Mexico

We operate six facilities in three ports in Mexico and maintain a corporate and sales office in Mexico City. With a steel production capacity of more than 6.5 million tons per year and employing more than 6,000 individuals, ArcelorMIttal Mexico is the largest employer in the Michoacan State and Lazaro Cardenas Municipality, where its largest facilities are located. In 2015, ArcelorMittal Mexico producted more than 4 million tons of steel and invested over US $800,000 in its communities.

Mexico has faced significant challenges in sustainable development in recent years, in being a trusted user of air, land and water, finding more ways to use energy efficiently, and ensuring we have the skills to continue to innovate with the next generation. In all these areas we are making positive progress, which you can read about in our sustainability report.

Message from our leadership

Victor Cairo, CEO
ArcelorMittal México

Leading the way

Developing present and future talent

Message from our leadership

2015 was a year of great challenges. On the one hand, we saw a contraction on the global economy that hit all commodities such as oil and copper, as well as the iron and steel industry. The slowdown in the demand from China and emerging countries produced an increase in the reserves of raw materials and prices fell as an impact of this phenomenon.

The challenging environment caused a decline in our production, which decreased by 0.7 million tonnes compared to 2014. In addition to this, we witnessed how steel imports from countries like China, Brazil, and Russia (many of them at unfair competition) grew substantially, negatively impacting the domestic market.

On the other hand, a challenge that we assumed during 2015 was the evolution of our sustainability strategy, where we evolved our four corporate responsibility pillars (Investing in Our People, Making Our Steel Sustainable, Contributing to the Development of our Communities, and a Transparent Government) - which for several years were the framework for accountability - into the consolidation of 10 outcomes for sustainable development, relevant to both the company and our stakeholders.

The 10 sustainable development outcomes that we set are:
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 of resources and high recycling rates.
5. Trusted user of air, land and water.
6. Responsible energy user that helps create a lower carbon future.
7. Supply chains that our customers trust.
8. Active and welcome member of the community.
9. A pipeline of talented scientists and engineers for tomorrow.
10. Our contribution to society measured, shared and valued.

These outcomes are directly related to the impacts our industry generates and the goals we want to accomplish in the long run. Some examples are: the goal of achieving zero accidents, reducing our carbon footprint, reusing large amounts of water, generating thousands of jobs and being more efficient in energy use.

Now, regarding our performance in 2015, I must start with safety, a fundamental pillar of our goals as a business unit. We must recognise that we had a setback in the Lost Time Injury Frequency Rate, since we went from 0.33 to 0.45. However, it is important to note that the Total Injury, (not only those involving lost time injuries, but also those minor injuries that required only the application of first aid) showed a decrease of 42 cases, representing an improvement of 13% compared to 2014. This confirms the sustainable positive trend we have followed for the past 7 years. Also, the 248,000 hours we provided in safety training demonstrate our commitment to our workforce.

Similarly, our efforts to develop and train our employees is reflected in the 500,000+ hours of training provided throughout the year to both direct employees and contractors.

Moreover, we continue searching to develop our portfolio of sustainable products. We understand the unlimited ability of steel to meet the demands of markets and consumers for products that are efficient, durable and recyclable. So during the year we were able to innovate both in long products, with solutions such as our Grade 56 rebar, and in flat products, with the development of steel grades for the energy and automotive industry.

In addition, despite the difficulties we faced last year, we were able to recycle 64,000 tons of steel. Also, in an effort to be more efficient in the use of resources, we continue with our model of waste management.

We regard our environmental impacts by considering the efficient use of energy (outcome 6) and the resources we have, particularly soil, air and water (outcome 5). In this regard, we have managed to reduce the consumption of water tributaries by 17%, having managed to reuse nearly nine million cubic meters of water for our various processes. When it comes to our energy efficiency agenda, last year we carried out maintenance activities and improvements throughout our operations in order to be more efficient in our energy use, reducing our CO2 emissions by 10% compared to last year.

Moreover, we know that if we have the best technicians, engineers and professionals to innovate in production processes and provide sustainability to our industry, we should be able to inspire future generations. To this end, in 2015 we launched “ArcelorMittal Community Fellows”, a programme which is supporting 95 first-generation young engineering students on their way to become agents of change in their communities.

We are aware that there is still a long way to go, but we are certain that our 10 sustainable development outcomes are clear, measurable and directly related to the impacts that our industry generates. We will achieve great results, which we will present with the transparency that is characteristic of ArcelorMittal.

VÍCTOR CAIRO,
CEO
ArcelorMittal México

Leading the way

Developing present and future talent

We are committed to developing talent across our organisation. But it’s just as important to prepare the future workforce for the skills and qualities they will need to succeed in a technologically-advanced industry like steel.

That’s why we have developed a strategic programme to support science, technology, engineering and maths – or STEM – learning as part of our sustainable development outcome 9: building a pipeline of talented engineers and scientists for tomorrow.  

In a region like Lazaro Cardenas, Michoacán, where we are the largest company and one of the few businesses engaged in corporate social responsibility, the actions we are developing will deliver significant impact.

On November 18, 2015 ArcelorMittal Mexico presented the first generation of ArcelorMittal’s Fellows in the Community, a new scholarship programme for engineers developed in collaboration with the Bécalos programme (Televisa Foundation) and the Technological Institute of Lazaro Cardenas (ITLAC in Spanish). The programme – the first of its kind for the region – forms part of the company’s broader educational support platform to help develop talent in the region.

In 2015, 95 engineering students benefitted from the programme. The scholarship supports students throughout the four years of their college education on the condition that they continue to show progress in their studies and maintain a minimum average score using the national grading system. This initiative seeks to empower young people to become agents for positive change within their communities.

This programme is a strong example of what can be achieved through strategic partnership. Its success reflects the valuable contribution made by the Bécalos programme and the Technological Institute of Lazaro Cardenas (ITLAC) to the programme and local community.

The Fellows programme complements one of the most important events the company conducts each year: its global Learning Week. This is an important fixture in the company calendar and enables employees and other stakeholders – including employee family members, contractors, and members of communities where we operate – to improve their knowledge and awareness on a variety of topics, such as:

  • Neurolinguistics coaching
  • Technical issues
  • Personal growth
  • Environment
  • Planning and management
  • Professional growth

The Learning Week figures testify ArcelorMittal Mexico's commitment to developing the skills of our stakeholders: 6,482 participants spent 4,968 hours learning, thanks to more than 115 dedicated sessions.

Cynthia Arredondo, head of human resources and general services at ArcelorMittal Mexico, said: "Initiatives such as our STEM programme and the annual Learning Week demonstrate the strength, enthusiasm and commitment of our employees to continue learning and developing – personally and professionally. Our work is also testament to our belief in the importance of nurturing new talent within the communities in which we operate".