Global strategy and monthly highlights
In 2007, the Group announced 35 transactions, of which 14 were completed for a capital outlay of $12.3 billion including the assumption of debt. Key milestones during the year 2007 were as follow.
January 2007
ArcelorMittal sells Huta Bankowa, located in the South of Poland, to Alchemia SA Capital Group, as part of Mittal Steel's commitment to the European Commission during the merger process.
February 2007
ArcelorMittal contracts a joint venture agreement with the Bin Jarallah Group for a seamless tube mill in Saudi Arabia. The mill will have a capacity of 500,000 tonnes per year; the major part of tubes produced will be used in the oil industry and the remainder for pipelines.
March 2007
ArcelorMittal builds a new Steel Service Centre in Krakow (Poland). This facility will have a processing capacity of about 450,000 tonnes per year and will strengthen the existing de-coiling and slitting facilities in Huta Sendzimira and in Bytom.
ArcelorMittal holds its Investor Day in New York and Lázaro Cárdenas on March 27-28, 2007. President and CEO, Lakshmi Mittal, introduces the three dimensional growth strategy for reduced risk (sustainability) and continued growth consisting of product, value chain and distribution.
April 2007
ArcelorMittal finalises the acquisition of Sicartsa, from Grupo Villacero, leading to the creation of Mexico's largest steel producer. Sicarsta is a fully integrated producer of long steel, with an annual production capacity of about 2.7 million tonnes and with facilities in Mexico and Texas (United States). ArcelorMittal has also entered into a 50/50 commercial joint venture with Grupo Villacero.
June 2007
ArcelorMittal launches its new global brand. Reflecting the company's aspirations, the brand's vision 'transforming tomorrow' is supported by three main values: Sustainability, Quality and Leadership. The brand launch is an essential part of the integration process, creating a common bond for all employees. ArcelorMittal also launches its &#xu2;018boldness changes everything' global advertising campaign.
ArcelorMittal starts a share buy-back programme to repurchase class A common shares up to a maximum aggregate amount of $590 million, or up to a maximum of 27 million class A common shares, to be used either for supporting potential corporate opportunities or for cancellation.
July 2007
ArcelorMittal is granted concessions to develop mining, transportation and logistics activities by the Republic of Senegal in the Faleme region (South East Senegal). This integrated mining project will encompass the development of the mine in four locations, comprising both hematite and magnetite deposits, the building of a new port in Bargny near Dakar and the development of approximately 750 km rail infrastructure to link the mine to the port.
The European Works Council (EWC) of ArcelorMittal is installed. The ArcelorMittal EWC represents all employees from within the EU27,130,000 employees in total, and has 54 members.
ArcelorMittal acquires two steel tube businesses from Vallourec (France). Both companies enjoy strong positions in the European steel tubes market. This acquisition underlines ArcelorMittal's strategy to expand its business in the automotive sector, and further strengthens the Company's pipes and tubes business.
August 2007
A landmark delivery of 580 tonnes of steel, milled in ArcelorMittal Differdange (Luxembourg), is used in the construction of the World Trade Centre Memorial in New York City. The jumbo beams represent approximately 20% of the steel used for the project.
ArcelorMittal and RAG Beteiligungs-AG sign an agreement concerning the acquisition of the 76.88% stake directly held by RAG in Saar Ferngas AG Saarbrücken. Saar Ferngas is the largest gas distribution company in Saarland and Rhineland-Palatinate in Germany. This agreement is an opportunity to increase synergies with ArcelorMittal's regional energy network.
ArcelorMittal and Noble International Ltd., North America's largest producer of laser-welded steel products, complete the transaction to combine their laser-welded tailored blanks businesses, for the benefit of their global automotive customers.
September 2007
ArcelorMittal invests $18 million in a new cut length line for hot rolled coils in Ostrava (Czech Republic). The new Steel Service Centre will benefit from significant logistics and cost competitiveness, while being in line with ArcelorMittal's development strategy in Central and Eastern Europe. This facility has a processing capacity of 250,000 tonnes per year and will start operating in mid-2008.
ArcelorMittal owns 100% of Arcelor Brasil after having completed the acquisition of all its outstanding shares.
ArcelorMittal holds its Investor Day in Paris and South Africa on September 11-13 2007.
October 2007
ArcelorMittal and Borusan, one of Turkey's leading steel producers, announce a 50/50 joint venture partnership, consisting in a $500 million investment in the construction of a new hot mill in Gemlik. This facility will offer high grade products for the Turkish market and is planned to start operating by 2010 with a capacity of 4.8 million tonnes.
ArcelorMittal acquires a 70% in Carminati Distribuzione S.r.l, one of the leading steel distributors in Nothern Italy, which sold over 75,000 tonnes in 2006 with a turnover of euro50 million.
November 2007
The Extraordinary General Meetings of shareholders of ArcelorMittal and Arcelor approve the merger of ArcelorMittal into Arcelor, to be renamed ArcelorMittal. This merger is the second step in the two-step merger process between Mittal Steel and Arcelor, and is effective on November 13, 2007.
ArcelorMittal purchases a 100% stake in Galvex OÜ, the Estonian privately owned steel galvanizing line. In 2006, Galvex produced 190,000 tonnes of hot dip galvanised steel, mainly for the construction sector, with sales totalling euro125 million.
ArcelorMittal is awarded two gold medals for new products it unveiled at the Batimat construction fair. The Golden Innovation Medal is granted to the solar panel Arsolar®, and the Golden Design Medal to the Angelina® beam.
ArcelorMittal signs a Memorandum of Cooperation with the Republic of Mozambique, which aims to develop synergies and plan further investment in the steel industry, and in the mining of raw materials. ArcelorMittal plans to build a new bar rolling mill with a yearly capacity of 400,000 tonnes. ArcelorMittal also announces a joint venture partnership with the Mozambique-registered company Black Gold Mining (Moc) Lda. The Group acquires a 35% stake in the joint venture company, Rio Minjova Mining and Exploration Company, at an initial cost of $2.5 million.
ArcelorMittal and Kalagadi Manganese, a South African manganese development company, start a 50/50 joint venture which will see the development of a manganese mine, beneficiation plant, sinter complex and a smelter complex in Coega. The project, due to start in 2010, overlies the Kalagadi Manganese Basin, a world-renowned source of manganese ore containing 80% of the world's known manganese resources.
ArcelorMittal invests in Greenfield Longitudinal Submerged Arc Welded pipe mill in Nigeria with a capacity of 300,000 tonnes per year. This investment, welcomed by Nigerian National Petroleum Corporation (NNPC), gives ArcelorMittal access to a major oil and gas market. The construction of the mill is due to begin in early 2008, with production due to start in 2010.
ArcelorMittal acquires a 12.6% equity stake in General Moly, Inc. for a total consideration of $70 million. General Moly, Inc. is a US based molybdenum mineral development, exploration and mining company.
December 2007
With the aim to increase its commercial presence in the UK, ArcelorMittal acquires NSD Ltd., a leading UK steel distribution company specializing in the sale of heavy sections and tubes.
ArcelorMittal purchases Slovak ferro-alloys manufacturer OFZ, which manufactures a wide range of ferro-alloys and cored wires. This facility has an operating capacity of 150,000 tonnes per year.
ArcelorMittal acquires 28% equity interest in China Oriental Group Company Ltd. for $644 million. ArcelorMittal becomes the second largest shareholder of this company, which manufactures and sells steel products such as billets, strips, H-beams, cold rolled and galvanised strip. ArcelorMittal also signs a landmark agreement with China Oriental, with the aim to transform the company into a leading producer of heavy sections in China thanks to technology sharing, technical expertise and know-how.
ArcelorMittal acquires M.T Majdalani y Cia. S.A, the leading stainless Steel Service Centre and distributor in Argentina, and consolidates its position in the South American stainless distribution market. This company is specialised in flat stainless steel products with cut to length and slitting facility.
ArcelorMittal signs a Greenfield project with the administration of the Tver region in Russia. The Group will build a steel complex, with a capacity of one million tonnes of steel and two bar mills.
ArcelorMittal acquires 100% of the shares of the Austrian steel distribution company Eisen Wagner GmbH. With its 60,000 tonnes of steel products sold in 2007, Eisen Wagner is one of the leading steel distribution companies in Austria.
In order to strengthen its stainless steel business in South America, ArcelorMittal purchases Cinter S.A., an important stainless steel tube producer in Uruguay. With 200 employees and 3 sites, Cinter develops specialties that complement its stainless business.
ArcelorMittal plans to build a $380 million beam mill in Contrecoeur (Canada) with a capacity of 800,000 tonnes. Flat carbon steel production will be consolidated in Hamilton and long carbon production in Contrecoeur.