Luxembourg

Our presence in Luxembourg dates back to 1882. The global headquarters where the group’s central functions are based, are located in Luxembourg-city. With 4,244 employees comprising 53 nationalities, we produce more than two million tonnes of crude steel annually across nine industrial facilities, including electric arc furnaces at Belval and Differdange, rolling mills at Rodange; galvanising lines at Dudelange, wire mills at Bissen and Bettembourg, a special processing unit at Cofralux, an R&D centre in Esch-sur-Alzette and a mechanical workshop in Dommeldange.

We provide steel solutions for a number of cutting edge building projects. Recent achievements include beams for the One World Trade Center in New York City and the Mistral tower in Izmir, Turkey, both in 2014, the Titania tower, Madrid in 2012; metallic coating (Aluzinc) for cladding and roofing for the new Geoffroy-Guichard stadium in Saint-Etienne. We also produce high strength Usibor®, amongst the lightest weight steel for the automotive industry from our Dudelange, and Crapal® wire, some 6,000 kilometres of which we supplied to the Bordeaux vineyards in 2013 and 2014.

We maintain a corporate responsibility network with correspondents at each site, who since 2011 have built stakeholder engagement plans based on our four pillars of corporate responsibility on a yearly basis. Since 2010, they have actively contributed to our annual Luxembourg CR report as well as other CR activities and since 2011, this report has been aligned with the Global Reporting Initiative framework.

Message from our leadership

Michel Wurth, Chairman
Alex Nick, Vice-president

Leading the way

Stretching the lifecycle of steel: sheet piles in a circular economy

Message from our leadership

Michel Wurth, Chairman - ArcelorMittal Luxembourg

Alex Nick, Vice-president - ArcelorMittal Luxembourg

In 2015, ArcelorMittal in Luxembourg had its “Entreprise Socialement Responsable” (Socially Responsible Company) label renewed by INDR (National Institute for Sustainable Development and Corporate Responsibility) for a period of three years. The awarding of this label, which is issued after a stringent audit carried out by an independent consultant examining all the company’s different fields of activity, recognises the efforts made by ArcelorMittal in Luxembourg to develop the Sustainable Development approach it first embraced many years ago.

We see it as our social responsibility to work actively towards Sustainable Development.

The company already has a long-standing commitment to its stakeholders. This goes back to the early days of the steel industry, when the company introduced a social policy for its employees including health insurance and pensions and provided access to everyday consumer products via cooperative purchasing associations. Indeed, the management also contributed to setting up the Red Cross in Luxembourg in 1914.

Nowadays, ArcelorMittal continues to pursue this philosophy and extend it to all its stakeholders. The health and safety of its employees and co-contractors remain paramount to the Group. The journey to Zero Accidents remains a top priority. Throughout our operations in Luxembourg, our accident frequency rate has improved further and stood at 1.07 in 2015. This, albeit slight, improvement shows that progress can still be made.

We shall continue to address the challenge of a greener economy by manufacturing products designed to achieve this goal. Our Usibor® steel produced at Dudelange helps lighten the structure of vehicles and promote lower fuel consumption. At Differdange, our lighter, stronger beams used in skyscrapers all over the world offer a weight saving (and consequently CO2 reduction) of up to 40%. Belval has benefited from 35 million euros investment and can now supply its customers with wider, stronger and lighter sheet piles which also offer CO2 savings. Bissen manufactures Crapal® vineyard wire which is 2 to 16 times more resistant to corrosion than standard galvanised wire and features reduce coatings' thickness. This is what makes our products ideal for sustainable infrastructures.

Steel is a high-tech, infinitely recyclable product, ideally suited to a circular economy. We are developing our range of reusable sheet piles based on these principles. By channelling back onto the market “second-hand” sheet pile re-conditioned for optimal reuse, we can save natural resources and avoid further CO2 emissions.

Finally, ArcelorMittal in Luxembourg participated in “The Third Industrial Revolution”, a strategic study carried out by the Luxembourg government, the Chamber of Commerce and IMS, and took part in the related discussions, contributing the group’s experience on materials that can be recycled and the circular economy.

We are more strongly committed than ever before to producing safe, sustainable steel. We are confident that, with our products, we have a contribution to make to the modern world while respecting the natural and social environment and our stakeholders.

However, despite this positive message for Luxembourg steel, the future of the European and indeed the Luxembourg steel industry is uncertain. The market situation has turned out difficult over recent months, as a result of unfair business practices on the part of certain producer countries such as China.

The Middle Kingdom, facing huge overcapacity – equivalent to the cumulative production volumes of Europe and the NAFTA region (United States, Canada, Mexico) – has been flooding the world and European markets with steel sold at uncompetitive prices. This commercial dumping should be severely reprimanded, through the swift implementation of rapid, effective action by the European Union to discourage this kind of practice.

Furthermore, China is claiming Market Economy Status, while it does not remotely meet the conditions for such benefits. Only one of the five criteria required to be considered a market economy is currently met by the country. All steel producers have alerted the European authorities to the risks of this recognition. It would effectively negate all anti-dumping measures and open the door to the massive export of steel from China to Europe. This would have disastrous consequences for European steel which is already suffering significantly from these practices as we can see from the serious difficulties faced by the UK steel industry over recent months.

Finally, the steel industry supports European Union climate policy and welcomes the agreement reached at the climate conference held in Paris last December. Nevertheless, the proposed reform by the European Union of the emissions trading system could cost the European steel industry between 70 and 100 billion euros between 2020 and 2030. This is money which is sorely needed for research into evermore environmentally friendly techniques for producing steel.

The additional constraints imposed by this reform, which do not affect steel producers anywhere else in the world, will lead to a distortion of international competition and make manufacturers reconsider their industrial presence in Europe, with adverse effects both for society and the environment.

Why should we raise such matters here? Quite simply because these are threats which affect the future of European steel, one of the "cleanest" steels on the planet.

The efforts of the European steel industry in terms of the effectiveness of its environmental, energy and social approaches could be reduced to ashes if the competent authorities stand by and do nothing. The stakes are high – Sustainable Development could be seriously undermined if the right decisions are not taken and implemented in time.

Leading the way

Stretching the lifecycle of steel: sheet piles in a circular economy

Steel has long been recognised for its circular nature, owing to its total recyclability. ArcelorMittal knows that circular economics, however, needs to offer far more than this if we are to sustain our consumption of limited materials and production of carbon emissions. We need to challenge assumptions about ownership, revenue opportunities, and benefits to the environment, economy and society.

ArcelorMittal has implemented a lease model for its sheet piles that allows both customer and producer to benefit from renting, renovating and reusing these products. This enables us to promote steel as the material of choice for earth and water retention in sustainable construction projects.

When constructing quay walls, dams, underground car parks, tunnels, bridges and trunk roads, there are many ways of creating structures to retain earth or water, whether temporary or permanent. Sheet piles are Intended to slot into each other to create a sealed wall of steel, but since steel can be relatively costly per square metre of wall, concrete has tended to be a more popular solution.

ArcelorMittal has been working for many years to increase the relative value of its sheet piles by developing lighter, wider, more resistant sections. In a recent development we have started to rent out our sheet piles, which makes temporary steel solutions even more attractive.

For companies managing excavation projects, stocking a full range of sheet pile to suit the needs of every project is simply too costly. The option of renting these sections from ArcelorMittal means these companies can limit their locked-up capital, simplify logistics flows and handling, and use the most effective metal solutions for their work, significantly reducing the cost per square metre of steel compared to other solutions such as concrete.

“By renting out our sheet piles, we are meeting a genuine demand from our customers who no longer want to ‘own’ but rather ‘use’ the right sheet piles for their various construction sites. By reinventing what we supply, we can offer effective solutions for more projects and, at the same time, contribute towards Sustainable Development.”

François Gaasch, Executive Sales Manager Sheet Piles, ArcelorMittal Europe - Long Products

ArcelorMittal has developed several service centres which carefully re-condition used sheet piles and ensure that the products rented to the next building site are of impeccable quality. Even when our customers bear the costs of repairs, loss and transport, they emerge as winners with a flexible, cost-effective solution that enables them to reduce the environmental impacts of their projects.

The re-use of these sheet piles on several occasions in different projects is a clear example of a feasible circular economy business model in action, which is increasing the use of steel in temporary excavation projects and avoiding the use of less sustainable materials which cannot be recycled. With sheet piles, we have created a model that changes who owns the product, creates customer value from use rather than ownership, which gives us access to more customers and greater revenues from the same product.