January/February 2018 Vol. 11, No. 1 No. 11, Vol. January/February 2018 ArcelorMittal USA 1 Company 1 Community1 Company 1 Magazine 03 Brett: Action and resiliency 03 09 13 17 A journey of discovery A salute to the U.S. Navy Family ties Environmental stewardship Meet Cleveland’s new VP/GM Our steel in America’s aircraft A legacy going back decades Protecting our watersheds carriers Summer Paris Jolice Pojeta Cory Myers Kelly Nissan and Scott Posey 2 1 Company 1 Community 1 Magazine 1 | ArcelorMittal USA | January/February 2018 > Global News > Global News Aditya Mittal on the evolution of Third quarter results advanced manufacturing in 2017 and our CEO’s letter to employees • 9-month net income of Industry 4.0 and digitization are becoming buzzwords in our $3.5 billion, compared with $1.4 billion in 2016 business. Aditya Mittal explains what these mean for the • Q3 steel shipments of 21.7 million metric tons, an increase strategic direction of our company, now and in the future of one percent compared with Q2 and a 6.8 percent increase people with the analytical skills We have set up a dedicated compared with Q3 2016 to leverage data and systems research and development center In Mr. Lakshmi Mittal’s to get the best out of a digital to look at mega-trends and letter to employees, he organization will be a key long-term transformational addressed ongoing safety driver in making the most of technologies, including 3D concerns that weigh on the opportunities Industry 4.0 printing. 3D printing, or additive the company. will bring. manufacturing, is changing how “Unfortunately, despite We already see the products are designed, sold and the record LTIFR of 0.67, I must benefits of this in our production delivered to customers. Today conclude that our health and processes. For instance, we can we see 3D printing as a consumer safety results this year are not improve our yield by predicting gadget for prototyping and, good,” he wrote. “We have had product quality in advance; increasingly, for specialty batch 18 fatalities so far this year and we can reduce our costs production because its high costs, – seven more than in the same through predictive maintenance. material limitations and slow period last year. It is devastat- Algorithms, combined with new production speeds are limiting ing to have lost so many computing power, allow us to its wider adoption. However, colleagues and what is most “listen” to blast-furnaces to better once this technology matures, distressing is that all these understand their health and more most parts for the goods we fatalities could and should have accurately plan maintenance and consume will be 3D printed. This been avoided. I have spoken re-lines. Because blast furnace is something that is very much Lakshmi Mittal, chairman about this topic on many re-lines are one of the most on our radar. and CEO occasions, but we must get on expensive and time-intensive As with the previous top of it. The only satisfactory repairs we carry out in steel revolutions, the benefits of In November, ArcelorMittal outcome is to eliminate all plants, the cost benefits here advanced manufacturing will, announced the results for fatalities from our workplace. are considerable. I believe, outweigh the negatives. the third quarter of 2017. Everyone should be able to To remain competitive, But we must be conscious of the come to work and return home automation and increased implications, particularly from a The highlights are: safely at the end of the day.” connectivity will be key, but social perspective. The effects of • LTIFR at a record 0.67, Aditya Mittal, group CFO and CEO, ArcelorMittal Europe we should also remember that globalization are already causing compared with 0.72 last breakthrough developments significant political backlash which quarter and 0.84 in Q3 2016 Read Mr. Mittal’s As a global manufacturing is driving the transformation could bring both disruption and could intensify if jobs start to • Q3 Ebitda of $1.9 billion; 9 entire letter to business, advanced manufactur- I now address. Robots are opportunity to our industry. disappear because of automation. month Ebitda of $6.3 billion, employees on our ing – the so-called fourth increasingly able to interact The real challenge for us – and, Leaders around the world must compared with $4.6 billion in company’s internal website, industrial revolution, or Industry with their environment and each of course, this is also an opportu- carefully consider how to make the same period last year (36.4 myarcelormittal.com. 4.0 – is very, very relevant to us. other, making their integration nity – is to manufacture materials sure everyone benefits from this percent increase year on year) This new chapter in the story into manufacturing a reality. in new ways, such as 3D printing. technological revolution. of manufacturing is possible I see the technological because of the growing power impact of advanced manufactur- of artificial intelligence to collect ing on our industry in two and process “big data” and then inter-connected, but distinct, transmit it via “The Internet of ways – those which enable Things” (IoT). It is a confluence incremental change and those > Global News of software and hardware which which could completely transform is powering a revolutionary how we do things. transformation. Incremental change relates The concept of advanced to the evolution of the smart manufacturing is not new. It factory. IoT connects industrial Steel from Luxembourg and Brazil has been happening since the objects to create value from introduction of steam and sensing, data collection and mechanical production at the analysis, so the smart factory end of the 18th century. As can, using artificial intelligence, featured in unique solar project with the previous three industrial bring machines, objects and revolutions, this fourth revolution humans together to self-organize will massively change how we in the most efficient manner. make things. Concepts that When it comes to the were economically impossible mining and metals industry, one will become the new norm. of the companies that has fully Industry 4.0 will create committed to the concept of the many opportunities to improve smart factory – or in this case the productivity, quality and smart mine – is Rio Tinto. First, efficiency and change the way they automated some of their supply chains operate. For haul trucks – the size of houses example, the shift to offshore – which transport their mined manufacturing may reverse as products. Since then, Rio has labor costs become less of a automated drilling, fixed plant competitive advantage in an and even rail haulage. Today about increasingly automated world. 70 percent of their haul fleet is This raises new challenges, automated, enabling each truck to including the social impact of operate for an extra 1,000 hours, the shift from human labor to while cutting costs by 15 percent. automation. Industrial revolutions Each truck is fitted with 45 have tended to upgrade jobs sensors and generates about five towards higher skill sets, but terabytes of data daily. Similarly, given the sheer pace of change each processing plant uses as in today’s technologically much as 30,000 sensors each. innovative world, this transfer And then there are the trains, will need careful management. loaders and ships, each using Speed sets this latest still more. Properly exploiting revolution apart from its and integrating this quantity predecessors. More than 100 of “big data” has a huge impact years passed before the second on productivity, bringing real industrial revolution introduced competitive advantage. electrified mass production. It While we may not yet be took a further 70 years before quite as advanced as Rio, we the computer and the internet are also integrating the concept came online. And now, only 45 of the smart factory into our years later, we see this latest operations, introducing more revolution integrating IoT into and more automation and With seasonal floods in Pantanal in ind, the client turned to corrosion-resistant steel from ArcelorMittal Luxembourg. the production process. connectivity. We still employ The increasing affordability around 200,000 people around ArcelorMittal steel was used in “We supplied 53 metric imports, logistics and environment preservation and of these technologies and their the world, but they are increas- the Sesc Pantanal solar power tons of weathering long-lasting ArcelorMittal International eco-tourism. A large complex convergence through new levels ingly in more highly-skilled jobs, plant in the Brazilian state of Mato steel. It develops a protective worked together to meet within the reserve includes the of connectivity and ever more with a lot of the heavy lifting Grosso. The plant is located in layer when oxidized,” explained the customer’s needs. Hotel Sesc Porto Cercado Hotel, powerful computing systems, done by automation. Having the Sesc Pantanal Private Natural Johann Ferrareto, commercial This collaboration resulted the Sesc Baía das Pedras park, Heritage Reserve, a picturesque technical support, ArcelorMittal in a successful project”, sais dedicated to environmental mix of rivers, streams, permanent International. Lucila Delarisce, commercial education, and Sesc Poconé – and seasonal floodplain freshwa- In addition to the W sections, management analyst at a center focused on socio- What is ‘The Internet of Things?’ ter lakes, shrub-dominated Cuiabá DBA, the contractor in ArcelorMittal Brazil. environmental actions. According to Forbes, “This is almost anything else you wetlands and seasonally flooded charge of the works, sourced Sesc Pantanal, Brazil’s “Thirty percent of the the concept of connecting any can think of. This also applies forests. Interestingly, the solar the cut and bend rebar for the largest private reserve spread energy consumed in the site device with an on and off switch to components of machines, plant itself will spend half the foundation of the structure over 108,000 hectares, is is expected to be generated to the internet (and/or to each for example, a jet engine of year submerged, and it required from ArcelorMittal Brazil.