Steel Products
ArcelorMittal Announces $3 billion Savings Plan
Written by Sandy Williams
March 18, 2013
Written by: Sandy Williams
ArcelorMittal outlined a new management savings target of $3 billion by the end of 2015 by improving the reliability, productivity and energy efficiency of its blast furnaces and mills and shifting to low-cost U.S. gas. The company has already streamlined a number of assets though an aggressive restructuring plan in the last fiscal year, especially in its European operations. The idling and closing of facilities, which led to a 7 million tons reduction of its European production capacity, is expected to yield $1 billion per year in savings.
The company hope to expand its market by around 15 percent to achieve an EBITDA per metric ton of $150—a strong recovery from its drop to $87 per metric ton last year. Chief Financial Officer Aditya Mittal, said the improvement is achievable through market expansion and a rise to 95 million tonnes in global shipments.
ArcelorMittal is counting on its mining division, Brazilian steel operations and automotive steel business to drive profitability as well as an improvement in global steel demand. Lakshmi Mittal, Chairman and CEO, expects to be able to capture 40 million tons of demand recovery from Europe and North America over the next five years and foresees margins improving as fixed costs spread across the greater tonnage.
The company plans to reduce its net debt to $15 billion before planning additional capital expenditures.
ArcelorMittal also announced receipt of $810 million as the first installment in its sale of a 15 percent interest in ArcelorMittal Mines Canada, for $1.1 billion, to a consortium led by POSCO and China Steel Corporation.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Products
CRU aluminum news roundup
A roundup of this week's CRU aluminum news.
HR futures drift lower as open interest grows
Despite a higher settle today on CME hot-rolled coil (HRC) futures, the pattern over the past four weeks has seen nearby steel futures prices drift lower, while the back of the 2025 curve has remained supported.
Insteel acquires Liberty’s EWP assets for $70M
Insteel Wire Products Co., a subsidiary of Insteel Industries, has acquired Liberty Steel’s Engineered Wire Products (EWP) for $70 million with cash on hand.
Zekelman Industries takes aim at Mexico with lawsuit, trade petitions
Zekelman Industries has filed a lawsuit in Washington against the Republic of Mexico for allegedly violating trade agreements and dumping steel in the US.
Canada announces remission process for Chinese steel tariffs
The Canadian government announced a remission process for businesses for recently announced tariffs on Chinese steel and aluminum products and electric vehicles .