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ArcelorMittal announces that it has today completed an investment agreement (the ‘Investment Agreement’) with Invitalia, an Italian state-owned company, forming a public-private partnership between the parties.

2021 04 14 230814Invitalia has injected €400 million new equity into AM InvestCo Italy, ArcelorMittal’s subsidiary which signed the lease and purchase agreement for the Ilva business, providing Invitalia with a 38% shareholding and equal voting rights with joint control over the company. Going forward the joint company AM InvestCo Italy is being re-named Acciaierie d’Italia Holding, and its main operating subsidiary ArcelorMittal Italia will be renamed Acciaierie d’Italia.

The Investment Agreement stipulates a second equity injection by Invitalia, of up to €680 million, to fund the completion of the purchase of Ilva’s business by Acciaierie d’Italia, which is expected by May 2022 subject to certain conditions precedent*. At this point, Invitalia’s shareholding in Acciaierie d’Italia would increase to 60%, with ArcelorMittal to invest up to €70 million to retain a 40% shareholding and joint control over the company.

Going forward, Acciaierie d’Italia Holding will operate independently, and as such will have its own funding plans without reliance on ArcelorMittal. As a result, ArcelorMittal will deconsolidate the assets and liabilities (including the remaining lease and purchase liability) of Acciaierie d’Italia Holding (formerly AM InvestCo Italy) from its consolidated statement of financial position and will account its interest in the company under the equity method.

*The conditions precedent include: the amendment of the existing environmental plan to account for changes in the new industrial plan; the lifting of all criminal seizures on the Taranto plant; and the absence of restrictive measures – in the context of criminal proceedings where Ilva is a defendant – being imposed against Acciaierie d’Italia Holding or its subsidiaries. In case conditions precedent are not met, then the Acciaierie d’Italia Holding would not be required to complete the purchase of Ilva’s assets and its capital invested would be returned.

About ArcelorMittal

ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and primary steelmaking facilities in 17 countries. In 2020, ArcelorMittal had revenues of $53.3 billion and crude steel production of 71.5 million metric tonnes, while iron ore production reached 58.0 million metric tonnes. Our goal is to help build a better world with smarter steels. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for electric vehicles and renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change. This is what we believe it takes to be the steel company of the future. ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS). For more information about ArcelorMittal please visit: http://corporate.arcelormittal.com/

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ArcelorMittal North America Holdings LLC, a wholly-owned subsidiary of ArcelorMittal S.A. (‘ArcelorMittal’ or ‘the Company’), has just announces an agreement to sell 40 million Cleveland-Cliffs common shares through a fully underwritten public market offering. The transaction is a part of a combined primary and secondary public offering of Cleveland-Cliffs’ shares.

This divestment crystalizes additional proceeds from the transaction with Cleveland-Cliffs announced on 28 September 2020 and completed on 9 December 2020. The proceeds from the sale of Cleveland-Cliffs common shares will be used for a new share buyback programme of ArcelorMittal common shares. The details and conditions of the buyback will be announced following the expiry of the Company’s current closed period on 15 February. 

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Following the sale of 40 million of Cleveland-Cliffs common shares ArcelorMittal North America Holdings LLC will continue to hold approximately 38 million common shares in addition to shares of non-voting preferred stock redeemable at Cleveland-Cliffs’ option for an equivalent value of approximately 58 million common shares.

A registration statement relating to the common shares being sold in the offering has been filed with the Securities and Exchange Commission (the “SEC”) and is effective. The offering will be made only by means of a prospectus supplement and an accompanying prospectus. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to the offering may be obtained for free by visiting the SEC's website at www.sec.gov. Alternatively, copies may be obtained by contacting BofA Securities, NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte NC 28255-0001, Attention: Prospectus Department or by emailing This email address is being protected from spambots. You need JavaScript enabled to view it..

About ArcelorMittal

ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and primary steelmaking facilities in 18 countries. In 2019, ArcelorMittal had revenues of $70.6 billion and crude steel production of 89.8 million metric tonnes, while iron ore production reached 57.1 million metric tonnes. Our goal is to help build a better world with smarter steels. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for electric vehicles and renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change. This is what we believe it takes to be the steel company of the future. ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS). For more information about ArcelorMittal please visit: http://corporate.arcelormittal.com/

http://corporate.arcelormittal.com/
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ArcelorMittal Europe has just announced details of the CO2 technology strategy that will enable it to offer its first green steel solutions to customers this year (30,000 tonnes), scale up this offering in coming years (to reach 120,000 tonnes in 2021 and 600,000 tonnes by 2022), deliver its 30% CO2 emissions target by 2030, and achieve net zero by 2050.

The strategy is centred around two main technology routes, as introduced in the first ArcelorMittal Europe climate action report published earlier this year:

  • The use of hydrogen in DRI-EAF and, also, the blast furnace
  • The expansion of its Smart Carbon route, also utilising hydrogen

HYDROGEN

arc logoHydrogen plays a central role in the company’s decarbonisation strategy.  ArcelorMittal Europe is developing a series of industrial-scale hydrogen projects for use in blast furnace-based steelmaking that will start to deliver substantial CO2 emissions savings even within the next five years, as well as progressing a project to test the ability of hydrogen to reduce iron ore and form DRI on an industrial scale.  

Ultimately to reach zero, this hydrogen will need to be ‘green’ (produced via electrolysis which is powered by renewable electricity). ArcelorMittal is therefore developing new facilities to produce green hydrogen using electrolysers.  Teams at ArcelorMittal Bremen in Germany are working on the first large-scale deployment of this technology which can then be deployed in both the blast furnace and the DRI-EAF route.  Previously, this emerging technology has only been tested at small pilot plants in Europe.

1. Hydrogen and the blast furnace 

  • ArcelorMittal Bremen

By installing an electrolyser, hydrogen can be produced and injected in large volumes into the blast furnace tuyeres. The project will reduce the volumes of coal needed in the iron ore reduction process, thereby cutting CO2 emissions.

  • IGAR in Dunkirk

At ArcelorMittal Dunkirk, the company is developing a hybrid blast furnace process, which involves using DRI gas injection technology in the blast furnace shaft as well as using gas injection in the blast furnace tuyeres, using plasma technology to create a reducing gas.  This is the first large-scale implementation of what is essentially a hybrid BF/DRI technology.  In due course it will enable green hydrogen to be injected into the blast furnace as it becomes available.   

  • Blast furnace injection across Flat Products sites

ArcelorMittal Europe is also implementing projects in almost all its Flat Products sites to use gases from different sources for blast furnace injection. Injecting hydrogen-rich coke oven gas is an efficient, cost effective method that allows steelmakers to reduce CO2 emissions now. ArcelorMittal Asturias has the most advanced coke oven gas project, with injection of grey hydrogen (hydrogen that has been recovered from gases including natural gas and coke oven gas) due to start in early 2021.

2. Hydrogen and DRI-EAF

  • Testing hydrogen to reduce iron ore and form DRI, at ArcelorMittal Hamburg

ArcelorMittal Europe owns Europe’s only DRI-EAF facility in Hamburg, where a project is planned to test the ability of hydrogen to reduce iron ore and form DRI on an industrial scale, as well as testing carbon-free DRI in the EAF steelmaking process.

  • Large-scale DRI plant being studied for Dunkirk

At ArcelorMittal Dunkirk a study has been launched to build a large-scale DRI plant, combined with an electric arc furnace. Initially, the DRI installation would use natural gas but ArcelorMittal’s unique experience in DRI production, together with the results of the DRI-hydrogen project in Hamburg mean the DRI installation will be fully ‘hydrogen-ready’.

SMART CARBON WITH HYDROGEN

  • Second Carbalyst plant planned, in Fos-sur-Mer; further CO2 cuts with large electrolyser for hydrogen injection

ArcelorMittal is also planning to expand its use of the Smart Carbon technology route. At ArcelorMittal Fos-sur-Mer, France, a study is underway in collaboration with partner Lanzatech, to build a second Carbalyst plant in addition to the one under construction at ArcelorMittal Ghent in Belgium. This involves carbon capture from the blast furnace waste gas, and biologically converting it into ethanol for use as a biofuel or recycled carbon feedstock for the chemical industry. In parallel with the company’s electrolyser project in Bremen, the Carbalyst plant in Fos-sur-Mer will boost CO2 savings through hydrogen injection, supplied by a large-scale electrolyser that will produce the hydrogen locally from renewable electricity.

First verified green steel for customers

The first impact of these decarbonisation efforts means ArcelorMittal Europe will be offering customers green steel products this year, when the first 30,000 tonnes will be ready.

A system that quantifies the CO2 emissions savings made thanks to the decarbonisation projects being rolled out by ArcelorMittal Europe has been developed. Customers will be able to buy green steel, based on verified emissions compared with a 2018 baseline. 

Innovation Fund submissions

To fund the capital investment needed for the projects announced today, ArcelorMittal Europe is preparing funding applications to the EU’s Innovation Fund which is designed to support low-carbon investments in the European Union. 

Aditya Mittal, President and CEO ArcelorMittal Europe, said:  

"Today we are providing an important update on our progress in achieving our target of reducing CO2 emissions by 30% by 2030 and carbon neutrality by 2050, including the vital role that hydrogen has in our strategy.  Our talented teams across ArcelorMittal Europe are working hard to ensure our CO2 emissions reduction projects deliver results as fast as possible, on an industrial scale.  We are focussed on being ready for the hydrogen economy and the exciting opportunities this presents for us as European steelmakers. 

“In parallel we continue to roll out our Smart Carbon technology which we are convinced also offers huge potential given the world will need so-called BECCS technologies (bio-energy, carbon capture and storage) to reach net zero by 2050. 

“Our plans to offer greener and more circular steel will support our customers in their circular economy objectives. We are pleased to be able to offer our first green tonnes this year and look forward to being able to provide customers with larger volumes of this steel as our decarbonisation projects are ramped up and rolled out across Europe.

“We are in the process of applying for funding for various projects from the ETS Innovation Fund which we hope will be successful, giving us the vital access to finance that we need for these important projects. The success of these projects will also be secured through partnerships, and we would like to thank our partners for their hard work and willingness to co-develop the new technologies we need to make carbon-neutral steel.”

ArcelorMittal Europe climate action report

In June 2020, ArcelorMittal Europe published its first climate action report which outlined the company’s strategy for reducing CO2 emissions by 30% by 2030 and reaching carbon neutrality by 2050.

In the report the company identified two breakthrough carbon-neutral technology routes, Smart Carbon and innovative DRI based on hydrogen, that will help the company reach its CO2 reduction targets.

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Firstly, we would like to recognise the resilience and flexibility of our global workforce, whose health and well-being is our first priority. Where possible, employees are working remotely from home. Where assets continue to operate, we are following the recommendations from government as well as the World Health Organisation (‘WHO’). We appreciate this brings new challenges for everyone and are working together as a community to support each other through these unprecedented times.  

The global escalation of COVID-19 and the measures introduced by governments worldwide to contain the virus are negatively impacting economic activity and industrial supply chains in many parts of the world. Consequently, we are either seeing or expect to see a significant decline in industrial activity in many if not all of the geographic markets in which we operate, which is impacting our business. 

arcelormittal logoIn response we are reducing production and temporary idling steelmaking and finishing assets, adapted on a country by country basis in alignment with regional demand as well as government requirements. This will not necessarily happen uniformly at assets across the globe given the escalation of the virus is at different points in different regions. While Europe is currently the epicenter, according to official WHO data cases in the NAFTA region have now exceeded those in China, with cases also increasing in Africa, India, South America and the CIS. Where demand for our products continues, for example for food packaging, we will endeavour to maintain reduced operations to ensure we can meet customer’s requirements.

In order to mitigate the impact of the lower level of production we are implementing significant measures to preserve cash and reduce costs in-line with reduced production levels. This includes accessing measures introduced by governments to support companies throughout these unprecedented times. We are thankful to all governments for their swift introduction of such measures which will be critical to many industries as we navigate this period.  

The current market volatility and uncertainty is tough for every country, every individual and every company. We are however buoyed by the fact our company has in recent years prioritised the strengthening of its balance sheet to provide a strong financial foundation in all market conditions. Net debt is at a record low, we have a very manageable debt maturity profile having used available cash to prepay debt in recent years and also benefit from a significant liquidity position. We intend to provide updated guidance on our 2020 cash requirements, including capital expenditure, when we announce our first quarter 2020 results on 7 May 2020. In order to ensure the safety and wellbeing of our employees, shareholders and stakeholders, we have however decided to postpone the AGM planned for 5 May 2020. A new date will be communicated in due course.  

Like many in the private sector, we are attempting to harness our skills and resources in a useful and collaborative way to help address the challenges presented by COVID-19. Specifically, we have focussed our actions on collaborating to address the severe lack of the required safety and medical equipment, including face masks and ventilators. Our businesses across the world have now collectively donated to various initiatives. We have also been utilising our global network to help facilitate the transfer of equipment to and from regions most impacted. For example, in February we actively helped source masks for China. Now that China appears to have passed its peak, we are working with our associates there to help bring medical equipment to the countries now facing an escalation and particularly those, such as India and Liberia, that will struggle to source adequate supplies.

Furthermore, we have also been able to contribute the 3D printing expertise of our R&D team to a global effort focussed on developing a 3D printed ventilator prototype. This prototype will be tested imminently in hospitals and, if successful, will massively increase the ability to rapidly produce ventilators. We are now focussed on the prototype for a more advanced ventilator which also has the ability, in addition to providing lungs with oxygen, to feeding medicine incorporating AI algorithms.  

Finally, where excess capacity exists, we are offering space to medical facilities to host additional wards. We are proud of the initiatives our employees are taking to provide social and humanitarian support during this time.

About ArcelorMittal

ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and primary steelmaking facilities in 18 countries. In 2019, ArcelorMittal had revenues of $70.6 billion and crude steel production of 89.8 million metric tonnes, while iron ore production reached 57.1 million metric tonnes. Our goal is to help build a better world with smarter steels. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for electric vehicles and renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change. This is what we believe it takes to be the steel company of the future. ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS). For more information about ArcelorMittal please visit: http://corporate.arcelormittal.com/

http://corporate.arcelormittal.com/
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ArcelorMittal today calls for member states and MEPs to support the introduction of a carbon border adjustment (CBA), as part of the European Commission’s €1 trillion Green Deal, aimed at making the bloc carbon neutral by 2050.

ArcelorMittal today calls for member states and MEPs to support the introduction of a carbon border adjustment (CBA), as part of the European Commission’s €1 trillion Green Deal, aimed at making the bloc carbon neutral by 2050.

In a manifesto published today, ‘Creating a low carbon world, the case for a Carbon Border Adjustment’, ArcelorMittal sets out its firm belief that a CBA should be one of the first Green Deal measures adopted by the new European Commission, as it will help to create the market conditions and protections needed for companies to make investments and transition to carbon neutrality without disruption.

arcelormittal logoCurrently within the EU, energy-intensive industries including steel producers, pay a carbon cost under the EU Emissions Trading System (ETS). But this does not apply to steel producers from markets outside the EU who can sell steel with comparable or often significantly higher, carbon emissions, at a lower price. The result is that steel production is moving to non-EU countries where carbon emissions legislation is often less strict, undermining efforts to combat climate change. 

However, with a CBA, when steel comes into the EU, the carbon costs that European producers pay would be added to the imported steel, equalising the cost of carbon for every producer to create a fair market and, crucially, encouraging investment in lower-emissions steel production.

Geert Van Poelvoorde, CEO ArcelorMittal Europe – Flat Products says: “The EU’s commitment to reduce its carbon emissions to net-zero should be applauded and we hope that decision makers across Europe will back the proposals as they really could hold the key to unlocking solutions that could put a stop to carbon emissions. The climate challenge is unprecedented, and bold action is needed.”

ArcelorMittal believes that a CBA can be applied in various ways, as long as it neutralizes the disparities in carbon costs between domestic products and imports, and incentivizes the transition to low carbon steel production. In the manifesto, ArcelorMittal highlights how the best-designed carbon border adjustment could work effectively:

Producers exporting to the EU should be charged the same marginal carbon emissions cost as European producers pay under the ETS. This should serve as a catalyst to other countries to introduce their own carbon schemes and invest in technologies to decarbonise.

The CBA should initially be applied to primary goods, rather than end products like household appliances and everyday tools. This is the most practical way to introduce the CBA.

To be effective, free allocation of ETS allowances, which are gradually being phased out by the European Commission, should be maintained in the first stage of the CBA, alongside compensation for high energy costs as an indirect result of the ETS. This is crucial to enabling European steel to stay competitive and ensure a smooth transition without disruption.

He says: “There are of course challenges that will need to be overcome. For example, some have argued that there is the risk of contravening international trade rules. However, the establishment of a border adjustment is compatible with international trade rules, allowing members to adopt measures necessary for the protection of the environment or relating to the conservation of natural resources providing that such measures do not constitute arbitrary discrimination between countries where the same conditions prevail. But this will only work if the policies are well-designed and drafted in the right way.” 

He also says: “We know we need to invest more to decarbonise our industry and we truly believe we can be a world leader in low carbon steel. But in order to do so, we need to have a CBA to create a landscape where others also contribute equally to a carbon-neutral world. The time to do this is now, with the proceeds allowing further investment in large-scale green technologies that lead to a new era of low carbon emissions.” 

For more information, to read the manifesto and view our short animation on the CBA, see here:

https://corporate.arcelormittal.com/sustainability/climate-action-in-europe

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ArcelorMittal have just announced that it has commissioned technology provider Midrex Technologies to design a demonstration plant at its Hamburg site to produce steel with hydrogen. Both companies have now signed a Framework Collaboration Agreement (FCA) to cooperate on several projects, ranging from research and development to the implementation of new technologies. The FCA will be governed by a number of Project Development Agreements, incorporating the expertise of Midrex and ArcelorMittal. The first Project Development Agreement is to demonstrate in Hamburg the large-scale production and use of Direct Reduced Iron (DRI) made with 100% hydrogen as the reductant. 

In the coming years, the demonstration plant will produce about 100,000 tons of direct reduced iron per year - initially with grey hydrogen sourced from natural gas.  Conversion to green hydrogen from renewable energy sources will take place once available in sufficient quantities and at an economical cost. Energy for hydrogen production could come from wind farms off the coast of Northern Germany. The plant will be the world’s first direct reduction plant on an industrial scale, powered by hydrogen.

At the signing ceremony in Hamburg (from left to right): Vincent Chevrier, Todd Astoria and KC Woody from Midrex with Dominique Vacher, Dr Uwe Braun and Matthias Schad from ArcelorMittal.At the signing ceremony in Hamburg (from left to right): Vincent Chevrier, Todd Astoria and KC Woody from Midrex with Dominique Vacher, Dr Uwe Braun and Matthias Schad from ArcelorMittal.

"We are working with a world class provider, Midrex Technologies, to learn how you can produce virgin iron for steelmaking at a large scale by only using hydrogen. This project combined with our ongoing projects on the use of non-fossil carbon and on carbon capture and use is key to become carbon neutral in Europe in 2050. Large scale demonstrations are critical to show our ambition. However it will depend on the political conditions, how fast transformation will take place", comments Carl de Maré, Vice President at ArcelorMittal and responsible for technology strategy.  

ArcelorMittal Hamburg already produces steel using DRI technology. During the process, iron oxide pellets are reduced to metallic iron, the raw material for high quality steel, by extracting oxygen using natural gas. "Our site is the most energy-efficient production plant at ArcelorMittal", says Dr Uwe Braun, CEO at ArcelorMittal Hamburg, adding that the existing Midrex plant in Hamburg is also the plant with the lowest CO2-emissions for high quality steel production in Europe. "With the new, hydrogen-based DRI plant we are now planning, we will raise steel production to a completely new level, as part of our Europe-wide ambition to be carbon neutral by 2050", Dr Braun concludes.

"This commercial scale project will show the path for hydrogen based iron and steel making", commented Stephen C. Montague, President & CEO of Midrex Technologies Inc. "We are excited to work with ArcelorMittal as pioneers for using renewable energy in our industry." 

About ArcelorMittal 

With a production volume of about 8 million tons of crude steel, ArcelorMittal is one of the largest steel producers in Germany. The automotive, construction and packaging industries are among our customers as well as the household goods sector. The company operates four major production sites in Germany. These include two integrated flat steel mills in Bremen and Eisenhüttenstadt as well as two long steel mills in Hamburg and Duisburg. ArcelorMittal also has a strong distribution network in Germany and has seven tailoring service centers and 16 distribution centers. ArcelorMittal employs more than 9,000 people in Germany. https://germany.arcelormittal.com/

ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and an industrial footprint in 18 countries. Guided by a philosophy to produce safe, sustainable steel, we are the leading supplier of quality steel in the major global steel markets including automotive, construction, household appliances and packaging, with world-class research and development and outstanding distribution networks. Through our core values of sustainability, quality and leadership, we operate responsibly with respect to the health, safety and well-being of our employees, contractors and the communities in which we operate. For us, steel is the fabric of life, as it is at the heart of the modern world from railways to cars and washing machines. We are actively researching and producing steel-based technologies and solutions that make many of the products and components people use in their everyday lives more energy efficient. We are one of the world’s five largest producers of iron ore and metallurgical coal and our mining business is an essential part of our growth strategy. With a geographically diversified portfolio of iron ore and coal assets, we are strategically positioned to serve our network of steel plants and the external global market. While our steel operations are important customers, our supply to the external market is increasing as we grow. 

In 2018, ArcelorMittal had revenues of $76 billion and crude steel production of 92.5 million metric tonnes, while own iron ore production reached 58.5 million metric tonnes. ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).  https://corporate.arcelormittal.com/

Midrex Technologies, Inc.

Midrex is the world leader for direct reduction ironmaking technology and aftermarket solutions for the steel industry. As the technology provider of the MIDREX® Process for 50+ years, Midrex designs Direct Reduced Iron (DRI) plants, providing engineering, proprietary equipment, and project development services. The MIDREX® Process is unsurpassed in the industry in terms of production and process flexibility to meet the constantly evolving nature of steelmakers and ore-based metallics providers.  Midrex Technologies, Inc. is located in Charlotte, North Carolina, USA. It operates a center of excellence for ferrous and non-ferrous reduction technology development in nearby Pineville, NC. For more information, please visit www.midrex.com

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Regrettable decision necessary due to combination of weakening demand, rising imports coupled with insufficient EU trade protection, high energy costs and rising carbon costs 

ArcelorMittal has just announced its intention to temporarily idle production at its steelmaking facilities in Kraków, Poland and reduce production in Asturias, Spain. In addition, the planned increase of shipments at ArcelorMittal Italia to a six million tonne annual run-rate will be slowed down following a decision to optimise cost and quality over volume in this environment. 

arcelormittal logoTogether, these actions will result in a temporary annualised production reduction of around three million tonnes.

Commenting, Geert van Poelvoorde, CEO, ArcelorMittal Europe – Flat Products, said:

“The difficult decision to temporarily reduce our European primary flat steel production has not been taken lightly. We understand the impact this has on employees and the local communities and will be working to ensure social measures are in place to support them during this period.

“These actions reflect the weak demand environment in Europe today, a situation further compounded by increased imports despite the safeguard measures introduced by the European Commission. High energy costs and increasing carbon costs are adding to the tough environment.

“We are engaging with stakeholders to request that the safeguards are strengthened to prevent a further increase in imports as a result of continued global overcapacity and a weakening economy in neighbouring countries including Turkey. We will also continue to make our case for a green border adjustment to be introduced to ensure that imports into Europe face the same carbon costs as producers in Europe. The steel industry in Europe can have a strong future but there must be a level playing field to ensure that an unfair advantage is not given to competitors outside the region.”

In Kraków, the primary production (blast furnace and steel plant) will be temporarily idled. The Polish steel market has been particularly hard hit, due to a near fourfold year-on-year increase in Russian steel imports in 2018, and among the highest electricity prices in Europe.

In Asturias, primary production will be reduced. Electricity costs are also very high in Spain, and the southern European market has been hit by an unprecedented rise in imports from outside the EU.

Despite the introduction of the permanent EU safeguard tariffs in February 2019 there has been a continued and consistent rise in flat steel imports into Europe. Flat steel imports into Europe are currently at record highs, with imports of hot rolled coil up 37 per cent this year from 2017, on an annualised basis. In addition, the price of carbon has risen by approximately 230 per cent since the start of 2018, placing further competitive pressure on European steelmakers. In the EU Emissions Trading System (ETS), only steel produced in Europe is subject to a carbon levy. ArcelorMittal has previously called for the introduction of a green border adjustment whereby steel imported into Europe has the same standards applied on CO2 as European produced steel under the ETS.

About ArcelorMittal

ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and an industrial footprint in 19 countries. Guided by a philosophy to produce safe, sustainable steel, we are the leading supplier of quality steel in the major global steel markets including automotive, construction, household appliances and packaging, with world-class research and development and outstanding distribution networks.

Through our core values of sustainability, quality and leadership, we operate responsibly with respect to the health, safety and wellbeing of our employees, contractors and the communities in which we operate.

For us, steel is the fabric of life, as it is at the heart of the modern world from railways to cars and washing machines. We are actively researching and producing steel-based technologies and solutions that make many of the products and components people use in their everyday lives more energy efficient.

We are one of the world’s five largest producers of iron ore and metallurgical coal. With a geographically diversified portfolio of iron ore and coal assets, we are strategically positioned to serve our network of steel plants and the external global market. While our steel operations are important customers, our supply to the external market is increasing as we grow.

In 2018, ArcelorMittal had revenues of $76.0 billion and crude steel production of 92.5 million metric tonnes, while own iron ore production reached 58.5 million metric tonnes.

ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).

For more information about ArcelorMittal please visit: http://corporate.arcelormittal.com/

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To permanently reduce CO2 emissions, ArcelorMittal has developed a low-emissions technology strategy, which targets not only the use of alternative feedstocks and the conversion of CO2 emissions, but also the direct avoidance of carbon (Carbon Direct Avoidance, or CDA).

This year, the Group intends to launch a new project in the ArcelorMittal plant in Hamburg to use hydrogen on an industrial scale for the direct reduction of iron ore in the steel production process for the first time. A pilot plant is to be built in the coming years.

2019 04 01 212823

Already today, the Hamburg plant has one of the most efficient production processes of the ArcelorMittal Group due to the use of natural gas in a direct reduction plant (DRI). The aim of the new hydrogen-based process is to be able to produce steel with the lowest CO2 emissions. The project costs amount to around 65 million euros. In addition, a cooperation agreement with the University of Freiberg is planned to test the procedure in the coming years at the Hamburg plant premises. The hydrogen-based reduction of iron ore will initially take place on a demonstration scale with an annual production of 100,000 tonnes.

"Our Hamburg site offers optimum conditions for this innovative project: an electric arc furnace with DRI system and iron ore pellets stockyard as well as decades of know-how in this area. The use of hydrogen as a reducing agent shall now be tested in a new shaft furnace," comments Frank Schulz, CEO of ArcelorMittal Germany.

In the process, the separation of H2 with a purity of more than 95 percent from the top gas of the existing plant should be achieved by so-called pressure swing adsorption. The process is first tested with grey hydrogen (generated at gas separation) to allow for economical operation. In the future, the plant should also be able to run on green hydrogen (generated from renewable sources) when it is available in sufficient quantities.

With the Hamburg hydrogen project, ArcelorMittal is advancing pioneering technology for direct CO2 avoidance as one of several potential pathways for low-emissions steelmaking. The Group is already investing more than 250 million euros in various carbon emissions reduction technologies, for example in Ghent where waste carbon gases will be used for the production of alternative fuels or in chemical products. Likewise, methods are tested in which biocoal from waste wood is used instead of coking coal as a reducing agent in the blast furnace.

ArcelorMittal is committed to climate protection. With its multi-technology approach, the Group wants to make an active contribution to achieving the ambitious climate and energy policy goals of the Paris agreement and to identify which technologies are technically and economically feasible to reduce, capture or avoid CO2 emissions.

About ArcelorMittal 
 Germany
With a production volume of 8 million tonnes crude steel, ArcelorMittal is among the largest steel producers in Germany. Its customers come from the automotive and construction industry, as well as from the packaging and household appliances sector. The group runs four large production sites in the country. These are two fully integrated flat carbon sites in Bremen and Eisenhüttenstadt as well as two long carbon sites in Hamburg and Duisburg. Moreover the group has seven steel service centers and 16 distribution centers in the federal republic. ArcelorMittal employs more than 9,000 people in Germany. 
http://germany.arcelormittal.com
 Worldwide
ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and an industrial footprint in 18 countries. Guided by a philosophy to produce safe, sustainable steel, we are the leading supplier of quality steel in the major global steel markets including automotive, construction, household appliances and packaging, with world-class research and development and outstanding distribution networks. Through our core values of sustainability, quality and leadership, we operate responsibly with respect to the health, safety and wellbeing of our employees, contractors and the communities in which we operate. 
For us, steel is the fabric of life, as it is at the heart of the modern world from railways to cars and washing machines. We are actively researching and producing steel-based technologies and solutions that make many of the products and components people use in their everyday lives more energy efficient. We are one of the world’s five largest producers of iron ore and metallurgical coal and our mining business is an essential part of our growth strategy. With a geographically diversified portfolio of iron ore and coal assets, we are strategically positioned to serve our network of steel plants and the external global market. While our steel operations are important customers, our supply to the external market is increasing as we grow. 
 In 2018, ArcelorMittal had revenues of $76 billion and crude steel production of 92.5 million metric tonnes, while own iron ore production reached 58.5 million metric tonnes. ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS). 
http://corporate.arcelormittal.com/
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ArcelorMittal has just announced that it is one of 230 companies selected for the 2019 Bloomberg Gender-Equality Index (GEI), which distinguishes companies committed to transparency in gender reporting and advancing women’s equality in the workplace. 

The index, which has doubled in size since 2018, having introduced thirteen new markets, includes companies from 10 sectors headquartered across 36 countries and regions. Collectively, these organisations employ 15 million people, 7 million of whom are women. This year’s GEI indexed companies account for US $9 trillion worth of traded stock market shares. 

Bloomberg’s standardised gender reporting framework offers ArcelorMittal the opportunity to disclose information on how it promotes gender equality and to learn good practice from others on the index.

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The GEI also provides the company with a framework for improving its understanding of how it promotes gender sensitivity in the way it does business, helping it to close the ‘gender gap’ in the broadest sense. 

Bart Wille, executive vice president, head of human resources at ArcelorMittal said:

“ArcelorMittal has chosen to participate in the Gender-Equality Index because it gives us an opportunity to gain further insights to enhance an area we know we can strengthen further, that is achieving better female representation at all levels of the organisation. We want to publicly demonstrate our commitment to recruit, retain and develop the best talent – male or female – by building an inclusive culture and a strong and diverse talent pipeline. As a leading global industrial company, we operate in an extremely competitive landscape and we do not want to miss the opportunity to tap into half of the available global talent pool, or to cultivate the first-class ideas mixed gender teams can create.”

The GEI highlighted several elements of ArcelorMittal’s approach to gender equality as best in class results. These are: 

  • A third of the members of the company’s board of directors is female
  • ArcelorMittal subsidiaries around the world promote Science, Technology, Engineering and Maths (STEM) programmes which encourage young girls to pursue studies and a career in this area
  • Female staff engage in the company’s Women in Leadership programme and
  • The company is an active member of gender equality organisations, e.g. Women in Mining.

The GEI is also an important resource for investors who wish to benchmark ArcelorMittal’s performance on gender diversity against that of its peers. Such data increasingly influences investment decisions, so transparency on this and other key environmental, social and governance performance metrics is the cornerstone for good investor relations. 

“We applaud ArcelorMittal and the 229 firms tracked by the index for their action to measure gender equality through the Bloomberg GEI framework,” said Peter T. Grauer, Chairman of Bloomberg and Founding Chairman of the U.S. 30% club. ArcelorMittal’s GEI inclusion is a strong indicator to investors and industry peers alike that it is leading by example to advance ongoing efforts for a truly inclusive workforce.”

The Bloomberg gender reporting framework is voluntary reference index and has no associated costs. All public companies can submit data to Bloomberg. Those with a security listed on a U.S. exchange and a market capitalisation of US 1 billion or greater are eligible for index inclusion. For more information on the GEI visit:  https://www.womenatbloomberg.com/

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Thursday, 19 April 2018 09:30

Tubular Products Europe

ArcelorMittal Europe’s Tubular Products division is a pan-European producer, manufacturing tubes and pipes in four countries and delivering its products through proximity agencies located in eight countries across the continent as well other major international markets

Active in the energy, construction, engineering and automotive sectors, the company produces and markets virtually the full spectrum of tubular products, with an increasing share of value-added products developed in cooperation with its customers

Tubular Products offers the broadest product range, from seamless to spiral and longitudinal welded tubes, available in both small and large outside diameters, as well as a variety of processes and/or finishing, including ERW, HFI, precision, cold-drawn, HSAW and LSAW.

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A wide range of seamless pipes

ArcelorMittal Europe’s division Tubular Products offers seamless pipes with outside diameters ranging from

21.3mm - 508mm and wall thicknesses of up to 50mm. Access to high-quality steels allows the division to create pipe and tube solutions for the most challenging applications. Its mills in Romania and the Czech Republic have supplied many complex orders, including structural tubes for the Azerbaijan Olympic Stadium, piping systems for the UK Navy’s flagship aircraft carriers, and oil and gas projects across the world.

Flexible large-diameter welded facilities

Tubular Products’ highly flexible operations enable it to meet the demands of both large and small projects. The division has the capability to produce individual pipes, making it the ideal supplier for small projects with many components. A wide range of grades is available in strengths of up to X70. Additional services include end preparation for sockets, cut-to-length pipes and an in-house coating facility.

Extensive small welded offer

Small, welded cold-formed and hot-finished tubes are produced at Tubular Products’ mills in Eastern Europe in Karviná (Czech Republic), Krakow (Poland), and Iasi (Romania), and in France in Lexy, Rettel, Fresnoy and Vincey. These products are typically used in construction, and in the transportation of fluids and gases. The range is constantly developing to meet customer requirements for high value-added products. Over the past two years, Tubular Products Europe has made important investments to increase its production of galvanized and colour-coated tubes. These investments have enabled it to increase the variety of grades on offer and improve its logistics systems.

A leading manufacturer of automotive tubing

Due to their contribution to structural strength, reduced number of welds and light weight in relation to the optimised number of joints, steel tubes help to lower costs, increase safety and reduce overall mass - critical factors for car manufacturers. With five production sites in Europe specialising in automotive tubes, Tubular Products Europe is a leading manufacturer and marketer of tubes for the automotive industry with a wide range of welded and cold drawn mechanical steel tubes and tubular shapes, fabricated parts and precision components. The products are used for a wide range of high-value added applications, ranging from suspension systems to crash management components to axle housing assembly systems and instrument panels or seat structures.

Key investments and R&D

ArcelorMittal’s customers benefit from the group’s global R&D capabilities which include 1,400 full-time researchers, $278m dedicated to research in 2017 and a worldwide network of laboratories in Europe and Americas (12 major research centres)

In recent years, the group’s European mills have made major investments in state-of-the-art equipment for the production of pipes and tubes, including:

A new colour-coating line for cold-formed welded tubes at Iasi (Romania) in  2016

A new melamine colour-coating line at Karviná (Czech Republic) commissioned in autumn 2016

A new hot-dip galvanizing line at Krakow (Poland) in 2017

Other important areas of development are being conducted in the following locations:

Vitry (France), which is constantly developing parts for automotive applications. As weight is a key consideration for carmakers, Vitry has adapted and developed a low-carbon steel crash component that is lighter and more cost-effective than aluminium - just one example of how ArcelorMittal is using innovation and imagination to create additional value for the customer.

Roman (Romania) Replacement of the OCTG threading lines and coupling shop are underway. This will lead to a capability to produce premium connections for challenging applications in Oil and Gas exploration and production.

Fresnoy (France) has developed into an excellence centre for coated precision tubes such as highly appreciated and innovative MagnelisR tubes which ensure corrosion protection up to 10 times higher than conventional hot-dip galvanized tubes.

Innovating for different markets

Seamless

The Seamless Business Unit of Tubular Products Europe manufactures and markets steel pipes and tubes for the full spectrum of industrial, engineering, and energy segments.

Access to high-quality steels allows us to create solutions for the most challenging applications. Our mills in Romania and the Czech Republic have supplied many complex orders including pipes for the TengisChevroil Future Growth Project in Kazakhstan and other oil and gas contracts across the world

Applications:

Oil & Gas exploration Hydraulic cylinders Hydrocarbon transportation Structural applications Power generation

Engineering and mechanical applications

The following plants produce seamless pipes in a broad range of sizes and grades in carbon and alloy steel:

Ostrava, the Czech Republic’s largest steelmaker has integrated steel making and rolling facilities and has continuously invested in upgrading its facilities to produce a superior range of billets suitable for the production of pipes and tubes. The tube mill in Ostrava manufactures the full range of seamless products in the range 21.3mm to 273mmOD.

Roman is the one-stop shop for the entire range of tubular products required in the energy industry, producing seamless pipes for oil and gas projects around the world in a broad size range from 168.3mm to 508mm..

Large Diameter Welded

Our Large Diameter Welded mills offer a wide range of products which meet the highest standards in all major applications. By working closely with our customers, we ensure that our pipes and tubes meet all customer specific requirements.

Our highly flexible operations make us the ideal partner for both large and small pipeline projects in the energy sector. We also manufacture and supply pipes for piling and structural application

Applications:

Hydrocarbon transportation District heating systems Water distribution

Piling and structural applications

The following plants produce Large Diameter Welded pipes in a broad range of sizes and grades: Ostrava manufactures spiral-welded line pipes for the gas industry as well as pipes for District Heating and Structural applications.

Galati (Romania) produces LSAW pipes for the transportation of oil, gas, hydrocarbons and water.

Automotive Tubing

Tubular Products Europe is a leading manufacturer and marketer of welded and cold drawn mechanical steel tubing and tubular shapes, fabricated parts and precision components for the automotive industry.

Main applications: Suspension systems

Crash management components

Axle housing assembly systems

Welded precision tubes for manufacturing of seats, instrumental panel beams, filler pipes, engine cradles and reinforcement components

Complex hydroformed and other high-value added automotive applications

Five of Tubular Products’ plants provide tailor-made solutions to the group’s automotive customers. These include welded and cold-drawn welded tubes, and components based on global quality standards such as ISO TS 9001 and ISO TS 16949.

Hautmont (France) Located in northern France close to Maubeuge the ArcelorMittal Hautmont, Tubular Products factory (formerly Vallourec Précision Soudage) was built at the beginning of the 20th century. Its production of cold sized welded precision tubes ranges from 20mm - 130mm outside diameter and from 0.9mm

- 6mm wall thickness, with lighter and heavier wall-to-diameter ratios. In addition to standard low carbon steel, the factory produces high-strength low-alloy (HSLA), Dual Phase and (Trip) AHSS grades. Today, the plant is dedicated to meeting the demand for tubes from the automotive industry. Hautmont handles every stage of a tube’s production, including slitting, ERWwelding, NDT2  testing and annealing. Its tubes are used in numerous functions (front and rear suspension systems, body in  white, engine environment, driveline systems..) for customers all over Europe. Hautmont also has cutting facilities with chamfering, length- measuring, washing and automatic packaging.

Chevillon (France) The Chevillon plant (also formerly Vallourec Précision Soudageis located in northeast France in the Marne valley. The tubes manufactured range from 10 mm - 55 mm outside diameter and from 0.6 mm to 3 mm wall thickness. In addition to the standard low carbon steel grades, the factory also produces HSLA3 and Dual Phase steels. Production is aimed predominantly at the automotive market, which requires welded precision tube for the manufacture of seats, instrument panel beams, crash components, filler pipes, engine cradles, reinforcement components and shock absorbers. The core manufacturing process on site consists of slitting, welding, NDT testing, and cutting, including brushing, length measuring and washing.

1 ERW – Electric Resistance Welding

2 NDT – Non Destructive Testing

3 HSLA – High Strength Low Alloy

Karviná (Czech Republic) has a long tradition of producing longitudinally welded products for the mechanical industry and, more recently, the automotive market. Its facilities include tube mills, annealing furnaces, coating lines, cold-drawing benches, and machines for cutting and chamfering. A hot stretched reduction process is used in tubemaking for homogenous properties. The site also produces tubular products on cold sizing lines within narrow tolerances.

Vitry le François (eastern France) This facility is a major supplier of automotive tubular parts, including tubular cross parts for twist beam rear axles, and crash management parts and components. The facility’s core business is to design, develop and produce components which meet the quality standards required by the automotive industry. At Vitry, the emphasis is on tailoring the component to the individual requirements of each carmaker. Working closely with ArcelorMittal Automotive and the R&D team in France, Vitry’s dedicated team of engineers and designers provide tailored solutions to meet its customers’ needs.

Fresnoy (France) is located in the north of France close to the automotive centre of Valencienne and has more than 70 years of tradition in the production of steel tubes. Today’s range includes precision steel tubes for automotive as well as industrial applications. It is a centre of excellence for Magnelis®, sendzimir galvanized and aluminized tubes.

For the second time, ArcelorMittal is presenting its tubes for the automotive industry at the International Trade Fair Tube in Düsseldorf. The group will be showcasing rear axles beams and front crash components, produced at its plants Vitry and Hautmont.

Small Welded Industrial

ArcelorMittal Europe’s division Tubular Products has a long tradition as a supplier of high quality products to the mechanical tube market, which is  the  division’s biggest single market. Tubular Products offers a comprehensive and diversified range of tubular products that includes precision and cold-drawn tubes, cold and hot finished hollow sections, cold and hot finished pressure pipes as well as plain, galvanized or colour- coated pipes in a vast array of steel grades. The division’s excellent tube making process guarantees the

performance of its steel tubes for engineering applications and a wide range of mechanical ones.

Main applications

Structural applications

Scaffolding and fencing

Gas and water transportation Farm machinery equipment Mineral mining equipment Storage systems

Heavy construction equipment

Furniture

Six plants are specialised in the production of welded steel pipes for the mechanical engineering industry:

Krakow (Poland, produces longitudinal welded tubular products for mechanical purposes, such as building, water distribution, and scaffolding. Its location in the southern province of Malopolskie ensures reliable distribution throughout Poland, Czech Republic, Slovakia, Germany, Denmark, and the Baltic states. The products are produced from hot and cold rolled coils. Krakow is also a centre of excellence for galvanized products. In the last 12 months, the site has considerable increased its hot-formed range with new dimensions for structural and rectangular pipes.

Karviná (Czech Republic) has been manufacturing longitudinal welded thin-wall sections and pipes and thin- wall opened sections since 1929. The majority of the products are used in the mechanical and civil engineering industry because of their low weight and the possibility to use the products for installation of various utility lines. The company also produces precision cold-drawn and calibrated tubular products for the automotive industry. Located in the Eastern Czech province of Moravia, it is well positioned for distribution in the Czech Republic, Northern and Western Europe. Karviná opened a new melamine colour-coating line in autumn 2015.

The line will be used for coating pipes with lengths of 3 - 7.5m, and diameters of 17.2 - 219 mm, to be used in fire extinguishing systems, water mains in greenhouses and utility lines in production halls or shopping centres.

Iasi (Romania)is the largest producer of longitudinal welded steel pipes in Romania, and the nation’s market leader for mechanical tubes. From its location in Eastern Romania, it can easily distribute products throughout the country and in neighbouring countries, including Northern and Western Europe. The site also produces cold rolled profiles and crash barriers for motorways. Since 2015, the site offers new grades for hollow structural sections, and in 2016, it opened a new colour-coating line for cold-formed welded tubes.

Lexy and Rettel (France), referred to now as ArcelorMittal Lexy, are part of the newly acquired plants (which includes also Vincey and Fresnoy) from the previous Lorraine Tubes company owned by Condesa. They are located in the Lorraine region in Western France. It is the largest French producer of welded cold formed and hot finished tubes. Its complete dimensional range and acknowledged quality makes it an ideal supplier of all kinds of structural tubes for stockholders as well as for most demanding construction projects all over Europe.

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