Download - Steel Analyst Visit - ArcelorMittal
24th March 2010
ArcelorMittal BrazilSteel Analyst Community Visit
Disclaimer
Forward-Looking StatementsThis document may contain forward-looking information and statements about
ArcelorMittal and its subsidiaries. These statements include financial projections and estimatesand their underlying assumptions, statements regarding plans, objectives and expectations withrespect to future operations, products and services, and statements regarding future performance.Forward-looking statements may be identified by the words “believe,” “expect,” “anticipate,”“target” or similar expressions. Although ArcelorMittal’s management believes that theexpectations reflected in such forward-looking statements are reasonable, investors and holdersof ArcelorMittal’s securities are cautioned that forward-looking information and statements aresubject to numerous risks and uncertainties, many of which are difficult to predict and generallybeyond the control of ArcelorMittal, that could cause actual results and developments to differ
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beyond the control of ArcelorMittal, that could cause actual results and developments to differmaterially and adversely from those expressed in, or implied or projected by, the forward-lookinginformation and statements. These risks and uncertainties include those discussed or identified inthe filings with the Luxembourg Stock Market Authority for the Financial Markets (Commission deSurveillance du Secteur Financier) and the United States Securities and Exchange Commission(the “SEC”) made or to be made by ArcelorMittal, including ArcelorMittal’s Annual Report on Form20-F for the year ended December 31, 2008 filed with the SEC. ArcelorMittal undertakes noobligation to publicly update its forward-looking statements, whether as a result of newinformation, future events, or otherwise.
Agenda• ArcelorMittal Americas
– ArcelorMittal history and values– Long and Flat Carbon Americas Organisational Structures & Industrial presence
• ArcelorMittal Brazil
– Structure– Aligning Strategy– Key figures– Macroeconomic Vision Brazil
• ArcelorMittal Long Carbon Brazil
2
– Facilities and Product Mix– Positioning in the Value Chain– Health and Safety, Corporate Responsibility & Environment– Key Figures
• ArcelorMittal Monlevade
– ArcelorMittal Monlevade Overview– Product Applications – Production flow and equipment– Competitive strengths– Performance Highlights
• ArcelorMittal Monlevade Expansion project
• Q&A
ArcelorMittal
3
ArcelorMittal history and values
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The world's leading steel company, with operations in more than 60 countries
2009 revenues of $65.1 billion and crude steel prod uction of 73.2 million tonnes (8% of world steel output)
Several international Partnerships and Joint Ventur es
ArcelorMittal brand values: Sustainability, Quality and Leadership
ArcelorMittal Americas
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ArcelorMittal AmericasLong and Flat Carbon Structures
Long AmericasGerson A. Menezes
Group Management Board
Flat Carbon Americas Long Carbon Americas
Lakshmi Mittal (CEO) Sudhir MaheshwariAditya Mittal(CFO) Michel WurthDavinder Chugh Christophe CornierPeter Kukielski Gonzalo Urquijo
Flat AmericasLouis Schorsch
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Gerson A. Menezes
Central & SouthAugusto Espeschit
MexicoBill Chisholm
NorthP. S. Venkat
Controlling & Cont. Impr.Marc Ruppert
Engineering Proj.Paulo Salomão
ITNewton Lima
Louis Schorsch
Human ResourcesVanderlei Schiller
BrazilBenjamin Baptista
USAMike Rippey
CanadaJuergen Schachler
FinanceVaidya Sethuraman
Business OptimizationJim Ray
Government RelationsNeil Messick
Communications and CRBill Steers
Human ResourcesDale Laidlaw
MexicoBill Chisholm
EngineeringBill Ball
CCWest
Steelton
Indiana Bar
Georgetown
Vinton
LaPlace
CCEast
LongsMexico
LCNARegion/Facility
Steel plants Crude Steel Capacity
(ktpy)
Main rolled products
LCNA • Contrecoeur East• Contrecoeur West• Steelton• Indiana Bar• Georgetown• LaPlace•
• 1700 (with slabs)• 600• 600• 600• 500 (idled)• 600•
• Wire Rod, MBQ• SBQ, Rebar• Rails• SBQ, Wire Rod• Wire Rod• MBQ•
Long Carbon AmericasSteel Facilities
7
Point Lisas
Costa Rica
Acindar Villa Constitución
Piracicaba
Juiz de Fora
Monlevade
Cariacica
LZC
Córdoba LCCSA
• Vinton • 250 • Rebar
Longs Mexico
• Lázaro Cárdenas• Córdoba
• 2000• 100 (idled)
• Rebar, Wire Rod• Rebar
LCCSA • Point Lisas• Acindar VC• Monlevade• Juiz de Fora• Piracicaba• Cariacica
• 900• 1700• 1200• 1000• 1000• 600
• Wire Rod• Rebar, Wire Rod, SBQ• Wire Rod• Rebar, Wire Rod• Rebar• MBQ
LCA 15 steel plants 13,350 Mtpy --
Sparrows Point
• Products: • slabs, hot-rolled coil, cold-rolled coil, coated
steel products and plate. • Main customers:
• Distribution and processing, automotive, tubular products, construction, packaging, and appliances.
• Facilities:
Flat Carbon AmericasSteel Facilities
8
• Facilities: • Located at 8 integrated and mini-mill sites in 4
countries.• Operations
• Canada, the United States, Mexico and Brazil.
ArcelorMittal Brazil
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ArcelorMittal BrazilStructure
CEO
Paulo Geraldo de SousaBenjamin M. Baptista Filho
Long Carbon Central and South America
Augusto Espechit de Almeida
Long Carbon Americas
Gerson Alves Menezes
Flat Carbon Americas
Louis Schorsch
Flat Carbon South America
Benjamin M. Baptista Filho
Flat Americas Long Americas
Board of Directors
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Marcos A. MaiaAdilson Martinelli Vanderlei Schiller
VP ofFinance
VP ofControlling
VP ofHR & Institutional
Relations
Suzana Fagundes - GM
Legal Affairs
Wéllerson Ribeiro - GM
Purchasing Central and South America
• Quality• Leadership• Sustainability
Our values
Our vision
Our mission
•To be the most admired worldwide : “the reference in global steelmaking”.
•Establish a transparent and constructive dialogue t hat results in a favorable environment for ArcelorMittal Brasi l actions . Reflect the global positioning of ArcelorMittal Group (regarding its values and long term strategic guidance, sustainability and continued environmental and social performance). Contribute with
ArcelorMittal BrazilAligning Strategy
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Transforming tomorrowOur strategy
Our philosophy
Our commitments
continued environmental and social performance). Contribute with the interaction between ArcelorMittal Brasil and society.
•Consolidate relevant markets.Industrial excellence and market leadership. Continue growth strategy.
•Safety above all.Multi-cultures and ethics. See beyond. Guided towards performance. Team work.
•Surpass the value creation expected by our sharehol ders.Generate value to our customers. Make our company an exciting place to work at.
ArcelorMittal Brazil Key figures
2008 2009
Net Sales(MUS$)
EBITDA(MUS$)
12,370 7,747
4,014 2,024
• More than 1,500 MUSD were returned to the
shareholder.
• Volume sold was 1% above the budget.
• EBITDA Long 19% above the budget mainly due to
input prices, management gains and fixed cost
reduction.
ArcelorMittal Brazil (Long plus Flat) key figures 2009 results summary
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AM Brazil represented 35% of AM Group EBITDA and 1 2% of Net Revenues in 2009
OFCF(MUS$)
EBITDA Margin (%)
3,386 2,187
32 26
reduction.
• Good EBITDA margin even with the financial crisis.
� Brazilian economy is recovering faster than other economies and according to Economist Intelligence Unit (USA) will be the 6th economy in 2018 (GDP US$ 3,446 billions)
� It became 5th largest automobile producer , with up to US$11 billion investments announced for the next three/ four years, and targeting to reach 5 million units per year in 2014, 10% growth in 2010 forecast (3.5 millions units produced 2010). Export will increase 50% in 2010 reaching 750 mil units
� Big Projects announced for offshore Oil exploitation (Pre Salt), Iron Ore Mine expansion and Energy. Only 3 Hydroelectric plants in the North of Brazil (St. Antonio, Jirau and Belo Monte) means 300 kt of additional rebar consumption
Macroeconomic Vision Brazil
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additional rebar consumption
� Construction is now getting US$ 14 billions in subsidy and US$ 30 billions of investments in affordable house project – “Minha casa, minha vida” targeting to reach 1 million affordable houses between 2010/2011
� A significant investment in Infrastructure with ongoing Government Development Program (PAC) US$ 150 billions budgeted for the next three years (US$ 36 billions for 2010)
� World Cup in 2014 with US$ 9 billion investments, being 2.4 US$ billions in stadiums, others US$ 6 billions of transports & urban infrastructure, and US$ 0.5 bi in hospitality. For the Olympic Games in 2016 is forecasted in addition 13.5 US$ billion on investments
� According to the Brazilian Steel Institute (IABr), it’s expected additional steel demand of 1.1 million tons/year during the period of 2010 – 2016 due to 2014 World Cup and 2016 Olympic Games
ArcelorMittal Long Carbon Brazil
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ArcelorMittal Long Carbon BrazilSteel Plants
1.000
Crude Steel Capacity Ktpy
1.200
ArcelorMittal Monlevade
ArcelorMittal Juiz de Fora
15Total 3.850 ktpy600
ArcelorMittal Cariacica
1.050
ArcelorMittal Piracicaba
100
ArcelorMittal Sabará
ArcelorMittal Juiz de Fora
Capacity Ktpy
Drawn Bars
ArcelorMittal Long Carbon BrazilSteel Transformation Plants
16
240
100
ArcelorMittal São Paulo
Total 440 ktpy
Truss
Welded Mesh
Cold Deformed rebar
Annealed Wire
Nails
Tire Cord Shock Absorbers
Springs
ArcelorMittal Long Carbon BrazilMain Industrial Products & Applications
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Merchant Bars
Cables
Fasteners (CHQ)
Welding
Steel WoolOffShore Piping
Rolled & Cold Drawing Bars
Rebars
Annealed Wires PrestressedCable for concrete Gabions
ArcelorMittal Long Carbon BrazilConstruction Products and Agribusiness
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Belgo 60
Nails
Welded Meshes Trusses
Barbed WireGalvanized Wire
Downstream MarketSteelmakingUpstream
� Own iron ore mining
� Own forests
� Product mix in various market segments
� Direct service to
� Value added: drawn and transformed products for construction and
� Specialized mills
� Flexibility: Mini mills
ArcelorMittal Long Carbon BrazilPositioning in the Value Chain
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� Own forests
� SOL coke plant
� Pig iron based on charcoal
� CO2 credits
� Scrap collecting and processing
� Own hydroelectric power unit (140 MW)
� Direct service to construction companies and industrial clients
construction and mechanical bars
� Strategic joint ventures for industrial wire production
� Multi-product distribution network
mills
� Lower-cost integrated mills for specialties
� Leading technology
� Growth potential
Long Carbon Brazil
Health and Safety Long Carbon Brazil
Health and Safety frequency rate – Employees (cumulative)*
Continuous effort to improve Health and Safety involving all levels participation:
• Corporate campaigns: Care with Hands, Accidents
during Carnival Holiday, Crushing, Dengue
Mosquito, Influenza A H1N1 and Behavioral
• JTZ - Journey to Zero with focus on elimination of
Fatality and Lost Time Injuries
• Health and Safety Day
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0.901.04
1.70
2007 2008 2009
Frequency rate has been reducing year by year as re sult of a strong H&S Policy
* IISI-standard: Fr = Lost Time Injuries per 1.000.000 worked hours; based on own personnel
• Health and Safety Day
• Cross audits & Shop Floor Audits – SFA
• CIPA Meetings – Internal Commission for
Prevention of Accidents
• OHSAS 18001 certification/ recertification
• Safety Committee and Health Committee
integrating Long, Flat and Stainless
The corporate responsibility programs developedby the Long Carbon segment are developed inpartnership with local governments, in order topromote real transformations in the communitieswhere ArcelorMittal has industrial units. Here aresome 2009 highlights:• Over 770,000 beneficiaries
• 47 cities in Brazil benefited by ArcelorMittal’s programs
• Best results ever achieved in a V-day. 4,083 employees
of 11 Long Carbon units participated in the 2009 V-day,
Corporate Responsibility Long Carbon Brazil
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The initiatives are developed to strength the relat ionship with the communities
benefiting 3,517 people, with their volunteer work.
• Two Annual Blood Donation Campaigns, involving 919
employees in 8 industrial plants.
• ArcelorMittal, through Fundação, sponsored 46 cultural projects. More than 200,000 were benefited, including 93 professionals that graduated in the art and culture postgraduation
• Fundação also launched the Welding City program in Juiz de Fora, that enables and qualifies youngsters to work as welders and blowtorch operators.
Seeing and living is one of the social programs developed in 2009. The initiative diagnoses visual acuity problems in public school children. At the end of the process, they receive free eyeglasses.
Carbon Projects ���� Regulated and Voluntary Markets
Carbonization Project:
Forest Project (PPF):650.000 tCO2 / 5 years CDM
CDM
Estimated Register: 2011
Environment Long Carbon Brazil
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Carbonization Project: 250.000 tCO2/ year
Industrial Project: 450.000 tCO2/ year
Blast Furnace Gas Project: 46.555 tCO2 years VCS
CDM
CDM
Estimated Register: 2010
Estimated Register: 2011
Estimated Register: 2011
CDM – Clean Development MechanismVCS – Voluntary Carbon Standard
Environmental Management Systems (EMS)• ISO14000 in all plants
• Zero Industrial Effluents Discharge
• Water recirculation > 99%
• SAP Environment, Health & Safety Management
• Residues and By-Products Module implemented in Long Carbon Brazil and Acindar
• By-Products Sales, Marketing and Excellence (BSME)
• Long Carbon Brazil By-Products Sales: KR$ 21.519 (2009)
EAF Slag Model House
Environment Long Carbon Brazil
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• Long Carbon Brazil By-Products Sales: KR$ 21.519 (2009)
• Non Recovered Residues Index (Kg/t crude steel): 11,75 (ArcelorMittal Monlevade)
AWARDS• AM Monlevade and AM Juiz de Fora recognized with
Environmental Management Award of Minas Gerais State
• “Prêmio Época de Mudanças Climáticas” – Época Magazine
• “Prêmio Dê Crédito ao Meio Ambiente” – Environment Ministry
and Industrial Magazine
Climate Change Award
ArcelorMittal Long Carbon Brazil Key Figures
26%
74%
Domestic
Exports
2009 Shipments
2008 2009
Steel Shipments(kt)
EBITDA(MUS$)
3,535 3,047
1,466 1,060
ArcelorMittal Long Carbon Brazil key figures
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More than 30% of Market Share in Brazil
OFCF(MUS$)
EBITDA Margin Steel (%)
1,370 949
36 36
2009 Results
• Steel Shipments 4% above the budget
• EBITDA 248 MUS$ above the budget
• OFCF 24% above the budget
• Margin EBITDA was 6% higher than the budget
reaching 36%
ArcelorMittal Monlevade Overview
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Crude Steel Capacity 1,200
Ktpy
Monlevade Plant is an integrated mill located in João Monlevade 120 km far from Belo Horizonte. The plant consists of:
- 1 sinter plant- 1 blast furnace- 2 converters (1 stand by)- 1 ladle furnace- 1 continuous casting machine (6 strands) - 2 rolling mills
ArcelorMittal Monlevade dedicated to production of high quality wire rod
Wire Rod ApplicationsSteel Cord / Bead Wire
Suspension Springs
Welding / Electrodes
Shock Absorbers
Petrol Exploitation
ArcelorMittal Monlevade
26
90% of AM Monlevade wire rod are destined to Specia l Applications
Wire Rope
Steel WoolCold Heading Quality
BLAST FURNACE1.120.000 tpy BOF LADLE
FURNACECONTINUOUS
CASTERROLLING MILLS
1.300.000 tpy
Forno Ignição
ar ar arar
SINTER PLANT1.750.000 tpy
Production flow and equipment
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FURNACE CASTER 1.300.000 tpy
1.250.000 tpy
• Monlevade production flow allows production of specialties with low cost.
• Production of specialties with short route (billet casting) was developed by Monlevade team
1.750.000 tpy
Main drivers for AM Monlevade competitivenessIron ore mine
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Andrade mine
• Iron ore mine situated close to Monlevade Steel Plant
• It is linked to the plant by it’s own rail road with 11 km
• It currently supplies the sinter plant with 1.5Mtpy of sinter-feed
• In the period of 2005 to 2009 it was leased by VALE
Main drivers for AM Monlevade competitivenessVertical integration with access to iron ore
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• ArcelorMittal regained possession of the mine from VALE in Nov. 2009
• The current treatment of iron ore is crushing and screening of hematite in dry conditions
• Expansion project is on going for increase the production for 5.6Mtpy optimizing the reserves of itabirite and hematite
ArcelorMittal Monlevade is in close proximity to Andrade iron ore mine – only 11KM away
1) Characteristics• Hematite: iron content : >60%• Itabirite: iron content : 38 to 60%
2) Chemical composition of Andrade sinter-feed - aver ageItem Content (%)Fe 65.5SiO2 4.2P 0.042
3) Resources ( million tons )
Main drivers for AM Monlevade competitivenessIron ore mine
30
3) Resources ( million tons )
4) Logistics• Iron ore treatment facilities:
2.0 Million tons/year, considering 3 shifts working system• 11 km of exclusive railroad.
5) Current production level• 1.5 Million tons /year
HematiteItabirites
(*)Others Total
Total 94.8 Mt 318.3 Mt 13.1 Mt 426.2 Mt
ISO 9001:2000PMQ: Silver Level
BSC / Strategic MapPMQ: Gold Level
Learning Committees
Six SigmaVariability Reduction
PMGAePNQ
CSRNational
Sustainability Award
Main drivers for AM Monlevade competitivenessManagement System
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1988
Management System TQC
1990
Daily Routine Management GRD
1992
Management by Policies
2000
Six SigmaTraining
2002
PGQESupplier / Community
2003 2004 20051993
ISO 9002/
PQTO
(CEDAC room)
1997
GRD Audit
1999
ISO 14001
OHSAS
18001
2001
Reduction
2006 2007
Vincent Gaeremynck
Award: Bekaert prize Best worldwide supplier
2001
National Quality
Award
2006
IMP
RO
VE
ME
NT
CY
CLE
(IM
PR
OV
EM
EN
T &
INN
OV
ATIO
N)
STRATEGIC POLICIES
DDPPAA
CORRECTIVE ACTION(Three Generation Report)
TARGETS & PROJECTS
CCSTANDARDIZATION
PROBLEM IDENTIFICATION TO ACTION PLAN
Main drivers for AM Monlevade competitivenessManagement System
32
IMP
RO
VE
ME
NT
CY
CLE
(IM
PR
OV
EM
EN
T &
INN
OV
ATIO
N)
STA
ND
AR
DIZ
ATIO
N C
YC
LE
(DA
ILY
RO
UT
INE
WO
RK
)
PROJECTS EXECUTIONDDASSESSMENT
MEETINGS
DD WORK EXECUTION AND TRAINING
AAABNORMALITY ANALYSIS
SSSTANDARDS
CONTROL ITEMS
CCFOLLOW-UP & AUDITS
CCTechnical Committee
SHAKEDOWN(Chronic Problems)
Solution on more skilled level• Technical Knowledge• Method - Black and Green Belts
Main drivers for AM Monlevade competitivenessManagement System
General Manager ArcelorMittal Monlevade
WIRE ROD COSTREBLOW INDEX / REBLOW INDEX /
shiftshift
Steelmaking
Manager
Steelmaking
Sector Manager
Foremen / Workers
(Daily / Shift / Heat)
GMB
LCA
LCCSA
ArcelorMittal Brazil(Long Steel)
33
WIRE ROD WIRE ROD
OUTPUTOUTPUT
MANAGEMENT GAINS
BILLET BILLET
PRODUCTIONPRODUCTION
BILLET BILLET
PRODUCTIONPRODUCTION
TAPTAP--TOTO--TAPTAP
UTILIZATION UTILIZATION
RATERATE
BREAKOUT BREAKOUT
INDEXINDEX
TAPTAP--TOTO--TAP / shiftTAP / shift
# BREAKOUTS/ # BREAKOUTS/
shiftshift
# STRAND FAILURE # STRAND FAILURE
/ shift/ shift
CAST SPEED CAST SPEED
REDUCTION / shiftREDUCTION / shift
GENERAL ADMIN. EXPENSES
AVERAGE WEIGHT AVERAGE WEIGHT
PER HEAT / shiftPER HEAT / shiftCatch ball
Catch ball
EBITDAEBITDA
SAFETY
SG&A
OFCF
Catch ball
Main drivers for AM Monlevade competitivenessPeople
5665
78
94 97 97 98 99
Employees Qualification Secondary School or Higher - %
Management / Academic Qualifications
• MBA ------------------------------------------ 17
• Graduated with Specialization --------- 59
• Master of Science ------------------------ 36
34
2002 2003 2004 2005 2006 2007 2008 2009
Six Sigma Background
• Black Belts (Engineers): ----------------- 74
• Green Belts (Technicians): -------------138
Main Programs:- Technical Level Graduation Program (metallurgy, mechanic and electricity)
- Plant Training Program (On the Job, Safety, Operational Procedures, etc)
- Post Graduation Program
- ArcelorMittal University Program (Management)
� Breakfast with Workers, Integration Games, Summer Camping for Workers’ Children and Employees’ Families Visits
� Administrative Meetings, Three-level Meetings, Communication Chain, Organization Morale Survey and Union Relationship Program
Integration
Recognition
Communication
Main drivers for AM Monlevade competitivenessPeople
35
Recognition� Safety, Operational and Technical/Administrative Merit Awards; Rewarding
Program for Workers’ Suggestions: CEDAC and Nota 10; 20 Years of Work Award (“Velha-Guarda” Watch) and Employee of the Year
CSR – Corporate Social Responsibility� Volunteering Program,Environmental Educational Programs, Tomorrow's Citizens,
Town Economical Development Support, Job and Revenue Generation Program, Cultural Programs, Learning Quality Program and Support for Co-Contractors Corporate Social Responsibility
Performance Highlights
36
Safety frequency rate: Own and Co-contractors
4.83
3.15
1.49
2.40
0.82
1.51 1.42
0.901.31
0.27
0.23
0.150.17
0.09 0.090.06
0.09
Safety
Safety severity rate: Own and Co-contractors
37
0.82 0.90
2002 2003 2004 2005 2006 2007 2008 2009 2010
0.040.06
2002 2003 2004 2005 2006 2007 2008 2009 2010
Main Programs� By-example Leadership� Safety risk agents program � Special Safety training program for Supervisors� Cross-check auditing (LCCSA inter-units) � Safety Minute� Safety Patrol
ytd ytd
HPS
Sinter Hot Metal
Production (Ktpy)
1,700
1,383
1,580 1,613 1,666 1,671 1,6541,592 1,076971 1,003
1,091 1,102 1,1039851,008
38
Billets Wire Rod
2002 2003 2004 2005 2006 2007 2008 2009 2002 2003 2004 2005 2006 2007 2008 2009
1,2111,113 1,127
1,233 1,218 1,213
1,0841,119
2002 2003 2004 2005 2006 2007 2008 2009
1,1801,135 1,0731,200 1,153 1,141
1,0631,130
2002 2003 2004 2005 2006 2007 2008 2009
Operational excellence
Coke Rate
kg/to
n
387 373404
341 341 346385
325
335354
t/m2 .
day
35.6
40.539.839.539.9
38.938.9
41.039.7
HPS
With HPS (Hybrid Pelletized Sintering) Andrade Mine sinter feed utilization was increased from 49 to 100%
Sinter Plant Productivity
39
97.78 97.83 97.83 97.77 97.88 97.87 97.88 97.8797.81
2002 2003 2004 2005 2006 2007 2008 2009 2010
90.2
82.281.790.190.8
86.186.2
91.2 90.2
2002 2003 2004 2005 2006 2007 2008 2009 2010
Utilization Rate - Caster (Calendar Time)
%
2001 2002 2003 2004 2005 2006 2007 2008 2009 20102002 2003 2004 2005 2006 2007 2008 2009 2010
%
ytd
ytd
ytd
ytd
Metallic Yield
Water Recirculation & Consumption
� Eliminating the industrial effluents discharge
� Water Tanks building
� Optimize pumps concerning leakage and capacity
� Review concepts concerning operational procedures
� Review equipments automation
91.196.8 98.4 98.8 99.0 98.9 98.7 98.9 98.2 98.4 98.8
2.4
18.26.4 3.6 3.1 1.8 2.0 2.0 2.1 3.0
Environment
40
42.0 39.0 37.0
15.0 13.0 11.8 11.811.7
58.0
2002 2003 2004 2005 2006 2007 2008 2009 2010
� Review equipments automation
� Channels Interconnection
Non-Recoverable Residues Index (kg/t)� Environmental Management System
� Use of Rolling Mills and Caster Scales (Sinter Plant)
� Use of lime fines (Sinter Plant)
� Use of Dedusting powders (Sinter Plant)
� Sell of Blast furnace Slag (Cement Companies)
� Transform Steelshop Mud in Briquettes (SteelShop)
� Use of Rolling Mills Mud (Sinter Plant)
� Destination of all the oily residues (Cement companies)
� R&D - New applications (Steelshop Slag – Road / Railway)
2.43.6 3.1 1.8 2.0 2.0 2.1 3.0 2.1
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Recirculation Rate (%) Water Consumption (m3/t crude steel) ytd
ytd
ArcelorMittal Monlevade Expansion Project
41
Coil Market* Sales x Capacity(Monlevade Expansion)
3250
2100
1.5002.0002.5003.0003.5004.000
ktIn order to meet market demand, ArcelorMittal will invest
ArcelorMittal Monlevade expansion (Mt) Monlevade expansion is being reinitiated and scope is under review
�Following the growth of the ArcelorMittal Brazil long
market and maintaining market share�Taking advantage of Monlevade highly competitive
cost and quality and leverage low cost Andrade mine
located nearby
42
-500
1.000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Year
Sales Monlevade Exp Capacity
Reinitiating growth plan to capture market growth
located nearby
Further project understudy
�Step 2: Cariacica and Juiz de Fora: increase 1.4 million
tons per year of Rebar, Structural Sections and SBQ
Capacity constraint in Brazil to be tackled by resuming investments in Monlevade
Production (ktpy)
Sinter Plant Blast Furnace Steelmaking Rolling Mills
SIM
ULT
AN
EO
US
B
LOW
ING
1,750 1,120 1,2001,150
WR #2
WR #1
EXPANSION
EXISTING
Monlevade Plant Flow – After Expansion
BOF LF CCM
43
2,240 2,400 2,3004,050
SIM
ULT
AN
EO
US
B
LOW
ING
Forno Ignição
ar ar arar
2,300 1,120 1,200
TOTAL
Rationale of the projects:�Sustain AM’s market share in the region�Take advantage of the Monlevade competitive production cost, high quality products and leverage low cost iron mine;�Brazilian economy is estimated to become the 6th largest economy in 2018; �Increase in steel consumption resulting from large projects : offshore oil exploitation, iron ore mining, power generation, infrastructure development, preparation for the World cup football competition in 2014 and Olympic games in 2016.
1,150
Q&A
44