March/April 2018 Vol. 11, No. 2 No. 11, Vol. 2018 March/April ArcelorMittal USA 1 Company 1 Community1 Company 1 Magazine 03 Brett: Pursuing sustainability and profitability 04 06 07 08 Delivery matters Steel shines in Detroit This is us Extreme Shared Vigilance Burns Harbor implements Advanced steels were Our steel in the U.S. Navy’s Indiana Harbor employee new strategy once again in the spotlight newest submarine donates kidney to co-worker at the 2018 NAIAS Jolice Pojeta Mary Beth Holdford Jolice Pojeta Kelly Nissan 2 1 Company 1 Community 1 Magazine 1 | ArcelorMittal USA | March/April 2018 > Global News ArcelorMittal announces $1 billion investment program in Mexican operations ArcelorMittal is investing $1 announced today we need both would be optimized to approxi- finished steel for the domestic production would total approxi- million metrics tons with the billion in its Mexican operations, a favorable investment environ- mately 5.3 million metric tons Mexican market significantly mately 2.5 million metric tons, remaining one million metric tons focused on building ArcelorMittal ment and confidence in long-term per year, with the proportion of expanded. Flat rolled steel long steel approximately 1.8 made up of semi-finished slabs. Mexico’s downstream capabilities, domestic growth prospects. I sustaining the competitiveness therefore warmly welcome the of its mining operations and confirmation of the special modernizing its existing asset economic zones by the Mexican base. The program is designed to government, which establishes enable ArcelorMittal Mexico to a positive regulatory investment meet the anticipated increased framework aimed at facilitating demand requirements from economic and infrastructure domestic customers, realize in development in the south of the full ArcelorMittal Mexico’s country. Our investment program productive capacity of 5.3 million is aligned with the Mexican metric tons and significantly government’s objectives, and enhance the proportion of will enable us to benefit from the higher-value added products anticipated increased demand for in its product mix, in line with higher-added value steel products our Action 2020 strategic plan. from domestic Mexican custom- The main investment will ers. It reinforces our long-standing be construction of a new hot presence in Mexico, will support strip mill. Construction will take the creation of approximately approximately three years and, 800 new jobs and play an upon completion, will enable important role in bolstering ArcelorMittal Mexico to produce economic activity in the region.” c. 2.5 million metric tons of flat Victor Cairo, CEO, rolled steel. Coils from the new ArcelorMittal Mexico, added, hot strip mill will be supplied to “Construction of the new hot strip domestic, non-auto, general mill, alongside the other projects industry customers. Further in our investment program which investments will be made at are geared towards enhancing Lázaro Cárdenas to improve the the efficiency and quality of our quality and productivity of the operations, will enable us to asset base, with additional optimize our asset base and investment in the group’s increase the proportion of finished Mexican mining operations. steel products for our domestic The announcement follows customers. The investments confirmation that the Mexican will help us to meet the demand government has established five requirements for higher-added special economic zones (SEZ) value products we expect to see in southern Mexico to attract from domestic customers, which infrastructure investment in today are heavily dependent on areas of undeveloped economic imports, while continuing to potential. Lázaro Cárdenas, support ArcelorMittal’s NAFTA home to ArcelorMittal Mexico’s operations by providing high- primary steelmaking operations, quality semi-finished steel slabs.” was named a SEZ. ArcelorMittal Mexico Commenting, Lakshmi Mittal, currently produces approximately Chairman and CEO, ArcelorMittal, four million metric tons of steel a said: “To make investment year. Following completion of the decisions of the scale we have investment program, production Enrique Peña Nieto, President of Mexico, and Lakshmi Mittal, CEO and Chairman ArcelorMittal. Our 10 sustainable > Global News development outcomes New state-of-the-art research vessel Our 10 sustainable development outcomes are how we will built tough with ArcelorMittal steel contribute to making a more sustainable future, from the way we make steel and use resources, to how we develop new products, and support our people and our communities. 1 Safe, healthy, quality working lives for our people 2 Products that accelerate more sustainable lifestyles 3 Products that create sustainable infrastructure 4 Efficient use ofresources and high recycling rates 5 Trusted user of air, land and water 6 Responsible energy user that helps The vessel is currently being constructed at Damen Shipyards in Galati, Romania. create a lower carbon future ArcelorMittal Galati, Romania, of the polar waters. was to deliver the plates to Symbolic coin for the keel has supplied steel for an Antarctic The vessel is designed to Damen in the required dimensions laying ceremony 7 Supply chains that our customers trust supply research vessel (ASRV), carry out both research and – a third to be thin and wide. In August 2017, to recognize with impressive icebreaking supply functions in Antarctic The thinner plates are used for the start of the construction, the 8 Active and welcomed member capabilities. The Australian waters. It will be able to break the deck of the vessel, while the official keel laying ceremony took government commissioned the up nearly six-foot-thick ice at thicker ones are usually used to place at the shipyard in Galati. of the community ship to broaden the country’s speeds and will supply Australia’s form the hull. Additionally, the Several coins were placed under exploration of the Southern permanent research stations in extra wide plates significantly the keel in accordance with 9 Pipeline of talented scientists and engineers Ocean and Antarctica. the area with cargo, equipment reduce the number of welds tradition, including a Dutch silver for tomorrow The vessel is under construc- and personnel. She will also required. coin from 1642, the year that tion at Damen Shipyards in Galati, feature science laboratories ArcelorMittal Galati’s Dutch explorer Abel Tasman 10 measured, Romania. Damen is building the and offices. proximity to Damen’s shipyard became the first European to Our contribution to society ASRV for Serco Defence on behalf minimized the chance of transport reach Tasmania. Tasmania is shared and valued of the Australian Department Smooth sailing with Damen delays. It also allowed our experts not only where the offices of of the Environment and Energy. ArcelorMittal Europe – Flat to provide a swift answer to any the Australian Antarctic Division Our company supplied Products and Damen Shipyards technical questions the client are located, but the island’s All underpinned by transparent good governance. heavy plates in grades ranging Group have a longstanding might have. capital, Hobart, will be the from AH36 to EH36. The marine working relationship, reinforced by Previously, our company vessel’s home port. Look for “The 10” symbol in 1 Magazine to see how steels are built strong, with a yet another high-profile project. supplied steel and collaborated Delivery of the ASRV is our company works toward a more sustainable future. low carbon content, ideal for One of the main challenges with Damen on its new class of scheduled for April 2020. tackling the challenging conditions ArcelorMittal successfully met service operation vessels (SOVs). 3 1 Company 1 Community 1 Magazine 1 | ArcelorMittal USA | March/April 2018 Pursuing sustainability and profitability to change. We are facing greater He received the results of that John Brett challenges from new players and investigation on January 11 new investments in the USA steel and has 90 days to respond. markets and that has resulted In February, the Commerce For five of the last six quarters, in more aggressive customer Department recommended ArcelorMittal USA (LLC) has negotiations. To be successful, three possible remedies: posted financial losses. In 2017, we must take advantage of • a 24 percent global tariff on we did better than forecast and market conditions, improve our steel imports came close to breaking even operational reliability and create • a tariff of more than 50 percent for the year. But, as we pursue a dependable delivery system, on steel from a dozen countries, sustainability and profitability which will be a primary focus this including Brazil, China, India, this year, we must take advantage year. I am happy to report that Korea, Turkey and Vietnam of market conditions, urge we are on track to achieve our • a quota on steel imports that Washington to act on imports footprint savings goal of $230 would allow foreign countries and take advantage of the million one full year ahead of to export only 63 percent of benefits of digitalization. Most schedule. But we must continue the amount of steel they sent of all, we need to work together to look for additional ways to to the United States last year to ensure safe, healthy, quality operate more efficiently. We Keep in mind, there is no way working lives for our people. expect steel demand to continue to predict what the president may its modest growth this year decide. He is not bound by the The market and are committed to taking recommendations and could do In 2017, we made many impor- advantage of that opportunity. something completely different tant strides toward a more or do nothing. Either way, any sustainable future, but there is The political climate action to further curb imports still work to be done to become Imports remain a grave concern, will take time to institute and so the most cost-effective and spiking 15 percent last year, any benefit this action may bring productive workforce possible and ArcelorMittal USA is putting will not be felt immediately.