters is Luxembourg; according to Aditya Mittal, the company's CFO, ArcelorMittal could more accurately be said to be run from the company's office in Berkeley Square in London.[17]

Employees[edit]

As of 2011 the company employed over 260,000 persons, of which 37% were in the EU, with a further 16% in non-EU European countries, 16% in Asia, 14% in North America, the remainder split between South America and the Middle East and Africa.[18] ArcelorMittal is also Luxembourg's largest employer. At the beginning of 2011, it employed 6,070 employees in the Grand Duchy.[19]

See also[edit]

References[edit]

  1. ^ a b c d e f http://corporate.arcelormittal.com/~/media/Files/A/ArcelorMittal/news-and-media/press-releases/2013/Q412-IR-results-CFO.pdf.  Missing or empty |title= (help)
  2. ^ "Top steel-producing companies 2012". World Steel Association. Retrieved 2013-11-10. 
  3. ^ "91. ArcelorMittal", GLOBAL 500 - Our annual ranking of the world's largest corporations (CNN) 
  4. ^ Kanter, James; Timmons, Heather; Giridharadas, Anand (25 June 2006), Arcelor agrees to Mittal takeover, New York Times 
  5. ^ Lenard, David M. (7 June 2006), "Arcelor Mittal: The dawn of a steel giant", wwww.atimes.com (Asia Times Online) 
  6. ^ Steel firm opts for Mittal offer, BBC News, 25 June 2006 
  7. ^ De Smedt, Seraf; Van Hoey, Michel (February 2008), "Integrating steel giants: An interview with the ArcelorMittal postmerger managers", www.mckinseyquarterly.com 
  8. ^ "Yahoo Finance: ArcelorMittal, (finance.yahoo.com)". Archived from the original on 27 October 2008. 
  9. ^ Thomet, Laurent (30 June 2010), EU fines steel makers 518 million euros for price-fixing, AFP 
  10. ^ a b A Global Steel Giant Scales Back, New York Times, 25 July 2012 
  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. 
  14. ^ Senegal wins court case against Arcelor Mittal -government, International: Reuters, 2013 
  15. ^ 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" 
  16. ^ Arcelor-Mittal : un siège au Luxembourg (in French), Le Journal du Net, retrieved 5 October 2012 
  17. ^ Reed, Stanley (15 April 2007), "Mittal & Son", wwww.businessweek.com (Bloomberg LP), "Arcelor Mittal's headquarters may be in Luxembourg, Aditya says, but the "power is in London."" 
  18. ^ ArcelorMittal fact book, ArcelorMittal, Number of employees, pp.50-1 , alt. link. pp.46-7 (pdf)
  19. ^ "ArcelorMittal, BGL et Cactus sont les premiers employeurs du Luxembourg", www.wort.lu (in French), 21 June 2011 

External links[edit]