ArcelorMittal is a successor to Mittal Steel, a business founded in 1989 by Mr. Lakshmi N. Mittal, the Chairman of the Board of Directors and Chief Executive Officer of ArcelorMittal. It has experienced rapid and steady growth sinc e then largely through theconsis tent and disciplined execution of a successful consolidation-based strategy. Mittal Steel made its first acquisition in 1989,leas ing the Iron & Steel Company of Trinidad and Tobago. Some of its principal acquisitions since then include Thyssen Duisburg(Germany) in 1997, Inland Steel (USA) in 1998, Unimetal (France) in 1999, Sidex (Romania) and Annaba (Algeria) in 2001, NovaHut (Czec h Republic) in 2003, BH Steel (Bosnia), Balkan Steel (Macedonia), PHS (Poland) and Iscor (South Africa) in 2004, ISG(USA), Hunan Valin (China) and Kryvorizhstal (Ukraine) in 2005, three Stelco Inc. subsidiaries (Canada) and Arcelor in 2006.Arcelor was created in February 2002 by the c ombination of three steel-making companies: Ac eralia Corporación Siderúrgica("Aceralia"), Arbed and Usinor, to create a global presence in the steel indus try. At the time of its acquis ition by Mittal Steel in 2006,Arcelor was the second largest steel producer in the world in terms of production, with 2005 production of 46.7 million tonnes of steel and 2005 revenues of ¼32.6 billion. It operated in all key end markets : the automotive industry, construction, householdapplianc es, pack aging and general industry. Arcelor enjoyed leading positions in Western Europe and South America, in particular due to its Brazilian operations.In 2007, ArcelorMittal continued to pursue a disciplined growth s trategy, with a total of 35 transactions announced in Argentina,Austria, Canada, China, Estonia, Franc e, Germany, Italy, Mexico, Poland, Russ ia, Slovakia, South Africa, Turkey, the UnitedKingdom, Uruguay, the United States and Venezuela, a number of which were completed in 2007. During 2007, ArcelorMittal alsoannounc ed or completed buy-out offers for minority interests in certain of its subsidiaries in Argentina, Brazil and Poland.ArcelorMittal also initiated development plans for its greenfield projec ts in India, Liberia and Senegal and announced new prospective development projects in Mauritania, Mozambique, Nigeria, Russia, Saudi Arabia and Turkey.During the first eight months of 2008, ArcelorMittal continued making inves tments , with significant transactions announced inAustralia, Brazil, Canada, Cos ta Rica, France, Rus sia, South Afric a, Sweden, Turkey, United Arab Emirates, the United States, andVenez uela, the majority of which have been completed. During the last four months of 2008, Arc elorMittal largely suspendedmergers and acquisitions and other investment activities in light of the deteriorating economic and market environment.ArcelorMittal has proven expertis e in acquiring companies and turning around under-performing ass ets and believes that it hassucc essfully integrated its previous key acquisitions by implementing a "best practices" approach in operations and management toenhance profitability.Sinc e the acquis ition by Mittal Steel of Arcelor, a company of approximately equivalent s ize, the c ombined c ompany has reachedsignificant milestones in its operational integration process ahead of schedule, having consolidated support functions, optimised itssupply chain and proc urement structure and leveraged res earch and development s ervices across a larger base, thereby achievingcost savings and revenue synergies, as well as other synergistic benefits. As of 31 December 2008, Arc elorMittal had fully realis edits targeted $1.6 billion in s ynergies from the merger.ArcelorMittal has grown through the acquisition of numerous steel-making and other assets, which currently constitute its major operating subsidiaries . More rec ently, ArcelorMittal's acquisitions have been concentrated on v ertic al integration (i.e., acquisitions of raw material producers or production sites). ArcelorMittal's principal inves tments and acquis itions (including Greenfield projects),during the year ended 31 December 2008, are summarised below.The bulk of these acquisitions and investments were made prior to the sharp downturn in the steel market starting in September 2008. Since then the Company has sharply curtailed its M&A and investment activities and placed under review as a general matter its inves tment projects involving s ignificant capital expenditure, including those summarised below and those announc ed in prior years. Many of these projects, particularly "Greenfield" projects, (i.e., new-build construction projects) and large "Brownfield" projects (i.e., expansion or improvement of exis ting sites) are in any c ase subjec t to the rec eipt of various regulatory approvalswithout which implementation cannot begin. As dis cussed more fully in "Item 5-Operating and Financial Review and Prospects-Overview-Initiatives in Respons e to Changing Market Conditions", the Company has sharply reduced its anticipated capitalexpenditures for 2009 to $3 billion, of which $2.5 billion is for maintenanc e.
History of Mittal Steel
Mittal Steel's growth was founded on a consis tent philosophy: that to be able to deliver the range and quality of products customersdemand the modern steel maker must have the scale and worldwide pres enc e to do so competitively.The group was formed when two sister c ompanies in the Mittal family , LNM Holdings and ISPAT International, were merged to formMittal Steel in 2004.Mittal Steel Growth Timeline