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During 2007.7 million tonnes of steel and 2005 revenues of €32. Turkey. Balkan Steel (Macedonia). France. Arcelor was the second largest steel producer in the world in terms of production. Uruguay. household appliances. Sidex (Romania) and Annaba (Algeria) in 2001. Arcelor was created in February 2002 by the combination of three steel-making companies: Aceralia Corporación Siderúrgica ("Aceralia"). Russia. with a total of 35 transactions announced in Argentina. China. Hunan Valin (China) and Kryvorizhstal (Ukraine) in 2005. Italy. Mittal Steel made its first acquisition in 1989. construction. South Africa. ArcelorMittal also announced or completed buy-out offers for minority interests in certain of its subsidiaries in Argentina. three Stelco Inc. in particular due to its Brazilian operations. a business founded in 1989 by Mr. ISG (USA). the United Kingdom. Mittal.6 billion. In 2007. It operated in all key end markets: the automotive industry. Slovakia. a number of which were completed in 2007. Germany. Canada. ArcelorMittal also initiated development plans for its greenfield projects in India. ArcelorMittal continued to pursue a disciplined growth strategy. packaging and general industry. with 2005 production of 46. to create a global presence in the steel industry. PHS (Poland) and Iscor (South Africa) in 2004.History ArcelorMittal is a successor to Mittal Steel. At the time of its acquisition by Mittal Steel in 2006. the United States and Venezuela. Arcelor enjoyed leading positions in Western Europe and South America. It has experienced rapid and steady growth since then largely through the consistent and disciplined execution of a successful consolidation-based strategy. Austria. the Chairman of the Board of Directors and Chief Executive Officer of ArcelorMittal. Lakshmi N. leasing the Iron & Steel Company of Trinidad and Tobago. subsidiaries (Canada) and Arcelor in 2006. BH Steel (Bosnia). Arbed and Usinor. Mexico. Nova Hut (Czech Republic) in 2003. Liberia and Senegal and announced new . Unimetal (France) in 1999. Some of its principal acquisitions since then include Thyssen Duisburg (Germany) in 1997. Inland Steel (USA) in 1998. Brazil and Poland. Estonia. Poland.
Since then the Company has sharply curtailed its M&A and investment activities and placed under review as a general matter its investment projects involving significant capital . ArcelorMittal has proven expertise in acquiring companies and turning around under-performing assets and believes that it has successfully integrated its previous key acquisitions by implementing a "best practices" approach in operations and management to enhance profitability. a company of approximately equivalent size. Russia. which currently constitute its major operating subsidiaries.6 billion in synergies from the merger. thereby achieving cost savings and revenue synergies. ArcelorMittal largely suspended mergers and acquisitions and other investment activities in light of the deteriorating economic and market environment. More recently. South Africa. the combined company has reached significant milestones in its operational integration process ahead of schedule.e. ArcelorMittal had fully realised its targeted $1. Canada. The bulk of these acquisitions and investments were made prior to the sharp downturn in the steel market starting in September 2008. Russia. As of 31 December 2008. Costa Rica. during the year ended 31 December 2008. During the first eight months of 2008. ArcelorMittal continued making investments. ArcelorMittal's acquisitions have been concentrated on vertical integration (i. Brazil. ArcelorMittal's principal investments and acquisitions (including Greenfield projects). with significant transactions announced in Australia. and Venezuela. as well as other synergistic benefits. Turkey.. France. acquisitions of raw material producers or production sites). optimised its supply chain and procurement structure and leveraged research and development services across a larger base. United Arab Emirates. the United States. During the last four months of 2008. Saudi Arabia and Turkey. Mozambique. Sweden. ArcelorMittal has grown through the acquisition of numerous steel-making and other assets.prospective development projects in Mauritania. the majority of which have been completed. Since the acquisition by Mittal Steel of Arcelor. Nigeria. having consolidated support functions. are summarised below.
.5 billion is for maintenance. new-build construction projects) and large "Brownfield" projects (i. The group was formed when two sister companies in the Mittal family. expansion or improvement of existing sites) are in any case subject to the receipt of various regulatory approvals without which implementation cannot begin. including those summarised below and those announced in prior years. Many of these projects. India > Acquisition of Stelco subsidiaries > Stake lifted in Mittal Steel Zenica 2004: Acquisition of Polski Huty Stali > Acquisition of BH Steel > Acquisition of Macedonian facilities from Balkan Steel > Creation of Mittal Steel and proposed acquisition of International Steel > 2003: Acquisition of Nova Hut 2002: Business assistance agreement signed with Iscor . History of Mittal Steel Mittal Steel's growth was founded on a consistent philosophy: that to be able to deliver the range and quality of products customers demand the modern steel maker must have the scale and worldwide presence to do so competitively.e. particularly "Greenfield" projects. Mittal Steel Growth Timeline 2005: Acquisition of a stake in Hunan Valin > ISG Acquisition completed > Mittal Steel Europe created > Mittal Steel makes Fortune 500 list of top companies> MDA with Liberian government > Acquisition of Kryvorizhstal > MoU with State of Jharkhand. the Company has sharply reduced its anticipated capital expenditures for 2009 to $3 billion. of which $2. As discussed more fully in "Item 5-Operating and Financial Review and Prospects-OverviewInitiatives in Response to Changing Market Conditions".e..expenditure. (i. were merged to form Mittal Steel in 2004. LNM Holdings and ISPAT International.
and commercial resources in order to create a global leader in the steel industry. The merger was officially launched on 19 February 2001 and the choice of the Arcelor name was announced on 12 December 2001. Aceralia (Spain) and Usinor (France). The merger became effective on 18 February 2002 when Arcelor shares were listed on several stock exchanges.2006 2006 2005 2004 2003 2002 . The three European groups were determined to mobilise their technical. Arcelor Highlights 2002. industrial. and Ispat Shipping formed > Acquisition of Karmet 1994: Acquisition of Sidbec-Dosco 1992: Acquisition of Sibalsa 1989: Acquisition of Iron & Steel Company of Trinidad & Tobago History of Arcelor Arcelor was created through the merger of Arbed (Luxembourg).2001: Acquisition of ALFASID > Acquisition of Sidex 1999: Acquisition of Unimétal 1998: Acquisition of Inland Steel Company 1997: Ispat International NV goes public 1995: Acquisition of Hamburger Stahlwerke > Ispat International Ltd.
Rocha accompanied colleagues to investigate a sound on the No. Gipson said. Rocha is expected to survive. sending Rocha 200 feet backward. 2 vessel ruptured. five people were seriously burned in an incident at a basic oxygen furnace at the Burns Harbor facility. A spokesman for the hospital said Rocha was in critical condition Tuesday. "Our thoughts are with the employee and his family. 1 vessel.m." the statement said." Gipson said." "We do not anticipate this incident to impact our ability to continue to serve our customers. Portage resident Gabe Rocha was airlifted to Loyola University Medical Center. . "He was very familiar with a basic furnace. Gipson said. According to Gipson. a steam line on the No. In 2007. As of Tuesday. there were no detailed findings available from the probe. Rocha spent years working in management at Inland Steel and recently moved to ArcelorMittal's Burns Harbor plant. Saturday. 1 basic oxygen furnace vessel around 9:30 p. "They thought it was an air leak. Gipson said Rocha is in his mid-50s with a wife and children. where he remains in the burn unit in a medically induced coma. As the group approached the No." Gipson said.Founding companies of Arcelor Chronology Arbed Chronology Aceralia Chronology Usinor ARTICLES BURNS HARBOR | A manager suffered third-degree burns on more than 55 percent of his body Saturday in a blast at ArcelorMittal Burns Harbor. The incident sparked a joint investigation by the union and management. A statement issued by ArcelorMittal on Tuesday said. a union official said. Rocha was burned from the back of his head to his lower calves in the incident. United Steelworkers Local 6787 President Paul Gipson said. Gipson said.
Robrecht Himpe. some onlookers believe that the company may be forced to consider removing more capacity from its European steel operations if demand for the metal fails to pick up in the next few months. chief executive of Voestalpine. according to the head of the company’s main steel operations across the continent. according to Mr Eder. said he was “convinced that we will see more [plant] shutdowns in the next years”. its chairman and main owner – has shied away since then from cutting back significantly on plant output on a permanent basis. The issue of how to react to poor demand in Europe – linked to the fragile state of many of ArcelorMittal’s European customers in sectors such as construction – is likely to overshadow Mr Mittal’s efforts to put a positive gloss on the outlook when he presents the company’s third-quarter results on Thursday. preferring instead temporary shutdowns by putting some employees on short-time working at times of poor demand.html#ixzz1cW6BiOAu ArcelorMittal is attempting to ride out the weak economic conditions in Europe without the need for further plant closures. following its decision this month to close a large part of a steel works in Belgium with the loss of 600 jobs. the main European trade association for the steel industry. Whether the closures should be made by ArcelorMittal or other companies was hard to say. an analyst at Commerzbank. who is also chairman of Eurofer.Read more: http://www.com/news/local/porter/duneland/burnsharbor/article_3b7deafc-1c1f-5501-8f54-ca14e97d9003.nwitimes.Wolfgang Eder. said that even with the Liège partial closure the European steel industry still suffered from “structural overcapacity” and that ArcelorMittal is “among the companies that should consider further permanent closures”. The decision to shut two blast furnaces at the company’s Liège site was ArcelorMittal’s first significant closure since it was formed in 2006 as a result of the merger between Mittal Steel and Arcelor to create the world’s largest steel business. told the Financial Times the company had “no plans” for permanent plant shutdowns. vice-president for European flat steel at ArcelorMittal. .However.The company – headed by Lakshmi Mittal. Austria’s biggest steelmaker.Ingo Schachel.
tax.. "ArcelorMittal has grown through acquisitions and will likely continue to do so. However. compared with the 36m tonnes operating level in 2007 when demand for steel was soaring. Germany. onlookers believe the earnings figure will pick up only marginally. Company observers inferred then that Aditya might be more willing to countenance permanent closures in Europe as a way to boost the company’s overall competitiveness. Failure to manage external growth and difficulties in integrating acquired companies could harm ArcelorMittal's future results of operations. 2010 | PTI NEW DELHI: Global steel giant ArcelorMittal has said that it is likely to continue to expand its base by acquiring companies worldwide even though it maintains that inorganic growth route could harm its financials. According to Mr Himpe.4bn. The current cuts in output in Europe are coming through temporarily shutting some of the company’s mills across France. financial conditions and prospects." the NRI. expectations for the whole of 2011 put ebitda at about $10. rising to about $10. he moved his son Aditya Mittal – ArcelorMittal’s chief financial officer – to take overall control of Europe. Next year. Mr Mittal has fought the idea of permanently shutting any significant part of plant operations. production from ArcelorMittal’s plants in Europe are currently operating at the level of making 28m tonnes of steel a year.600 of ArcelorMittal’s 60. ArcelorMittal bets on acquisitions February 15. About 3. due to generally weak demand and higher costs compared with some of its other steel plants such as in Brazil.5bn recorded in 2010. Spain. depreciation and amortisation for the third quarter will come in at $2. ArcelorMittal’s European operations add up to the biggest part of the company..000-strong European workforce are working part-time on lower pay.5bn. Since the Arcelor merger. 22 per cent above the $8. In the past two years. .While analysts believe that earnings before interest. they have acted as a drag on the company’s overall profits. in May this year. Belgium and Luxembourg.8bn.
The Mittals appear to have been betting that their tender offer with Peabody would. look nervy.1 bn Australia venture to hoard its cash October 26. Yet ArcelorMittal has chickened out of a junior role in Peabody Energy's $5. But it makes the world's largest steelmaker. controlled by the über-rich Mittal family. There may be some financial logic to the U-turn.ArcelorMittal chickens out of Peabody Energy's $5... 2011 | Reuters LONDON: Buyers don't usually turn sellers halfway through an M&A deal.1 billion takeover of Australia's Macarthur Coal . .
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