COMPANY PROFILE -ArcelorMittal
Business Sector :Steel Manufacturing and Mining
Operating Geography :Europe, Global
About ArcelorMittal :ArcelorMittal is the world’s largest steel producer. It has headquarters in Luxembourg. It was formed from the merger and takeover of West European steelmaker Arcelor by the Indian owned Mittal Steel in 2006 for a sum of $33 billion. The total number of employees engaged in this company are 219,000 (2015).
ArcelorMittal Revenue :US 65.196 $ billion FY ending December 2015
Competitive Analysis of ArcelorMittal
|1. Global leader|
2. Research & Development
3. Geographic diversity
4. Diverse market portfolio
5. Vertical integration
|1. High indebtedness
2. Closing down of operations
3. Lower realizations from mining operations
|1. Deleveraging of assets|
2. Increasing demand in growing economies
3. Government policies to prevent dumping
|1. World economy is still under recessionary effects
2. Increased production from China
3. Increasing input prices
4. Global investment remains weak
5. Intense competition
USD 12.53 Great quality, Affordable pricing.
Detailed SWOT Analysis of ArcelorMittal
1) Global Leader- With yearly attainable production capacity of approximately 114 million tonnes of crude steel, having thousands of employees across 60 countries, and revenues of US 65.196 $ billion and around 10% of the world’s steel production, ArcelorMittal is the global leader in steel production.
2) Research & Development- ArcelorMittal has a strong R&D background with 1400 researchers in 12 centres located in Europe, Africa and the Americas. Each of its centres focuses on developing new steel solutions and products, with a budget of around $227 million in 2015.
3) Geographic Diversity- ArcelorMittal sells its products to consumers from over 160 nations, with steelmaking operations in 19 countries spread over 4 continents. It is the largest steel maker in Africa, Europe and the Americas, and also the 5th largest in the CIS region. Such a global presence allows it to diversify its risks across countries and make it able to form a strong distribution network.
4) Diverse Market Portfolio- ArcelorMittal has a wide array of products in its arsenal. It produces steel for various industries such as –automotive, packaging, household appliances and construction industries. Their product range lies from flat steel, long steel, pipes and tubes, to carbon steel and stainless steel alloys, thus the company is able to serve a wide range of customer demands through diverse industries.
5) Vertical Integration- From the mining of iron ore and coal to providing full range of steel products, the operations at ArcelorMittal extend in upwards and downwards integration both.
USD 12.53 Great quality, Affordable pricing.
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References used in ArcelorMittal Analysis Report
1. Arcelor Mittal website: http://corporate.arcelormittal.com/what-we-do/research-and-development/research-centres
2. Arcelor Mittal website: http://corporate.arcelormittal.com/~/media/Files/A/ArcelorMittal/investors/annual-reports/2015/Annual-Report-may-2015.pdf
3. Arcelor Mittal website: http://corporate.arcelormittal.com/who-we-are/from-ore-to-steel
4. Arcelor Mittal website: http://corporate.arcelormittal.com/who-we-are/from-ore-to-steel
5. Investor Guide: http://www.investorguide.com/article/20803/can-arcelormittal-survive-weakness/
6. NW Times: http://www.nwitimes.com/business/steel/arcelormittal-to-idle-hot-strip-mill-displace-workers/article_b80add96-9ec8-5454-a9ac-5a41e1d511d9.html
7. Loop: http://www.looptt.com/content/breaking-arcelormittal-shuts-down-plant-fires-all-workers
8. Telegraph: http://www.telegraph.co.uk/finance/newsbysector/industry/12119963/Steel-crisis-spreads-to-Europe-as-Arcelor-Mittal-shuts-Spanish-plant.html
9. Forbes: http://www.forbes.com/sites/kenrapoza/2016/01/21/china-to-the-world-this-is-going-to-hurt-you-more-than-it-hurts-us/#7e263e9671db
10. CNBC: http://www.cnbc.com/2016/12/30/china-will-produce-more-steel-in-2017-but-theyll-also-use-most-of-it-themselves.html
11. Fitch Ratings: https://www.fitchratings.com/site/pr/1004104
12. Economic Times: http://economictimes.indiatimes.com/industry/indl-goods/svs/metals-mining/demand-growth-government-schemes-may-revive-metals-industry-dun-bradstreet/articleshow/56854720.cms
13. Worldsteel: https://www.worldsteel.org/media-centre/Press-releases/2016/worldsteel-Short-Range-Outlook-2016---2017.html
14. Forbes: http://www.forbes.com/forbes/welcome/?toURL=http://www.forbes.com/sites/kenrapoza/2016/01/21/china-to-the-world-this-is-going-to-hurt-you-more-than-it-hurts-us/&refURL=&referrer=#7e263e9671db
15. CNBC: http://www.cnbc.com/2016/12/30/china-will-produce-more-steel-in-2017-but-theyll-also-use-most-of-it-themselves.html
16. FT.com: https://www.ft.com/content/8ad59bed-5110-314b-973c-5aebf6212682
17. AG Metal miner: https://agmetalminer.com/2016/03/17/arcelormittal-at-a-crossroads-2/
18. Worldsteel: https://www.worldsteel.org/media-centre/Press-releases/2016/worldsteel-Short-Range-Outlook-2016---2017.html