Since its inception, ArcelorMittal has rapidly grown through a successful consolidation strategy with a number of significant acquisitions
ArcelorMittal is the successor to Mittal Steel, a business originally set up in 1976 by
Mr Lakshmi N Mittal, chief executive officer and chairman of the board of directors. ArcelorMittal was created through the merger of Arcelor and Mittal Steel in 2006.
Mittal Steel’s rapid growth since 1989 has been the result of combining a successful consolidation strategy with a number of significant acquisitions.
Since setting up operations in Trinidad and Tobago in 1989, some of its major acquisitions are Siderurgica del Balsas (Mexico) in 1992, Sidbec (Canada) in 1994, Karmet (Kazakhstan) and Hamburger Stahlwerke (Germany) in 1995, Thyssen Duisburg (Germany) in 1997, Inland Steel (US) in 1998, Unimetal (France) in 1999, Sidex (Romania) and Annaba (Algeria) in 2001, Nova Hut (Czech Republic) in 2003, BH Steel (Bosnia), Balkan Steel (Macedonia), PHS (Poland) and Iscor (South Africa) in 2004, ISG (US), Kryvorizhstal (Ukraine), as well as a significant interest in Hunan Valin Steel (China) in 2005, and three Stelco Inc. subsidiaries (Canada) in 2006.
Arcelor was created in February 2002 through the merger of Arbed (Luxembourg) founded in 1911, Aceralia (Spain) and Usinor (France). Arcelor also had major steel production facilities in Belgium, Germany, Italy, Brazil and Argentina.
Arcelor acquired a controlling interest in Companhia Siderurgica Tubarao (now a part of ArcelorMittal Brasil) in 2004, Huta Warszawa (Poland) in 2005, a controlling interest in Sonasid (Morocco), as well as Dofasco (Canada) in 2006.
At the time of the merger with Mittal Steel, Arcelor was the second-largest steel producer in the world.
In 2007 the newly merged ArcelorMittal continued to pursue an expansive growth strategy, with 35 transactions announced worldwide.
At the beginning of 2008 ArcelorMittal continued to make investments, with significant transactions announced in Australia, Brazil, Canada, Costa Rica, France, Russia, South Africa, Sweden, Turkey, United Arab Emirates, the US and Venezuela, the majority of which were completed. But in light of the deteriorating economic situation during 2008, ArcelorMittal suspended most investment activity by the end of the year.
Post-crisis, ArcelorMittal cautiously restarted certain projects to capture growth in key emerging markets and mining. Capital expenditure on mining doubled in 2011 to almost US$1.3bn, as the group embarked on a major development programme aimed at expanding existing mines and developing new ones.
ArcelorMittal has put considerable emphasis on growing its mining business. The company has re-started a number of steel development projects, including the optimisation of the galvanising operations in Dofasco, the first phase of the Monlevade expansion in Brazil, as well as further investment in Juiz de Fora to raise melt shop and rebar capacity. In Argentina, a construction of a new rolling mill was announced.
ArcelorMittal, together with its partner Nippon Steel and Sumitomo Metal, acquired ThyssenKrupp's Calvert facility in the US. This was a strategic acquisition for ArcelorMittal, demonstrating the company’s industry leadership and continued ability to capture value-enhancing opportunities.
In 2016, the company announced Action 2020, a five-year strategic plan targeting US$3bn of structural Ebitda improvement, and annualised free cash flow in excess of US$2bn, by 2020. August 2016 marked the ten-year anniversary of the official merger between Arcelor and Mittal Steel, which paved the way for ArcelorMittal’s ten years of industry leadership.