ArcelorMittal facts for kids

Kids Encyclopedia Facts

Quick facts for kids
ArcelorMittal S.A.

Former ArcelorMittal headquarters in Luxembourg, popularly known as the ARBED building
Type	Société Anonyme
Traded as	Euronext Amsterdam: MT NYSE: MT CAC 40 component AEX component
ISIN	ISIN: [https://isin.toolforge.org/?language=en&isin=LU1598757687 LU1598757687]
Industry	Steel
Predecessors	Arcelor Mittal Steel Company
Founded	2006; 19 years ago (2006)
Headquarters	24-26, Boulevard d’Avranches, Luxembourg City, Luxembourg
Area served	Worldwide
Key people	Aditya Mittal (CEO) Lakshmi Mittal (executive chairperson)
Products	Steel, flat steel products, long steel products, wire products, plates
Revenue	US$68.275 billion (2023)
Operating income	US$2.340 billion (2023)
Net income	US$919 million (2023)
Total assets	US$93.917 billion (2023)
Total equity	US$56.068 billion (2023)
Owner	Lakshmi Mittal (37.4%)
Number of employees	154,000 (2022)
Subsidiaries	Disteel, Dillinger Hütte, Dofasco, Aperam South America, Creusot-Loire, ARBED, ALZ (steelworks), Arcelor

ArcelorMittal S.A. is a huge company that makes steel. It's based in Luxembourg City, Luxembourg, but it works all over the world. It was created in 2006 when a company called Mittal Steel bought and joined with another company called Arcelor.

ArcelorMittal is currently the second-largest steel producer in the world. In 2022, it made 78 million metric tonnes of steel. The company is very big, ranking 197th among the world's largest companies in 2022. It has about 154,000 employees and its total assets are worth around $94 billion.

History of ArcelorMittal
Company Structure
- Main Companies That Formed ArcelorMittal
- Employees Around the World
Company Locations
Products and Activities
See Also

History of ArcelorMittal

ArcelorMittal was formed when Mittal Steel bought Arcelor. Mittal Steel itself was created from a merger of two other companies, ISPAT International and LNM Holdings. The company's story goes back to 1976.

How ArcelorMittal Was Formed (2006–2008)

ArcelorMittal was created in 2006. This happened when Mittal Steel, an Indian-owned company, bought a European steel maker called Arcelor. The deal cost about $33 billion.

Mittal Steel made an offer to buy Arcelor, even though Arcelor had planned to merge with another company called Severstal. Arcelor's shareholders didn't approve the Severstal merger, so Mittal Steel's offer went through.

The new combined company was named ArcelorMittal. Its main office is in Luxembourg City. This new company became the world's largest steel company, producing about 10% of all the steel made globally. In 2007, its total earnings were $105 billion.

By 2008, the company had 320,000 employees in 60 countries. In October 2008, ArcelorMittal was worth over $30 billion.

Sometimes, companies have to sell parts of their business. In 2008, ArcelorMittal had to sell some plants, like the Bethlehem Steel plant in Lackawanna, New York. This was a condition from the U.S. government to allow the merger. Other plants were closed because of economic reasons. For example, after buying Ukraine's largest steel producer, Kryvorizhstal, the number of employees there was reduced.

Challenges and Changes (2011–2014)

In 2010, the company's earnings dropped because steel prices went down. By 2011, ArcelorMittal started making less steel in Europe because people weren't buying as much. It also sold some parts of its business to other companies. In 2011, its stainless steel division became a new separate company called Aperam.

By 2012, due to too much steel being made and less demand in Europe, the company had to stop using some of its furnaces. In October 2012, it permanently closed two furnaces in Florange, France. The company also reported a loss of $709 million in the third quarter of 2012, partly because China's economy was slowing down.

In 2013, ArcelorMittal bought a steel mill in Calvert, Alabama, United States, for $1.55 billion. This was a joint project with Nippon Steel. The facility was renamed AM/NS Calvert.

The company also signed a big deal in Senegal to develop an iron ore mine and build a 750 km railway. However, the project didn't go as planned. In 2013, the government of Senegal sued ArcelorMittal. In 2014, a court ordered ArcelorMittal to pay Senegal $150 million.

Between 2012 and 2014, ArcelorMittal changed its European business. It reduced the number of employees and closed some plants to deal with changing steel prices. In 2014, the company made 98.1 million tons of steel.

Recent Years (2015–2020)

In 2015, the company had a big loss of $7.9 billion. The CEO said this was because of too much steel coming from China, which made prices go down. In early 2016, the company raised $3 billion to help reduce its debt. It also sold a part of its business called Gestamp Automacion for $979 million. By February 2016, ArcelorMittal made about 6% of the world's steel.

In February 2017, ArcelorMittal announced its first annual profits in five years! This was a big step forward. The company also made plans to combine its steel operations in Brazil with another company. In May 2017, ArcelorMittal and the Steel Authority of India Ltd (SAIL) agreed to work together to make steel for cars.

By March 2017, ArcelorMittal was trying to buy Ilva, a large Italian steel company. Ilva owned the Taranto steelworks, which is Europe's biggest steel producer. The steelworks had faced problems with pollution. ArcelorMittal won the bid to buy Ilva for €1.8 billion in June 2017. They promised to invest a lot of money to improve the plant. In November 2018, ArcelorMittal officially took over Ilva's steel operations.

In July 2017, the company's earnings went up by 19.3% compared to the previous year.

Black Snow in Kazakhstan (2018)

In January 2018, something unusual happened in Temirtau, Kazakhstan: black snow fell. There's an ArcelorMittal plant in that city. Local people thought the pollution from the plant caused the black snow. A company spokesperson said that a lack of wind meant the pollution wasn't blown away as usual.

Ilva Agreement Problems (2019)

In November 2019, ArcelorMittal announced it wanted to end its agreement to run the Ilva steelworks in Italy. They said the Italian government had removed legal protections needed to carry out environmental plans. Also, a court decision might force them to close a furnace. This started a legal disagreement with the Italian government, as Ilva is a very important employer in the city of Taranto.

Selling U.S. Operations (2020)

On September 28, 2020, ArcelorMittal sold its business in the United States to another company called Cleveland-Cliffs. The sale was for about $1.4 billion.

Company Structure

Lakshmi Mittal is the executive chairman of ArcelorMittal. His family owns 40% of the company's shares.

Main Companies That Formed ArcelorMittal

ArcelorMittal was created from two main companies:

Mittal Steel Company: This company had acquired many other steel companies over the years, including International Steel Group and Ispat International.
Arcelor: This company was formed from the merger of Aceralia (Spain), Usinor (France), and ARBED (Luxembourg). Arcelor also acquired companies like Dofasco in Canada.

Employees Around the World

As of 2012, ArcelorMittal had thousands of workers in the United States, especially in states like Indiana and Ohio. Many of its employees in North America are part of the United Steelworkers union. At that time, about 100,000 of the company's 260,000 employees were in Europe.

By the end of 2013, the company employed over 232,000 people. About 37% of them were in the European Union, and 16% were in other European countries. The rest were in Asia, North America, South America, the Middle East, and Africa. ArcelorMittal is also the largest private employer in Luxembourg. By 2020, the company had over 18,000 employees in North and South America.

Company Locations

Headquarters

The main office of ArcelorMittal is in Luxembourg City. This building used to be the head office for ARBED before it merged to form Arcelor.

Major Steel Plants

ArcelorMittal operates many large steel plants around the world:

In Brazil, including ArcelorMittal Timóteo.
In Belgium, with plants in Zelzate and other cities.
In Ukraine, with ArcelorMittal Kryvyi Rih.
In France, with plants in Dunkerque, Florange, and other locations.
In Germany, with plants in Bremen and Eisenhüttenstadt.
In Mexico, with ArcelorMittal Mexico.
In Poland, including ArcelorMittal Poland.
In Spain, with plants in Avilés, Gijón, and other cities.
In Luxembourg, with plants in Belval and Differdange.
In Algeria, with ArcelorMittal Annaba.
In Canada, with ArcelorMittal Dofasco.
In Argentina, with Acindar.
In Italy, with Ilva in Taranto.
In the United States, including Hibbing Taconite.
In South Africa, in Vanderbijlpark.

ArcelorMittal also has joint ventures (projects with other companies):

AM/NS India in Hazira (with Nippon Steel).
Annaba steel complex in Anaba, Algeria (with Sidar).
AM/NS Calvert in Calvert, Alabama, United States (with Nippon Steel).

Carbon Footprint

A company's carbon footprint is the total amount of greenhouse gases it releases. ArcelorMittal has been working to reduce its carbon footprint. In 2020, the company's total carbon dioxide emissions were 150.8 million tonnes. This was a decrease from previous years, showing they are making progress in reducing their environmental impact.

ArcelorMittal's Total Carbon Emissions (in kilotonnes)
Dec 2017	Dec 2018	Dec 2019	Dec 2020
194,800	188,800	181,900	150,800

Products and Activities

Steel being coiled at an ArcelorMittal facility in Brazil

ArcelorMittal does many things, including research and development (creating new things), mining (getting raw materials), and making steel. In 2016, the company produced about 90 million tons of steel.

The company makes many different types of steel. For example, it makes over 200 unique kinds of steel for cars. Half of these were developed after 2007. One special type is Usibor 2000, which was released in 2016. This high-strength steel is about one-third stronger than other steels used for making cars, making cars safer and lighter.