Issue 4 | October 2008
Transcription
Issue 4 | October 2008
boldspirit Issue 4 | October 2008 06 The inspirational Ed Viesturs 08 Leadership Conference in New Delhi, India 18 ‘transforming tomorrow’ through construction 39 One day at the site of… ArcelorMittal Temirtau 44 PAs of ArcelorMittal Also inside, our favourite Indian recipes! boldeditorial People came here with expectations and curiosity. Now, everyone seems very relaxed. We have come a long way on this journey.” Mr Mittal, Chairman and CEO, closing comments in New Delhi, India 01 India was chosen to host our second Leadership Conference because the country represents the will to assume a Leadership position in the modern world. Welcome to the post-Leadership Conference edition of boldspirit! A buzz of excitement spread through ArcelorMittal in the ‘post-conference’ world. This year’s location for the gathering of our top managers was New Delhi, India. It was a bold – and ultimately excellent – choice. But our Group is a strong group. Part of this strength comes from how truly global we are. What was clear at the Leadership Conference was how our global presence and diversity are key ingredients of our Group’s DNA. In one room we had representatives from over 60 nations, yet the feeling was of one big family. The conference demonstrated with absolute certainty that our Group possesses a tightly knit, global community of top managers; a community that contains and is open to sharing a wealth of knowledge from our units, segments and functions across the world. This issue of boldspirit sets out to capture the energy of the event, and to communicate to you the fruits of our leaders’ labours. The conference is more than a get together: it is an intensive three-day work session, after which all 320,000 of us set to work carrying out the goals, strategies, and programmes identified by our top management. Let’s celebrate our ‘boldness’ ArcelorMittal’s goal is to provide the Leadership that will transform tomorrow’s steel industry; a common goal every one of us should bear in mind as we go about our daily work and lives. ‘Boldness’ is the attitude that has allowed us to dare to dream such a dream, to revive the steel industry and to help build the structure of the modern world (see our construction feature on page 18). ‘Boldness’, in the way our Group is increasingly embracing it, is what is going to carry us through challenges to the next level. ‘Boldness’ was much discussed in New Delhi. Mr Mittal, Chairman and CEO, invited us to be proud of our exceptional numbers thus far (page 38) – numbers that people in the steel industry would not have dared dream about a few years back. Aditya Mittal, CFO, told our top leaders that our message of ‘boldness’ is getting through to the outside world. This is something in which we should all take great pride, because ultimately, we are all ambassadors for our Company. Mr Mittal said to the delegates in India that if we can do more, than we must. Just look at the last point on the list of ‘Ten proposals on how we can be bolder’. We can further integrate our global team and never lose sight of our long-term goal. The common thread that unites all of us is ‘safe, sustainable steel’. We plan to be producing it for a very long time. And now, enjoy this issue of your magazine, boldspirit… Our ArcelorMittal University will officially open its doors at the end of 2008, as part of its phase one. Through a global network of training facilities, the University is setting out to make various programmes available to every ArcelorMittal employee. Now if that isn’t a bold vision, we don’t know what is! This issue’s bold visionary, Ed Viesturs (page 6-7), completed a 16-year quest to climb all 14 of the world’s highest mountains! As with ArcelorMittal, putting safety first was an important part of attaining his bold ambitions. On that very important theme, John Macnamara, VP Global Health and Safety, introduced ‘Journey to Zero’, our H&S improvement strategy (pages 34-35), at the Conference. Perhaps now, more than ever, it is important for us to understand what we mean when we say we are bold; to reflect on the example of Ed Viesturs. As a group, and like Ed, we have set very ambitious goals. There may be challenges – indeed there will be challenges – as Ed’s experience shows us. Ten proposals at the Leadership Conference on how we can be bolder 1.New steel solutions for automotive 2. Friendly electrical steels 3. Ferritics 4.Higher wind generation towers through design innovations 5. Entering the Chinese market 6.Vertical integration of raw materials…more Mergers and Acquisitions 7. Listening to customers 8.Adjusting our activity to prevailing market conditions 9.Using our current facilities to 100% 10.The integration of our global team towards the same goal Our values in your language: English: Sustainability, Quality, Leadership; French: Développement Durable, Qualité, Leadership; Spanish: 02 boldcontents Have your say For a look at some of our favourite Indian recipes see the special insert, between pages 16 and 17!” boldspirit is your magazine so we would like to hear from you: Comments? Contributions? Questions? Contact us at [email protected] 06 Ed Viesturs 08 03 boldmessage 24 boldnewsfromsegments 42 boldmedia 04 boldleadersspeak 34 boldsafety Mr Mittal sets the tone Interviews: Davinder Chugh and Arnaud Poupart-Lafarge 06 boldvisionaries The inspirational Ed Viesturs 08 boldfeature Leadership Conference in New Delhi, India 18boldfeature ‘transforming tomorrow’ through construction Leadership Conference Global highlights Interview with John Macnamara and Robert Kanz 36 boldstatistics Steel giants: blast furnaces 38 boldbusiness Using diversity and strength to deliver strong results 39 boldfocus ne day at the site of... O ArcelorMittal Temirtau 39 ArcelorMittal Temirtau ArcelorMittal in the news 44 boldspotlight PAs of ArcelorMittal 46 boldpeople ArcelorMittal people 50 bolddepartments Mining and Steel Greenfields 52 boldquiz Did you know...? 53 boldinterview relaxed moment with… A Gulnara T Alekeyeva Editors Contributors Special thanks/addendums Nicola Davidson, Editor at Large David Cowan, Head of Publication Mary Carey, Editor in Chief Raquel Córdoba, Editor Charlotte Rodaway, Editor Julie Buchler, Photo Management Raúl Álvarez, Amelia Bauerly, Hennico Benedicte, Julie Buchler, Tuhina Chugh, Svetlana Chvanova, Vincent Daenen, Ginette de Matteis, Pierre Engel, FutureBrand, Phil Hankinson, Perrine Henrion, Martín Gaitán, Olivia Gandon, Ewa Gebala, Marc Hooker, Richard Leze, Sandra Luneau, Joska Londero, Nikolay Kubrakov, Romain Moreau, Monique Muller, Sylvie Petetin, Laura Podlesny, Jolice A Pojeta, Lynn Robbroeckx, Charlotte Rodaway, Andrés Romagnoli, Tetyana Ryvchuk, Marion Saul, Lisa Stewart, TBWA, Emma Tuite, Vanessa Vanhalst, Mario Villamiel, Barbara Wendl, Nikianna Yiannopoulos, Zainab M Tankiwala Thoburns: Xanthe Hynds, Carlo D’Alanno (designed by Thoburns.com) Photo Library ArcelorMittal Photo Library, Giles Barnard, Corbis, Daniel Delguste, Getty, Veikka Gustafsson, istockphoto.com, Christophe Laprun, Jaco Boshoff Mardo Photos Vanderbijlpark, Himanshu Pahad, Fabien Mariaud de Serres, Jason Tilley, Claude Vasconi, Ed Viesturs collection, wide.lu To all of the contributors to this issue: your time and effort are greatly appreciated. Bravo team! And an extra special thank you to Martine Scheuren, because she is an excellent communicator and we forgot to mention her efforts in our last issue! Note: in the English version of Issue 3, Raymond Sze was incorrectly identified as Chairman Li and Patrick Manning as George Maxwell Richards. Our apologies! boldspirit is printed on recycled paper and is Elemental Chlorine Free (ECF). The paper has been awarded the NAPM Recycled trademark and is produced at a mill that is certified ISO 14001. boldspirit is also available in French, Spanish, German, Russian, Brazilian Portuguese and Chinese. Sostenibilidad, Calidad, Liderazgo; German: Nachhaltigkeit, Qualität, Führungskompetenz; Brazilian Portuguese: Sustentabilidade, Qualidade, boldmessage 03 Welcome to this new edition of boldspirit. Through these pages you will take a virtual trip to our Leadership Conference in New Delhi. It was an extraordinary conference where our 650 top leaders shared a common vision for ArcelorMittal: to become one of the most admired companies in all sectors. Our leaders have formulated a strong vision, but it will take the efforts of each and every one of you to make that vision a reality.” Mr Mittal sets the tone Dear Colleagues, It was a pleasure and an honour for me to welcome the 650 main decision makers of our Group to my home country, India, and to witness in action our strong, and closely knit, Leadership community at ArcelorMittal. Upon seeing this executive team work together, discussing our challenges and building proposals, a thought came to my mind: on the one hand, the delegates at the conference originated from more than 60 countries, and represented different functions and units of our business. On the other hand, our team of executives got along so well, and created such a positive and relaxed working ambience, that one could easily forget about all the different nationalities. In many ways our expansive ArcelorMittal family has no nationality; it belongs to nowhere and everywhere at the same time. I feel proud that we have achieved this, and in such relatively short time. What I witnessed in that room at the Taj Palace Hotel in New Delhi is a microcosm of what ArcelorMittal is today. Our leaders there represented all the richness and diversity of our Company, all the wealth of knowledge and the pride of belonging to a common Group, made up of 320,000 ArcelorMittal people worldwide. “ Our leaders at the Leadership Conference represented all the richness and diversity of our Company, all the wealth of knowledge and the pride of belonging to a common Group, made up of 320,000 ArcelorMittal people worldwide.” After New Delhi, I feel even more confident about our capacity to overcome – together – the challenges our Group is facing today. One of these is safety. While it is true that our accident frequency rate has improved, our number of fatalities is unacceptable. The positive news is that with the right approach, investment and discipline, we can make substantial improvements in a relatively short space of time. Take ArcelorMittal Point Lisas, in Trinidad and Tobago, where our safety performance has improved by 600% in only one year! If we can maintain this type of momentum, we will make substantial progress on our ‘Journey to Zero’ and become the safest steel company in the world. This is a journey ArcelorMittal has to travel. We are talking about human lives, thus it is our duty to succeed, and to succeed quickly. As I said in New Delhi, Health and Safety starts at home. A healthy organisation can only exist when it is composed of healthy people, in their minds and in their bodies. That is why I would like to ask all of you to remain healthy. With the energy and enthusiasm of all of us, if each part of this Company reaches the level of the best in each area, if we move forward in living our values and putting a bit of boldness in everything we do…then I am sure that we can literally astound the world. Our Leadership Conference has generated an excitement which is spreading through our entire organisation. And while the leaders have formulated a strong vision, it will take the efforts of each and every one of you to make that vision a reality. This Company is ready for further change and for empowerment, as you will feel going through the pages of this magazine. There is a growing commitment, a feeling that this Company belongs to all of us, and that makes me very proud. I hope that you share this pride – and love – for ArcelorMittal with me. Lakshmi N Mittal, Chairman and Chief Executive Officer Liderança; Russian: Устойчивость, Качество, Лидерство; Bosnian: Odrivost; Kvalitet, Liderstvo; Swedish: Hållbarhet, Kvalitet, Ledarskap; Polish: 04 boldleadersspeak Davinder Chugh, Member of the Group Management Board, is Responsible for Shared Services*. With a wealth of over 30 years experience in the steel industry, Davinder speaks to boldspirit about the key importance of our supply chain and ‘the ArcelorMittal way of doing things’. Interview with GMB Member Davinder Chugh Q: Our 2008 Leadership Conference in New Delhi was based around the theme of ‘sustainable growth’. How is ArcelorMittal’s supply chain focused to deliver and support the growth path our Company is on? DC: “For the last two years we have been shaping ‘Shared Services’ as the transversal functions of the Group. Today, the challenges ArcelorMittal faces are different. We are on an organic growth path and gearing up to deliver massive Greenfield and Brownfield growth projects. The supply chain is a key transversal element which starts even before any project activity begins. For example, in Liberia, the project started with trying to deliver key capital goods even before infrastructure existed at ground level. Trying to build a railway line where no proper port or access roads exist presents unique challenges. Given the nature of our industry, the supply chain needs to provide for security of supply of raw materials. Just look at the complexity of only six key raw materials such as iron ore, coal, limestone, ferroalloys, metallic, refractory – all of them come in different quantities using different modes of transport, with different storage and use conditions and from different parts of the world to a single production point – and we run over 60 such plants in 27 countries! Making our size a source of competitive advantage means that the supply chain should be flexible so that raw materials can be seen as a global resource. We are continuously investing to be prepared to respond to the demands of our Company’s growth in terms of ports, shipping, railway, etc to maintain our competitive edge in the supply chain. Q: Given that our supply chain extends beyond our Company, how do you see its role in Corporate Responsibility? DC: We are conscious that our CR extends beyond just the immediate procurement activities in the supply chain. The primary focus area is trying to influence our contractors’ safety behaviour. Usually, the types of jobs contracted are more labour intensive and inherently involve more risk. We have been working with our contractors to enforce better training and more safety consciousness. We also only deal with vendors who subscribe to our values and code of ethical conduct. We have our commitment to develop SMEs, meet empowerment requirements of different regions and respond to local economic and social priorities. We support these with our locally adapted procurement policies. We also focus on the responsible use of energy and making technology choices which are energy efficient. As a responsible corporate citizen we follow transparent and trackable KPIs for our focus areas. Q: ‘Moving towards a common ArcelorMittal way of doing things.’ We like this saying from your last interview in boldspirit! Can you explain it a little further and give us some concrete examples of how some functions are already starting to move in this direction? DC: Purchasing as a Group has focused on TCO (Total Cost of Ownership) over the last two years as their ‘mantra’. TCO is a massive transformation project where every buyer and user is trained to look for best value instead of price. Today, the purchasing community is aligned to TCO buying as a common culture and a common way of doing purchasing. The buyers of ArcelorMittal were forced out of their comfort zone to look for value beyond lowest price and the conventional buying process. “ We are conscious that our CR extends beyond just the immediate procurement activities in the supply chain. The primary focus area is trying to influence our contractors’ safety behaviour.” TCO buyers in the Company are today looking at strategic sourcing and commodity management. Value-in-Use models define the life of our buyers today. TCO is moving beyond our immediate environment by working with suppliers to share ideas and reduce costs in their perimeter. Another important project is AIM200 which is about defining the common way of doing business at ArcelorMittal. Cross functional teams across the Group are defining what are the most optimum processes in the Company and building our IT systems around these optimised processes which should work seamlessly across plants and offices. Four clusters – Flat, Long, Stainless & Transversal processes – have been taken up to define standard processes and templates. This will lay a solid foundation of a common ArcelorMittal way of doing things.” * Reporting to the CEO Zrównoważony rozwój, Jako, Przywództwo; Slovakian: Udržateľnosť, Kvalita, Vodcovstvo; South Sotho (South Africa): Botsitso, Boleng, boldleadersspeak 05 He is the last appointed and youngest member of our Management Committee. Still, Arnaud Poupart-Lafarge has over 18 years’ experience in the steel industry. Responsible for Africa and Commonwealth of Independent States (CIS), Arnaud has quite a few challenges ahead. Interview with MC Member Arnaud Poupart-Lafarge Q: What are your first priorities for Africa and CIS? APL: “The GMB at the Strategy seminar held in July 2008 established an impressive set of objectives in terms of growth and performance for our units. In order to comply with those objectives, we have a first set of priorities: to work with. I have good friends in the Group! The last two years I spent in the Long Europe segment headed by Gerhard Renz, were really interesting in this regard: it is the only segment in the Group where integration had such a strong meaning, as it included half former Arcelor and half former Mittal Steel sites. • Establish good communication links with the management, employees, communities and other stakeholders of the units, so we can share with them the segment’s objectives and the roadmap towards achieving them. Although I have changed responsibilities quite often, I’m not a fan of change. It is also important in a professional career to build experience on good foundations, so there should not be change for the sake of change, just like butterflies going from flower to flower. Here is a piece of advice I give to young managers around me: make sure that every step in your career is built on the previous one, so that you can deepen your experience and know-how; make sure that each step has a real added value. • Launch transformation and performance enhancement programmes in all units to ensure that the current facilities reach our Group’s benchmark performance levels. This will start with safety standards. • Set up large, fully dedicated management teams to ensure the success of our growth programme and other significant investments to implement in the coming years. Q: In some of the countries under your responsibility (Kazakhstan, Ukraine, South Africa), ArcelorMittal is one of the main private investors. How is our Group contributing to these growing economies? APL: As one of the largest private companies, we are both contributing to and benefiting from the creation of wealth in those growing economies. But the size of the investment does not change the level of responsibility towards local communities. It is our commitment to behave in a responsible manner by implementing our Corporate Responsibility principles. In these countries, we are trying to locally construct a dialogue with each of the governments to help them make the most appropriate decisions in order to boost the development of their economies. Q: If you had to highlight a challenge in terms of Corporate Responsibility what would it be? APL: I would mention two, with safety being the first. Of course, we all remember the tragic accidents which occurred in our coal mines in Kazakhstan. We are addressing the situation there very seriously, both in terms of practices and of the equipment of the mines, in close cooperation with the mining segment. Our second challenge in terms of CR is the ecology. In all of our units we have developed a complete set of measures, part of a strategy to align the performance of these units in the coming years with our best performance everywhere. Q: During your career, you have had the opportunity to work in different positions and countries. What for you is the main advantage – and risk – of change? APL: I like renewing professional challenges, but I think this is not what I have been looking for in these changes; it is more about knowing people. The main asset of my numerous changes in the organisation is the number of colleagues I have had the opportunity Q: Has this always been the case for you? APL: So far so good! I have always been able to use lessons from previous assignments. Q: According to your experience in different countries, is there something that all ArcelorMittal people share? If yes, what? APL: There is an ArcelorMittal way to deal with business and to treat communities and customers, central to the ArcelorMittal global culture. There is also an ArcelorMittal way of driving the Company. Of course it has to do with boldness, but also the drive towards excellence, performance improvement, the focus on customer requirements and a lot of respect towards all our stakeholders. It is a main task of our management to develop, for our 320,000 people, a common understanding and culture, without denying our specificities.” Ketapele; Zulu (South Africa): Ukulondoloza, Lqophelo, Ukuhola; Greek: αειφορία, ποιότητα, ηγεσία; Kazakh: Тұрақтылық, Сапа, 06 boldvisionaries Are long-term goals only realised when one knows how to be patient? In each issue of boldspirit, we talk to the men and women around the world who inspire us with their bold visions. Here we continue our series with mountaineer Ed Viesturs. The inspirational Ed Viesturs At ArcelorMittal our path to Leadership is to keep on aiming higher. To say to ourselves that if we can do more, then we must! On evening two of the Leadership Conference in New Delhi, Aditya Mittal introduced guest speaker, Ed Viesturs, the perfect person to demonstrate the experience of aiming higher and higher. One of the premier high-altitude mountaineers of our time, Ed is the living embodiment of Leadership. And the lesson that he offers is that it does not matter when there are set backs – because there always are. Set backs are something that achievers figure into their strategy. What matters is that, despite them, or because of them, one never loses sight of the long-term goal. Ed has climbed many of the world’s most challenging summits. Most astonishingly, he recently completed a 16-year quest to climb all 14 of the world’s highest mountains (all above 8,000 metres) without the use of supplemental oxygen. In doing so, he became the first American and the 5th person in the world to accomplish this feat. He reached the summit of his 14th peak, Annapurna, on May 12 2005. Big dreams even when he was small When Ed was a child, he read a book about Annapurna, the 8,091 metre mountain in the Himalayas, Nepal. “The book was amazing,” he said. “It had everything that I was looking for; friendship, camaraderie, challenges…” The story of Annapurna seized his imagination and climbing became his dream, albeit one with a difficult start, since he was born in the flatlands of Illinois. Thanks to his mentors, Ed started to dream even bigger. If he wanted to be really bold, his ultimate goal would be to climb Mount Everest. However, with a slight difference: “Most people who climb Everest use supplemental oxygen. It increases your chances for success. But I did not want to climb on their terms.” There are no shortcuts to the top The story that really took hold of our top leaders was the Annapurna challenge. The day after Ed’s talk, many of them could be overheard using Annapurna as an analogy for some seemingly insurmountable struggle they had in their own lives – personal or professional. After ten years of apprenticeship, he climbed the north face of Everest. “When you climb something as big as Everest, the entire climb takes about 10-12 weeks. You work with a team. You have to carry loads of equipment. Individually you have to act but you also have to be a part of a team.” This story is highlighted in the book, ‘No Shortcuts to the Top’. Ed’s autobiography and documentation of his summiting of 14 ‘eight-thousanders,’ so inspired Aditya that it was he who invited Ed to be the guest speaker. For the first attempt they got very close but calculated that if they reached the summit, they would die on the way down. So they made the decision, very conservative and very prudent, to go down and try again. All in all, Ed has climbed the summit six times, but he also suffered four failed attempts. It is in the retelling of these that one cannot help but be impressed by his sheer determination to never let a failure force him to give up for good. Ed said that he learned from an early age that he had to listen to the mountain. “The mountain would decide what I have to do.” Ed’s ability to maintain his long-term vision, while allowing for short-term ‘hiccups’, is one of the keys to success. His ability to know when the time is wrong is as critical as knowing when the time is right to push forward. Annapurna was Ed’s childhood dream. He was determined to realise it but the mountain did not make it easy. He made two failed attempts in 2000 (the North Face) and in 2002 (the East Ridge). He only completed the final summit in 2005. What stands out in the Annapurna story, as well as runs through all of his mountaineering tales, is the way that Ed combines boldness with a conservative adherence to safety. His motto has always been that climbing has to be a round trip. All of his planning and focus during his climbs maintains this ethic. This approach resonates beautifully with ArcelorMittal’s interpretation of boldness. We also want to reach new peaks, but always with our long-term strategy and the Sustainability of our Company in mind. Finally, in 1994, everything went right. They did not crawl to the summit near-death; He made his way out of Illinois and began to Want to read more about this they got there with a lot of energy in reserve. climb voraciously under the tutelage of mentors, It was after Everest that he got the idea to fascinating world-class mountaineer? eventually becoming a qualified guide. “I was Visit www.edviesturs.com climb all 14 of the 8,000 metre summits. willing to take the necessary steps to slowly work “I knew that it was something that I could do. my way to higher and higher peaks. Since that I learned long ago that to survive this campaign, time I have been a summit mountaineer over I had to be conservative. I had to be respectful. 200 times. I learned a lot as a guide. Our rules I could always come back to climb these peaks. are very basic and very strict. Safety is our A lot of times, when people don’t want to try priority. Getting people down is just as, or more something, they say that it is impossible. I had important than, getting them to the top.” to find the balance between risk and success.” Жетекшілік; Dutch: Duurzame ontwikkeling, Kwaliteit, Leiderschap; Afrikaans (South Africa): Volhoubaarheid, Kwaliteit, Leierskap; Italian: 07 A lot of times, when people don’t want to try something, they say that it is impossible. I had to find the balance between risk and success.” > Ed Viesturs on Shishapangma’s summit ridge “ Our rules are very basic and very strict. Safety is our priority. Getting people down is just as, or more important than, getting them to the top.” > Ed Viesturs on Manaslu Summit Sviluppo sostenibile, Qualità, Leadership; Romanian: Sustenabilitate, Calitate, Leadership; North Sotho (Sepedi): Boitekanelo, Boleng, Boetapele; 08 boldfeature ArcelorMittal is capable of many great things. Indeed we are – I believe – capable of astounding ourselves. And this must be our challenge.” Mr Mittal, Chairman and CEO New Delhi On September 9 2008, 650 ArcelorMittal decision makers descended on New Delhi, India, for our Company’s second Leadership Conference. The main theme was ‘transforming tomorrow’ through sustainable growth. This event offers our most senior management the opportunity to come together to present their strategies, to discuss critical issues and to plan the best road ahead for the safe, sustainable growth of the world’s number one steel company – ours! 09 10 boldfeature Basque: Jasangarritasuna, Kalitatea, Lidergoa; Hungarian: Fenntartható fejlődés, Minőség, Vezetés; Luxembourgish: Nohaltëgkeet, Qualitéit, 11 Our core product improves the lives of millions of people, and they want more and more of it. Our presence is transforming many communities and enabling them to prosper. If every part of our Company can become as good as the best, we will be a truly astounding company.” Mr Mittal in his Opening Vision speech The ‘Mother of all Leadership Conferences’ New Delhi, India, 2008 With its exhaustive schedule, our Leadership Conference has set the tone and pace for the next phase of our Group’s development. To recreate the entire event would take, well, three days! Thus, we can only bring you the highlights: a taste of the sights and sounds and issues in New Delhi. In preparation, organisers worked around the clock to ensure that all aspects of the three-day event – travel logistics, preparation at the Taj Palace Hotel, activities planning, catering, technical details and most importantly the presentations ran as smoothly as possible. Also, for the very first time, the Performance Excellence Awards were handed out in between sessions (see page 12-13). Pierre Gugliermina, CTO, congratulated all participants who entered in this awards programme to identify and recognise outstanding contributions to our Group. Day 1 Kick-off by our hard-working (and flying) CEO Just a few hours before the event started, our Chairman and CEO, Mr Mittal, flew to New Delhi directly from Singapore, where on the previous night he was handed the Forbes Lifetime Achievement Award (see page 43). Never let it be said that Mr Mittal is anything less than inspiring when it comes to hard work! Mr Mittal opened the Conference with an inspirational speech in which he invited all delegates to “astound the world”. His Opening Vision was well received by the more than 650 delegates of over 80 nationalities. Safety, Leadership, growth, CR and reputation were the main focuses. John Macnamara, VP Health and Safety, led the H&S session in India (in priority position number one) by presenting our Group’s ‘Journey to Zero’ improvement strategy (see pages 34 and 35). The Conference was not just a static event where people sat and absorbed information. Along with voting and panel sessions, working groups characterised the event. On Day 1, one such working group, headed by MC Member Robrecht Himpe, responsible for Flat Carbon Europe, made a lively presentation on how to improve working conditions in ArcelorMittal. Occupational Health, respect, HR processes, emails and work-life balance – all issues that have a daily meaning for us – were some of the topics treated during this session. Their proposals were based not only on the results of the Leadership Survey (in which 22,000 exempts participated), but also on a survey conducted in August 2008 among 4,500 blue collar workers. “How we do, what we do” As Sustainability was the underlying theme, it is not surprising that the Corporate Responsibility (CR) session, opened by GMB member Gonzalo Urquijo and Rémi Boyer, VP CR, was in some ways the key note of this Leadership Conference. Gonzalo, who calls CR: “How we do, what we do,” spoke about how it is directly related to ArcelorMittal’s business. “Following what Mr Mittal said in his speech,” he told the delegates: “The world will grow. We want to capture this growth in harmony with our stakeholders.” Rémi Boyer, who leads a team of 11 people consisting of the Corporate CR team as well as the ArcelorMittal Foundation team, introduced our Group’s new CR strategy. Rather than focusing on the 12 commitments identified last year for ArcelorMittal, it will focus on three points: investment in our people, making steel more sustainable and enriching our communities. Felicidad Cristobal, who is its Managing Director, also presented the ArcelorMittal Foundation. Using an interactive map, Felicidad demonstrated how, with over 560 projects around the globe and a budget of 56.8 million US$, the Foundation is living up to its commitment: ‘In each action we transform the world’. To close the day, a working group led by Evie Roos, VP HR and Communications, Long Carbon Europe, shared with the delegates the highlights of the recent Leadership Survey. Rolled out in four continents and 76 countries, these results are helping to measure our overall managerial performance. Thanks to the survey, we know that... · 94% of ArcelorMittal exempts have confidence in the future of the Company · 84% would recommend ArcelorMittal as a great place to work ·9 0% are proud to work for ArcelorMittal Ten challenges for ArcelorMittal employees 1.Minimising the cost structure while increasing production 2.Systematic personal development 3.Consolidation: standardised management tools in a complex organisation 4.Capitalising on existing know-how and making it practical for old and new sites 5.The price of steel versus the cost of raw materials 6.AIM200 – building global, highly efficient processes to enable growth 7.Maintaining and increasing market share without giving up our position through price leadership and customer service 8.Delivering major operational improvement performance throughout our plants 9.Creating long-term performance for business areas 10. Changing more and faster Leadership; Czech: Udržitelnost, Kvalita, Vůdcovství; Turkish: Dayanabilirlilik, Kalite, Liderlik; Irish: Inbhuanaitheacht, Caighdeán, Ceannaireacht. 12 boldfeature Winners of the 2007 Performance Excellence Awards Category Team name Name of the project Safety, Health and Environment ArcelorMittal Jequitinhonha Production Efficiency ArcelorMittal Indiana Harbor #4SP Product Quality ArcelorMittal Vega and Global R&D Customer Satisfaction Innovation ArcelorMittal International ArcelorMittal R&D Structural Long Products Revenue Generation / Growth ArcelorMittal Kryviy Rih Green Coke Plant: an Intelligent Solution for Pig Iron Production ArcelorMittal Indiana Harbor – #4 Steel Producing Breakout Reductions CIP Eliminate crater defect on exposed Galvanised and bright spot defect on exposed GA Shanghai World Financial Center Angelina® beam, an architect’s dream transformed to an industrial product Reorganisation of Sales & Marketing to improve market mix for higher profitability Did you know… Over the next four years, ArcelorMittal Galati in Romania will plant one million trees on its manufacturing site… Steel is infinitely 13 If we want to be close to our customers, we have to talk to them and listen to them.” Michel Wurth, Member of the Group Management Board Day 2 “No other material will do” The morning of Day 2 of what moderator Simon Hobbs (CNBC) called “the mother of all leadership conferences”, opened with a round table. Ten delegates expressed our biggest challenges for the months to come. Talent attraction and retention, self-sufficiency in raw materials, operational excellence and integration of business processes were the focuses of this session. Aditya Mittal, CFO, introduced the Growth Strategy Session. “Steel,” Aditya said, “has experienced unprecedented growth in the last decade, which has not always been the case.” What drives this growth? The industrialisation of two billion people in developing nations such as China, Russia, India and Brazil, on a scale the world has not yet seen. “Our Group’s aim is to capture the potential demand,” he said. Aditya also addressed concerns in the markets, saying that: “In the short-term, we can all have hiccups, but fundamentally in the long-term, these developing countries will continue to grow. What unites all of these growth patterns (cars, homes, skyscrapers) is steel. And thank God no other material will do.” Bedrock of our growth strategy Aditya also emphasised that this belief, that demand for steel will continue to grow, taking into consideration the challenges, forms: “the bed rock and the basis of our growth strategy.” His presentation highlighted our Group’s efforts to support ArcelorMittal’s ongoing strategy through our strong pipeline of projects and our three elements of growth: Brownfield, Greenfield and M&A. He also reiterated that we can, and are, expanding via geography, value chain and through products. “We cannot just focus on growth to remain leaders,” he added. “Cost reduction is also part and parcel of our growth plan. We need to reduce our overall cost base because it increases our overall global competitiveness.” GMB Member Sudhir Maheshwari then spoke about the role of M&A in our growth strategy. “We have unrivalled industry Leadership. Our 3D strategy – the three engines which drive this strategy – are our upstream self-sufficiency (iron ore, coal), our distribution and downstream capabilities and finally, Greenfield. Our M&A is absolutely resolute to lead the way to ensuring we become one of the most valued companies on the planet.” India Session - Finance Minister Chidambaram The Honourable Finance Minister Chidambaram was the keynote speaker of Day 2. It was clear, even before he entered the room, the respect that people have for this deep thinking economist. The Minister said he was proud of what Indian-born Mr Mittal has accomplished and of the fact that ArcelorMittal is a world-renowned company. He also commented on the challenges ArcelorMittal projects are facing in a “land of paradoxes.” Customers and Products Innovation, collaboration between teams and market-oriented R&D were some of the ingredients of the case studies presented during the session: ‘Customers and products’. In one of the case studies of the session, the Long Carbon Europe team stressed the need to develop high-value and niche products to increase ArcelorMittal’s market share against competing materials, such as concrete. A couple of projects mentioned were the jumbo beams for the foundations of the Freedom Tower in New York and the 100 kilo tonne of sheet delivered since 2004 for a project to protect the Lagoon of Venice, Italy, from the floods. Automotive is another essential market for ArcelorMittal. One of the case studies of the session explained our Group’s contribution to the Logan, the most profitable car in the Nissan-Renault group. Its engineering principle is: designing at the lowest cost. Romania is the heart of the global Logan programme, and our Romanian site in Galati produces 50% of the total steel provided by ArcelorMittal to Dacia. Our participation in the solar energy market was highlighted by Philippe Darmayan, CEO Steel Solutions and Services. “We are using our competency in the roofing field as a new way to put more value in our products,” he explained. The final aim is to make solar energy a competitive energy through a combination of energy and added-value. At the end of the session, GMB Member Michel Wurth stated: “If we want to be close to our customers, we have to talk to them and listen to them.” He invited Greg Ludkovsky, responsible for Group-wide R&D to the stage, who explained that since our last Leadership Conference in Cannes, our R&D colleagues have developed 37 new products! recyclable. More than 95% of the steel used in the automotive industry is recycled at the end of its life, saving millions of tonnes of CO2 14 94 % boldfeature of ArcelorMittal exempts have confidence in the future of the Company. The supply chain challenge In the ArcelorMittal world, eight million tonnes of raw material are transported every year. Our 62 plants all over the world receive raw materials from 60,000 suppliers. Supply chain is about having these materials at the right time in the most cost efficient manner. How can we achieve this? The session on ‘Dimensions and realities of the supply chain challenge in today’s environment’ tried to answer this question for all conference delegates. “Historically, many battles have been won or lost because of the supply chain,” explained Davinder Chugh, Member of the Group Management Board, Responsible for Shared Services (see interview with Davinder, page 4). Day 3 Our Journey to Leadership The last day of the Leadership Conference started with ArcelorMittal challenges and continued with some important steps in what has been called our ‘Journey to Leadership’. Bernard Fontana, Member of the Management Committee, Responsible for Human Resources, reminded the audience that, at last year’s Leadership Conference in Cannes, 50% of the participants expressed that they would not recommend ArcelorMittal to their family members as a place to work. A full action plan was put together to turn this around. Some of the key achievements to date have been the signature of our Global H&S agreement with trade unions, the recruitment of 180 group engineers, 1,000 vacancies filled thanks to JobMarketOnline and the rolling out of our recent employer branding campaign plus the induction programme, developed to allow newcomers “a faster understanding of Group business strategy and a smoother adaptation process.” The next bold steps What are our main Leadership challenges ahead? In some countries, 50% of our leaders will retire in the next 5-6 years. “We need to place ambition at the right level: we need to reach the best capability to attract, retain and grow the talent,” Bernard stated. Brian Callaghan, VP Leadership Development, showed the audience the new movie of the ArcelorMittal University, which carries the theme ‘Grow with us’. “We encourage you to use the University for yourselves, your direct teams and all your employees, as it is intended to serve all ArcelorMittal people, also at a local level,” said Brian. How will we achieve our goal to become, not only the leader in steel, but the recognised leader in the industry in terms of Sustainability? We will do it through ‘safe, sustainable steel.’” Gonzalo Urquijo, Member of the Group Management Board, Responsible for Corporate Responsibility ‘Safe, sustainable steel’ Once again, energy was high on Day 3. The afternoon session focused on the environment, a critical issue for the entire steel industry. Invited speaker, Nobel Prize Winner and one of the world’s leading experts on climate change, Rajendra Pachauri, set the stage for this challenging issue. Dr Pachauri’s speech was met with a standing ovation. After Dr Pachauri’s speech, GMB Member Christophe Cornier, kicked-off a series of presentations based on ‘The CO2 challenge for future steelmaking’. There are many challenges such as: market-based policy instruments, technological development and international competitiveness. What can ArcelorMittal do to tackle these challenges? Some of the solutions proposed were, the advocating of global schemes including all major CO2 emitters, special treatment of the energy intensive steel sector and the promotion of technological solutions. An open session with the GMB followed an afternoon ‘Values’ session. With no agenda, and an atmosphere of transparency and trust, our top leaders were invited to ask the GMB any question they wished. Our top 650 decision makers did not disappoint, raising issues that were challenging. Yet the atmosphere remained open and friendly and many jokes were made when the going got a little tough. Commenting on this excellent atmosphere, Mr Mittal said that he saw a big change between this event from Cannes: “Our family has grown. We are one company.” A love for ArcelorMittal At the end of a fantastic, but exhausting, three-day Leadership Conference in New Delhi, Aditya remarked on what a sense of passion and commitment there was – a love for ArcelorMittal. As proof, he noted 69% of attendees voted that they would be in favour of another transformational deal. But you could also feel it in the warm, friendly atmosphere of the room. Gonzalo congratulated the organisers and stressed the need to communicate the ideas and initiatives that had been discussed. Michel highlighted the fantastic exchange of knowledge, invoking our leaders to take away the five best ideas: “…and put them into practice.” “I can clearly see, at the conclusion, what this Group has tried to convey,” Mr Mittal said. “One can see the maturity of our organisation; the alignment. 102 speakers presented over three days. Maybe some people only had a few minutes, but everyone’s words had meaning. The passion and the way things have been expressed have created an excitement in the organisation. This Company is ready to grow. This Company is ready for change. This Company wants to be the most admired company in the world!” Note: A lot of excitement and hard work has also gone into making sure that everyone in our Group is informed about the outcome of this year’s Leadership Conference in New Delhi. All presentations can be found at: Corporate News > Leadership Conference 2008 > Presentations on www.myarcelormittal.com To what extent are we living our values? Our three brand values have changed the Company’s behaviour: 34% admit that our values have had a considerable impact on key outcomes or decisions taken in their areas. Company behaviour should change more in the future if we want to live our values, especially in terms of Sustainability. Our Company values are supporting campaigns to guide the way in which we are entering markets, such as Mozambique, as well as the trust of our shareholders and investors with regards to our Leadership position. every year… There could be molecules from Henry Ford’s first Model T automobile in the cutlery you use when you eat tonight… In Brazil, we are 15 using managed, renewable eucalyptus, which allows us to drastically cut emissions related to steel production. We have planted over 16 boldfeature India a feast for the senses The trick to enjoying India is to jump in, head first. Enjoying a three-hour visit to an open air market like Delhi Hatt, the heady smell of patchouli, the softness of saffron coloured silks and many shiny things entice one to spend far more rupees than planned. No price is ever the same twice, but the charm and friendliness of the Indian people encourage you to barter with the same fervour with which a Bollywood movie star jumps into a song and dance routine. India is a moveable feast – eastern style… 120,000 hectares of it so far… ArcelorMittal is one of the core members and the coordinator of the ULCOS programme, which aims to reduce 17 India has dozens of regional cuisines. Some dishes are not for the timid, but there is much more on offer than curry dishes. We really enjoyed the pancake-like dosas, and we loved the snack foods like samosas and papri chaat. Although curries are favoured in the south, meat-oriented Mughlai cuisine, which is similar to Middle Eastern food, is preferred in the north – in particular tandoori dishes. “The question is not should I be in India. The question is, can I afford to NOT be in India?” Finance Minister Chidambaram On the last day of the Leadership Conference in New Delhi, when Mr Mittal’s relaxed and happy mood invited everyone to feel the same, GMB Member Sudhir Maheshwari made a small confession. Having been the person who proposed India as the location for the conference, he was relieved it had come off as wonderfully as it had. For most of the delegates, even the poor one bitten by a monkey, India was an experience they will never forget. It was pure sensory overload. But it is also not difficult to see why Sudhir might have had a few reservations after making his bold proposal! The organisers had their work cut out for them in more ways than one. Delhi airport is in the midst of expansion, but upon first arrival in such a major city, it can take one somewhat by surprise. A lively debate session was set-up between Minister Chidambaram and one of India’s leading female journalists. When asked why major companies should go to India and not China, the Minister replied: “The question is not should I be in India. The question is, can I afford to NOT be in India?” Why not India indeed, as much for the culture as for anything else? And of all the parts of India to dive into, the best is the food. Dosas for breakfast, sweet lassis for tea, cucumber and mint raita, mango chutney, samosas and matar paneer. Who can resist? But Indian food is best when shared. Thus we invite you to enjoy a bit of India with these four recipes, for which we especially thank Mrs Mukherjee, Mrs Rekha Chugh, Zainab M Tankiwala and Gaurav Nagpal. “ This is a land of paradoxes: don’t be shocked by paradoxes. Look closer and you will see transformation and change happening in India.” Finance Minister Chidambaram Namasté! But… there is something magical about Delhi and about India. When Finance Minister Chidambaram discovered that for most of the delegates it was their first time in India, he told them: “This is a land of paradoxes: don’t be shocked by paradoxes. Look closer and you will see transformation and change happening in India.” This is so true! The grand hotels are more English than they are in England! The tuk tuks or three wheeler auto rickshaws (the only fun way to travel) careen wildly between Mercedes Benzes and motorcycles carrying entire families. There can be rubble on one side of the street and an insanely manicured lawn on the other. Small huts over here. Gleaming office buildings over there. And everywhere, no matter the dust, immaculate and beautiful Indian women in saris that are all the colours of the rainbow. CO2 emissions associated with steelmaking by more than 50%... By 2010, Spain will have the world’s largest high-speed rail network, with 18 boldfeature The use of steel as a construction material has seen meteoric (or shall we say, ‘Mittalic’) growth in recent years. Steel buildings are increasingly rising up to transform the skylines of countries all over the globe. But is reaching the sky the only goal? Here we offer a small sampling of the many advantages of modern steel: it can take towers to the top, but it also facilitates beautiful design, offers lightweight, economical and flexible solutions and is clean, safe and recyclable. In short, we love ‘safe, sustainable steel.’ transforming tomorrow through construction Looking at the illustration, you will undoubtedly recognise a few of the buildings. Along with the Eiffel Tower, you see the Cristal Tower, the Burj Dubai, the Calatrava Chicago, the Bionic Tower, the Empire State Building and the Petronas Tower. The Shanghai Financial Center, far right, is especially important to ArcelorMittal: we provided 490 metres of steel to create this ‘Pearl of the Orient’. Eiffel Tower 330m, Paris, France Cristal Tower 450m, Madrid, Spain Burj Dubai 788m, Dubai, UAE (under construction) Calatrava Chicago 610m, Chicago, USA (under construction) 490 Bionic Tower 1,200m, proposed for Hong Kong or Shanghai, China Empire State Building 381m, New York, USA Petronas Tower 410m, Kuala Lumpur, Malaysia Shanghai Financial Center 490m, Shanghai, China 19 ArcelorMittal provided 490 metres of steel towards the construction of the Shanghai Financial Center, below, far right. 20 boldfeature Over the next few pages, we will introduce readers to three special buildings made of steel. From the very famous Beijing Olympic Stadium in China to a highly designed vocational school in France, steel is increasingly the material chosen to create those buildings that are ‘transforming tomorrow’. Reaching the sky with increasingly strong steel! The golden age of steel in construction In many ways, steel is an ancient material. Its origins date back to the 13th century BC when iron and charcoal were first combined properly. The rise of metals in construction began in the 1700s with the use of iron columns within walls. Iron beams and columns became a common feature in large industrial buildings over the years. But steel’s modern incarnation is generally credited to Sir Henry Bessemer. With the invention of the Bessemer process in 1855, steel became a relatively inexpensive mass-produced good. It also has become an integral part of bridges, pipelines and now skyscrapers. Today, steel is one of the most common materials and is an essential element in every part of the infrastructure of the modern world: from buildings to tools and automobiles to appliances. Reaching the sky with increasingly strong steel! Before steel was used, a construction was supported by its outside walls. Architecture changed dramatically with the advent of steel. Because it is a strong and yet light metal, builders were able to construct a framework that could support the weight of a tall building. It is this very steel ‘skeleton’ that, in fact, makes skyscrapers possible. And because a skyscraper is supported by its internal steel framework, its exterior can be completed with stainless steel and glass, allowing for some of the breezy, elegant structures we see today. From the very beginning of modern architecture, steel has played a key role in the construction of skyscrapers. As urban phenomena, these buildings mark their time, as well as their environment. In the collective unconscious, they remind us of the Babel Tower, as one of mankind’s recurrent challenges. In Europe, the Americas, the Middle and Far East – these outstanding towers sprout in every corner of the earth and require the most advanced steel qualities to hit new records in terms of height, as does for instance the Shanghai Financial Center with its spectacular 490 metres of ArcelorMittal steel in the ‘Pearl of the Orient’ skyline. > Close-up of the Beijing Olympic Stadium Did you know... … that if the Eiffel Tower were to be rebuilt today, the engineers would only need one-third of the amount of steel? 2,230km of rails, all made by ArcelorMittal… Steel is essential in the construction of wind power generator towers: an 80 metre tower needs 21 The structure of China’s brand new national stadium, known as the ‘Bird’s Nest’, is made of 45,000 tonnes of interwoven steel plate. Unwrapped, the ‘strands’ of the Bird’s Nest would stretch for 36km.” A nest made of steel to host the Olympic Games Hitting fantastic heights however, is only one of the many things that steel, as a construction material, can do. Take for example, the intricate design work of the Chinese Olympic Stadium. After the fashion of the Athens Olympic Stadium built for the 2004 edition, steel was the material of choice for the Olympic Game Stadium in Beijing. Designed by the Baslebased architecture firm Herzog&Demeuron in collaboration with Chinese artist Ai Weiwei, the Stadium conceived for the 29th Olympic Games stands out because of its symbolic architectural design and its magnitude. With its majestic dimensions (330m long, 220m wide and 69m high) this building can hold an audience of up to 91,000 people on a surface of 250,000m2. It required around 45,000 tonnes of steel welded into girders to form ‘the steel twigs of the nest’. Started in December 2003, the construction, which mobilised 8,000 workers, was completed last June and handed over to the Chinese authorities. A real challenge on this unique building site, and almost impossible to achieve using a material other than steel! In all, 110,000 tonnes of steel were used in the construction of the national stadium, including concrete-reinforcement bar. At least three million tonnes of steel all together was used for the construction of the stadiums, the Olympic village and public transport projects in Beijing. Steel is the material of choice for the Olympic Stadium in Beijing. Some 45,000 tonnes of steel were welded to form the ‘twigs of the nest’. > > Beijing Olympic Stadium about 174 tonnes of steel… ArcelorMittal duplex stainless steel plates will play a major part in the sector gates system that will keep 22 boldfeature From large, well-publicised projects to smaller, local ones, steel is being used in many of the most impressive constructions, worldwide. Did you know... The City of Arts and Science in Valencia, Spain, was designed by the Spanish architect Santiago Calatrava, who, in addition to being a prolific sculptor and painter, is also responsible for the Chicago Spire (the Calatrava Tower, as seen in the illustration on pages 18-19). > The City of Arts and Science The City of Arts and Science is fast becoming one of Spain’s top tourist attractions, something that should make us all proud, as its unique buildings were made possible because of steel! Mont St Michel – a UNESCO world heritage site – an island… ArcelorMittal is providing 20% of the steel for the Freedom Tower in New York, 23 Recently inaugurated in September 2008, the Gallieni Secondary School has become a symbol of rebirth for its local community.” > Artist’s impression, Gallieni Secondary School Open your eyes and you will see: steel is everywhere! At first sight, the City of Arts and Science in Valencia, Spain, designed by the Spanish architect Santiago Calatrava, seems to be made of concrete. Wrong impression! Steel is used to build the museums, a panoramic cinema and the various pieces of equipment that make up the cultural complex. The final element of this major architectural piece of art, the Agora, is currently under construction. Breakthrough steel floors for a high-tech vocational school Designed by architect Claude Vasconi, the Gallieni secondary school in Toulouse, France, is definitely one of a kind. Built on the site of a former chemical plant which exploded in 2001, causing 30 fatalities and more than 2,000 injuries, this school has become the symbol of rebirth after the industrial tragedy. Iconic, the project is carried out in line with our Sustainability commitments in order to guarantee the well-being of its users, trying to master the noisy environment generated by the airport’s air lane and the gigantic planes of the Airbus plants which fly just above the school. Entirely built with ArcelorMittal steel, this 40,000 m2 school uses our breakthrough perforated Cofradal 200 floor, developed especially for this project by ArcelorMittal’s Building Construction Support and ArcelorMittal’s Construction, in collaboration with the architect of the project. The merits of steel These are just some of the ways that steel is helping to transform tomorrow. Can we take a moment to sing steel’s praises? Steel buildings are usually constructed much faster than buildings using other materials; the costs are usually lower compared to traditional building methods; they are lighter weight; they are easier to maintain; and they carry a reduced risk of fire. Steel is recyclable, which makes it an especially cost-effective and environmentally sound alternative to any other construction material. Above all, steel is strong and durable. It can withstand hurricanes, high winds, heavy snow and even earthquakes. Houses made of steel are more energyefficient and come with reduced maintenance. Modern technologies have greatly influenced the growth of the use of steel in construction since it can be used for better design and fabrication. But then, why not give the final word to an expert, Pierre Engel, Development Manager at ArcelorMittal’s Building Construction Support? In a world made of steel “Most appreciated by designers for its fineness and precision, steel is the material that can come closest to the lines of the sketch, the architect’s drawing, and is second to none in creating aesthetic and strong Archean structures. Whether in the form of plates or foils, steel offers multi-coloured, lacquered and enamelled coats as well as solid or shiny carapaces made of stainless steel. Today, steel is widely used in all types of constructions: in bridges, structures, public and utility buildings such as warehouses or car parks, but also in shopping centres. Its use very often augurs architecture of the highest quality. It is sometimes transformed into offices, sometimes into Olympic stadiums as in Athens or Beijing, sometimes into skyscrapers such as the Freedom Tower, under construction on New York’s Ground Zero. Huge train stations as in Berlin, state-of-the-art airports as for instance in London, Madrid, Hong Kong or Paris… Steel is part of every challenge. In addition to those colossal constructions, in terms of height, loading and tonnage, it is also at the heart of other, more humble constructions where cost-efficiency and the adequate use of the material are crucial. This refers to schools, small activity centres, flats or houses, but also to the makeover of existing buildings where steel works wonders. In order to generalise the use of steel in those kinds of constructions, we need to fight hard against traditional techniques deeply rooted in these often small-scale proximity markets. This year, the theme of the 11th Venice Architecture Biennale is ‘Architecture beyond building’. This slogan puts forward that architecture, beyond building, needs to make its environmental impact one of its main concerns. Here, Sustainability clearly is the guiding principle, and will increasingly become an essential concept for all future constructions. As for other materials, their technologies are in constant progress. And that is exactly what our challenge will lie in: producing practical steel solutions that guarantee Sustainability, efficiency and innovation to customers. This fierce technical and financial struggle, aimed at increasing our market stakes, means a double opportunity for us: first, our Group prides itself on outstanding innovation and production capacities, but what’s more, steel can be recycled endlessly.” Constructalia is ArcelorMittal’s steel construction website that offers fascinating and insightful updates on products, steel trends, design and so much more in the global steel industry. Discover more about the wonderful world of steel at www.constructalia.com including 2,149 tonnes of ArcelorMittal Jumbo Beams. We are the only steel company in the world capable of providing these beams… Michael Sierra, 24 boldnewsfromsegments Readers will notice a slightly different look to this issue’s ‘news from segments’. The shift in layout will encourage flexibility in the stories and groups featured. In this issue, we hear from Stainless, Flat Carbon Americas, Automotive, Tubular and Long Carbon Europe. > Genk Meltshop team wins Imitation Special Award News from Stainless On June 11-12 2008, more than 250 people, workers and managers, from our Stainless plants all over the world met in Bilbao, Spain, for the Stainless Challenge Continuous Improvement 2008. This event, launched four years ago by the Stainless segment, has of yet no equivalent in the ArcelorMittal Group; nonetheless it has been benchmarked by the Excellence Award programme. patissier, is modelling his chocolate creations on steel products in Asturias, Spain… Jean-Louis Paron of Gandrange, France, brought boxing to 25 The event highlights the nine best industrial actions led by Continuous Improvement teams mainly composed of shop floor workers.” “ Our group is so big that whenever you face a problem, there is always an internal specialist somewhere who can solve it.” Pierre Gugliermina, Executive Vice President Success story for managing imitation: Stainless ‘Challenge’ inspires Continuous Improvement Each year ‘The Challenge’ is a milestone for ArcelorMittal’s Stainless community. Its spirit is fully in line with ArcelorMittal’s identity and vision. Its success is based on enhanced sharing of best practices, fostering performance spirit at each level of the Company and on proximity management focused on workers’ recognition for Continuous Improvement actions. In that sense, ‘The Challenge’ embodies the results of actions deployed on the shop floor all year long. As an example, total savings from the projects presented during the previous ‘Challenges’ represent eight million €. If we consider all improvement actions implemented within the Stainless segment, savings reach 100 million €. The event is a major recognition time for teams who have led industrial innovative projects on sites. Focus on imitation The event highlights the nine best industrial actions led by Continuous Improvement teams mainly composed of shop floor workers. After being audited on various criteria and trained to present their project at their sites, teams have the opportunity to explain their improvement project in front of a jury which includes Gonzalo Urquijo, Senior Executive Vice President ArcelorMittal and Member of the Group Management Board, Pierre Gugliermina, Executive Vice President ArcelorMittal and Chief Technology Officer, and Jean-Yves Gilet, Executive Vice President ArcelorMittal and Stainless CEO. The jury has the difficult mission to evaluate the best projects throughout the Stainless segment. The 2008 ‘Challenge’ edition was focused on imitation, a best practice to be promoted within the whole Group. As Pierre says “Our group is so big that whenever you face a problem, there is always an internal specialist somewhere who can solve it.” ‘The Challenge’ is the opportunity for operators from all over the world to share their experience and exchange knowledge with others. This is why it is such a powerful tool to boost imitation, not only within the segment, but also outside of it. Stainless does open the sharing to other segments to widen the innovation tank: for example this year ArcelorMittal Dofasco was one of our guest speakers. They presented an improvement project on galvanising lines. In addition, Stainless was proud to receive Didier Lux, Airbus Senior Vice President of Quality. Our special guest shared best practices applied within Airbus on project and quality management. He insisted on the power of such an event to lever out the best in each worker around the world. Continued on page 26 Palestine as part of a solidarity initiative for children and other victims of the Israeli-Palestinian conflict… 42 people from 16 countries travelled 26 boldnewsfromsegments “ This is a great opportunity to improve your personal development and professional skills. I think that for any professional worker in a global market it is very important to have new challenges.” Paulo Cardozo, General Industrial Manager, São Paulo, Brazil Continued from page 25 High performance through sharing The projects that demonstrated performance achieved through sharing had the best chance to win the prize. This year the ArcelorMittal Imphy team received the trophy from Gonzalo and Jean-Yves for their ‘Breakthrough improvement on a bottleneck leveller’ project. In addition, ArcelorMittal Genk meltshop team won the imitation special award. ‘The Challenge’, which symbolises Stainless’s determination to improve and share, became a powerful management tool which year after year embodies our managerial model. Formerly focused on improving sharing within the segment, openness and imitation of practices outside of Stainless will be especially recognised in the next edition. Mobility within the Americas Many employees in the Americas region (Argentina, Brazil, Canada, Costa Rica, Mexico, Trinidad and the United States), are taking advantage of ArcelorMittal’s international mobility programme as a unique opportunity to advance their career development, transfer knowledge throughout the region and generate an environment filled with best practice sharing. To date, an estimated 75 employees from across the Americas have relocated through the mobility programme to other Americas locations to learn new skills and share business experience. A great opportunity Within the Flat Carbon America region, several employees have accepted temporary or long-term assignments in the United States, Canada, Mexico and Brazil. Employees from Long Carbon America are also participating in this mobile opportunity, with employees relocating to Canada, Brazil, Costa Rica or the USA. “This is a great opportunity to improve your personal development and professional skills,” says Paulo Cardozo, General Industrial Manager from São Paulo, Brazil who has now been working in Costa Rica for more than two years. “I think that for any professional worker in a global market it is very important to have new challenges. It’s a special opportunity, which is why I chose to move to Costa Rica with my wife and three children.” to Mexico in June for the Slab Casting Knowledge Management Programme, hosted by ArcelorMittal Mexico… ArcelorMittal offers three 27 Around 75 of our Flat Carbon America colleagues have so far relocated through the mobility programme. By accepting temporary or long-term assignments in other regions, these men and women are achieving new levels of personal and professional growth. News from Flat Carbon America > Gustavo Hernán Penna Gustavo Penna agrees that there are many benefits to participating in the mobility programme. Penna, a General Financial Manager from Buenos Aires, Argentina, has also relocated with his wife and children to Costa Rica. “For me, there were three important reasons to take advantage of this experience: professional development, new opportunities and having the support of my family to make such a change.” For Raquel Pittella Cancado, formerly of ArcelorMittal Tubarão (Vitória), Brazil, being part of ArcelorMittal’s mobility programme was perfectly aligned with her focus on expanding her career to an international level. When she was interviewed for an open position in Chicago, USA, for a Director of Strategy & Integration, Flat Carbon America, she was looking forward to being part of the Americas post-merger integration effort. In Raquel’s case, she researched how other employees and companies manage such a transition. “You and your family must want “Your ability to contribute, perform and innovate to make this move. Your home office has to must be attributes you bring to each assignment support and see the benefits of your move, you have during your career,” said Raquel. and the new location has to need someone “What’s exciting is that the Company worked like you. With those points covered, managing with me to align me with a new position and the move is much easier,” said Raquel. “From the a professional development plan that included job offer in the USA, until the time I moved mobility and competences that I was looking there, it took about eight months to move from to further develop. I was at a point in my career Brazil to Chicago.” where moving forward – and moving For all three Americas employees, the transition somewhere new – was a positive option.” worked well. “The transition was quiet and Preparing for change balanced – my family adapted very quickly and I immediately aligned with my new team,” Each of these employees agrees that says Penna. it takes some special preparation to embark on a new life in a new country. The benefits of moving throughout “To move to another country you have to be the region prepared professionally and psychologically. There are numerous benefits from such You really must learn the country’s language an experience. For Cardozo, working for and understand the culture,” said Cardozo. another Americas country has led him to “You must improve your capacity to focus, expand his vision of our business. “I learned make a plan and use your network of friends how important it is to work within a team to support you during your transition to a new when you are in another country.” country. These efforts, along with planning, Continued on page 28 are an essential tool to your success.” children’s camps in Temirtau, Kazakhstan, where 500 children aged 6-14 enjoy lakeside summer activities… Since its founding 54 years ago, the 28 boldnewsfromsegments What’s exciting is that the Company worked with me to align me with a new position and a professional development plan that included mobility and competences that I was looking to further develop. I was at a point in my career where moving forward – and moving somewhere new – was a positive option.” Raquel Pittella Cancado, formerly of ArcelorMittal Tubarão, Brazil, now working in Chicago, USA Continued from page 27 “You need to understand the dynamics of that team and adjust your management skills accordingly,” Cardozo adds. “It is possible to move to another country, but your success truly depends on you and your capacity to be flexible and to change within new situations.” For Raquel, the experience has enhanced her ability to be flexible, creative and reinvent how to work and communicate. “There is not just one way to achieve an efficient result. Respecting others’ experiences enables you to be aware of and sensitive to new solutions. Accepting such an opportunity is very personal. It is critically important to understand how to approach managing your role within another culture,” she says. “But if you want to be part of ArcelorMittal’s future transformation, this experience offers amazing benefits for personal and professional growth.” Penna agrees. “I really recommend this experience to those who are searching for a great opportunity to grow, develop and meet the new challenges of working in a new place with new people.” Professional Training Centre of Stainless Brazil has trained four thousand specialised professionals… ArcelorMittal’s London office football 29 News from Automotive Worldwide “ Since scrap selling did not significantly affect bottom line profit, many companies felt there was no need to keep track of it on a global level. But today that situation has changed.” Christophe Laprun, Commercial Manager, Recycling Scrap buy-back: a growing, dynamic programme in the Automotive division For steelmakers, scrap metal is an essential resource whose supply needs to be secured in terms of volume and quality. For this reason ArcelorMittal has implemented an efficient scrap buy-back programme directly with its customers. The production of one ton of steel requires anywhere from 10% of scrap in the integrated route up to 100% in electrical furnaces. On a yearly basis, ArcelorMittal buys an average 28 million tons of scrap of which 20% is high-quality scrap. On the other hand, steel industry customers, especially carmakers, generate a large percentage of scrap (up to an estimated 30% of flat sheet), during their fabrication and stamping processes. Over the past five years, scrap has become scarce and has known continuous price increases. For example, in Europe, the first six months of 2008 experienced a 98% price increase compared to December 2007. Consequently, scrap buy-back has become a strategic priority for both ArcelorMittal and the automotive industry who must re-evaluate how to manage scrap. Today, contracting scrap purchase directly with our clients, who need to recycle and optimise their scrap, is a way to guarantee ArcelorMittal’s scrap supply. price based on the market, professional handling from the Recycling department, and a homogeneous route. “The scrap buy-back initiative is about opening doors to synergies,” says Richard Lézé, Controller, Automotive division. “ArcelorMittal recuperates a valuable resource for its own production needs while helping clients control cost by optimising the management of scrap.” Client perspective on scrap buy-back In the past, scrap selling was done on a very local, individual basis, mostly through the intermediary of scrap dealers. “Since this aspect of the business did not significantly affect bottom line profit, many companies felt there was no need to keep track of scrap selling on a global level. But today, due to major fluctuations of scrap prices and the globalisation of the industry, that situation has changed,” comments Christophe Laprun, Commercial Manager, Recycling. Other concerns for automakers: managing environmental issues throughout the life cycle of a vehicle has also become another challenge due to stringent recycling regulations. ArcelorMittal has the ability to offer a truly global service to its clients, which has become essential for automakers. Through the scrap buy-back initiative, automotive clients are guaranteed not only price indexed scrap sales The automotive solution but also traceable recycling that meets In 2007, ArcelorMittal produced approximately international norms (ISO 14001) and overall service from steel professionals that recognise 116 million tons of steel. For this purpose the value of steel. Beyond the scrap buy-back a constant flow of scrap metal is needed. programme, ArcelorMittal is also committed Moreover, the quality of scrap is mandated to helping carmakers find the best solutions in order to sustain a good quality of steel. for end-of-life vehicles. To achieve these two targets, quality and Continued on page 30 quantity, one solution has been found through a common initiative of ArcelorMittal’s Automotive and Recycling teams: offering and negotiating scrap buy-back options with automotive clients who generate large amounts of scrap. For clients, it assumes a fair team got third prize in July’s Steel Business Briefing Annual Summer Soccer Tournament in Hyde Park, London… Steel Solutions and Services June 30 boldnewsfromsegments Continued from page 29 A far-reaching initiative ArcelorMittal’s goal for 2008 is to buy-back 2.5 million tons of scrap from our clients. This achievement will be due in great part to efforts in the automotive industry, which currently makes up 50% of the total scrap purchased within this programme. At present, most of our Company’s efforts in the Automotive division have been focused in Europe. Moving forward, ArcelorMittal wants to increase efforts in the NAFTA and South American regions, include scrap buy-back projects in all Greenfield initiatives with new clients and establish logistics platforms in strategic areas to assist the collection process. The changing dynamics of the steel industry have made scrap buy-back a strategic element of the business for all actors involved. Today, ArcelorMittal is the only company that can offer a truly global service to its clients. As a leader, ArcelorMittal considers itself a reliable and responsible partner. The scrap buy-back programme illustrates this commitment. CLN, one of the leading steel service centres, stampers and wheel makers, mostly present in Europe, generates 435,000 tons of high-quality scrap per year. Given the economic context, CLN has decided to centralise the scrap management in 2007 with the support of the ArcelorMittal Recycling department. Direct contracts have been settled in France (two sites), followed by Poland (four sites) and Romania (one site). The main advantages, as described by Gilles Peru, CLN Group Scraps Coordinator, are: reducing the number of intermediaries; better managing flow and volumes on site; simplifying administrative issues; and better identifying reliable contact partners. “Optimisation of the supply chain with the support of a big group leads to a win-win situation,” concludes Gilles Peru. magazine reports on the growing use of stainless steel for swimming pools in Europe… In July, Petr Wiechiec and Petr Podstawka, from 31 News from Tubular “ Establishing and enhancing operational excellence in all our 26 plants is our first priority.” Jerome Granboulan, CEO of Tubular Products The Tubular Products division of ArcelorMittal is a large and diversified producer of pipe and tube products, serving markets around the world from 26 operating units in 11 countries (Venezuela, Mexico, United States, Canada, France, Romania, Poland, Czech Republic, Algeria, Kazakhstan and South Africa). With its seamless, spiral welded and longitudinal welded small and large outside diameter products, the company is active in the Energy, Mechanical and Automotive markets. The division was formed from merging ArcelorMittal’s Pipes and Tubes assets with Dofasco Tubular Products in 2007. The Tubular Products division has an annual manufacturing capacity of three million tons and revenues in the range of three billion US$. The management and leadership teams of the Tubular Products division are committed to satisfying the needs of our clients by efficiently providing high-quality, highperformance products in increasingly complex operating environments. Our goal is to become one of the leading world players on the tubular product market. “Establishing and enhancing operational excellence in all our 26 plants is our first priority,” says Jerome Granboulan, CEO of Tubular Products. Leadership in Tubular, as elsewhere at ArcelorMittal With the announced plans to develop Greenfield sites in Saudi Arabia and Nigeria, we will continue to grow and progress towards our goal to be one of the leaders of this industry. Through operational excellence, knowledge and transfer, we will ensure that the best practices are adopted across the organisation and are demonstrated in our results. Tubular Products has over 12,000 employees worldwide. Thanks to their commitment and to the network of production sites which are closely related to ArcelorMittal’s upstream mills, as well as their relationship with the Research and Development centres, we are well on our way in our journey to being one of the leaders in this industry. ArcelorMittal’s Tubular Products Karviná in the Czech Republic, cycled through Poland, Sweden, Finland, Estonia, Latvia and Lithuania - an impressive 32 boldnewsfromsegments We aim at operating in a people and environment friendly way.” Sanjay Samaddar, Chairman of the Board of Directors, ArcelorMittal Ostrava News from Long Carbon Europe Zenica restarts its blast furnace after 17 years The restart of the integrated route in Zenica marks a major milestone in the development of Bosnia’s steel industry. This 135 million US$ (83 million €) project – which is called Fenix after the mythical bird that was reborn from the ashes – brings Zenica’s total installed capacity of liquid steel to about 1.9 million tons. The cost of electricity and the lack of scrap were key in the decision to rebuild the seriously damaged integrated route in Zenica 17 years after the war in the Balkans halted production. When ArcelorMittal took over the Zenica plant in late 2004, the integrated route was in a state of total disrepair. After first studies in 2006, reconstruction started in the second quarter of 2007. The refurbishment concerned all areas of the plant. April 2008 marked the start-up of the coke plant and two sintering installations. The blast furnace was commissioned on June 30th, and the first heat was tapped on July 1st at 12:45pm! Once fully operational, the integrated route has an annual production capacity of about one million tonnes. Ore requirements will largely be covered by ArcelorMittal’s captive mines in Bosnia, while coking coal is imported. A difficult and challenging road… that leads to opportunity MK Srinivasan, CEO of the plant, comments: “Local employees consider this project an excellent opportunity for their country. It has been a difficult and challenging road. But, as we mark the formal restart of integrated production, we are celebrating the beginning of a new and exciting journey – one which will see high-quality steel from Zenica once again serving the growing needs of expanding markets throughout Bosnia and Herzegovina and the whole of South East Europe.” Ostrava invests in environmental protection At the end of June 2008, ArcelorMittal’s Investment Allocation Committee (IAC) gave the green light to the investment in the de-dusting of Ostrava’s sinter plants. Sanjay Samaddar, Chairman of the Board of Directors of ArcelorMittal Ostrava, tells us how his company is going to take up the environmental challenge. Q: Environmental protection has been a sensitive topic at Ostrava for a long time. What does your action plan foresee? SS: “Of the investments dedicated to the modernisation of our installations, we intend to spend 25% on environmental protection. Our action plan includes investing in new technologies for the desulphurisation of the power plant and the de-dusting equipment of our two sinter plants. “ We are celebrating the beginning of a new and exciting journey – one which will see high-quality steel from Zenica once again serving the needs of expanding markets.” MK Srinivasan, Zenica CEO 4,750km to and from the Swedish town Juokneski, situated on the border of the northern polar circle… Four ArcelorMittal researchers from 70 % 33 The sinter plants’ de-dusting will decrease emissions by 70%. Completion of the Madrid project will de-bottleneck downstream activities, increase production by 9% and reduce cost of maintenance in this area of the plant by up to 90%. Maintenance and production down-times will both decrease by up to 85%. Q: How have you proceeded to define your objectives? SS: We have involved independent experts from Ostrava’s Technical University in selecting the most suitable technical solution with respect to environment protection. They assessed the programmes we suggested and compared these with the most up-todate technologies in the steel industry all over the world. By giving access to our investment plans – including state-of-theart technologies – to independent local experts, we wanted to prove our commitment to the region both as entrepreneurs and as local citizens. > MK Srinivasan and Sanjay Samaddar Q: What improvements do these investments bring? SS: Their effect will be substantial. The sinter plants’ de-dusting will decrease dust emissions by 70% compared to the current situation. The improved filtering system of our steel plant will further decrease dust emissions. The power plant desulphurisation will result in a 50% reduction of sulphur oxide releases. Madrid: de-bottlenecking increases capacity and cuts costs Our environmental investments will definitely have a positive impact on the whole region. These two projects are the first big steps towards our goal to reduce our environmental footprint to the level of our best performing plants.” Completion of the project will de-bottleneck downstream activities, increase production by 9% and reduce cost of maintenance in this area of the plant by up to 90%. Maintenance and production down-times will both decrease by up to 85%. Finally, product quality will improve through reduction of defective products. The new installations are expected to go into operation in the fourth quarter of 2009. The 16 million € investment at the Madrid plant comprises a new cooling bed for the rolling mill in order to produce beams up to 24 metres long. An additional stacker for the packaging of longer beams will be installed, as well. All works will be performed without shut-down. Montataire, France, participated in 2008’s Roller in Le Mans, France, skating on their rollerblades non-stop for 24 hours… Mario Müller 34 boldsafety All 320,000 of us (440,000 including contractors) can – and must – do everything within our power to improve our Group’s current Health and Safety performance. John Macnamara and Robert Kanz tell us how ‘Journey to Zero’ is being implemented across our Group to directly address this challenge. Our Journey to Zero begins! > John Macnamara, VP Health and Safety How will ‘Journey to Zero’ help us improve? ‘Journey to Zero’ will be a common language used to drive ArcelorMittal’s continual H&S improvement and to develop common leadership actions to deliver performance excellence. It will leverage learning and share best practices across our entire organisation and engage people at all levels to identify high impact improvement priorities, helping us to ‘live’ our H&S values. ‘Journey to Zero’ starts now! The sooner we begin this Journey, the quicker we can reduce incidents and improve our H&S performance. The process starts at the top and will be led by a senior site leader – CEO/COO. In every site/location, a ‘Talent’ will be selected as project leader. Improvement initiatives will also be rapidly developed so as to become part of local H&S business plans for 2009. We aim to focus on preventive operational activities, improving standards through effective implementation of good and best practices including hazard identification and risk analysis; accident/incident investigation; critical task analysis; indicators follow-up; system review; communication process; shop floor audits; colleague care… and much more. This will be part of a complete Safety Management System (SMS), underlying actions that are shop floor oriented and event analysis driven. Each single H&S business plan on site can refer to the SMS to devise key initiatives with reference to their own culture, their past results, their history and motivational capabilities. “Because ArcelorMittal is a wide Group,” says John Macnamara, VP Health and Safety, “we will be able to exchange best practices through all operational activities done under the scope of ‘Journey to Zero’. Being bold means sharing the best we have around the sites.” What do we all have to do? We have to learn from the good examples already being realised throughout our Group and praise and recognise the improvements being made. Four mini presentations are available on the ArcelorMittal website. All demonstrate the sort of good practices to which we should pay attention. “We are trying to provide a unifying approach, one of continuous improvement,” says John. “This will not be possible without Leadership on the shop floor. We need to identify ways to improve. The best initiatives are those that deliver the greatest impact with the least effort. We want more emphasis on the health aspect, which we have not been giving enough visibility to until now. Our main focus is on major injuries. Yet, we should also be including in our messages preventative health measures, recognising such things as back pain, carpal tunnel syndrome, fatigue, stress etc. These are all issues that should be addressed.” Paying more attention to – health! Dr Robert Kanz, PhD, Health Manager, describes the development of the H&S Committee’s integrated strategy and action plan. “At the moment, we have the WEF (World Economic Forum) definition of two worlds: developed and developing. Because of the global reach of our Group, our new Health Committee has to develop initiatives to respond to the needs of these two worlds.” For example, in places like the USA and Canada, there might be more emphasis on screening for things like cancer. In the developed world our Group can employ more of a ‘top down’ approach. “The Committee will create initiatives, such as a Health Manual and, most importantly, establish our standards.” But, we must keep in mind that programmes such as ‘Fit for Life’ or ‘Health at the Workplace’ are difficult to transpose to all places, as locations may require various investments in the basics of occupational health. This is why our Global H&S Committee has continental representation (one person each for Canada, USA, Asia, Africa and Europe). The initiatives must meet the needs of specific regions. Localised master plans One mandate that Corporate H&S has is the implementation of master plans, which involve a more ‘bottom up’ approach, meaning direct help for the operations. It is not unusual for a master plan to take up to three years to develop; involving analysis and resulting in the development of an action plan. from Mtrac, an ArcelorMittal contractor, demonstrated his commitment to safety and performance, achieving an impressive 4th place in the 23rd 35 Following the Global Health and Safety Committee meeting in East Chicago in June 2008, new Global H&S standards have been refined and finalised. Nine standards are now available at www.myarcelormittal.com. These include the new – and very critical – global standards for contractors; vehicles and driving; cranes and lifting; as well as the Alert Procedure.” > Dr Robert Kanz, PhD, Health Manager Ten ways the Health Committee will contribute: This process can be quite complex, especially in places like Kazakhstan where there are mining and steel operations and where 50,000 employees are affected. But assistance will be available, as Robert explains: “We can offer advice, help to create Health and Safety action plans, provide training and assist with the technical aspects of knowledge transfer. The key is for the Health team to be active in projects, not just sitting in our offices with theoretical ideas. We need to go places and build up practical help.” Robert offers a case study where this kind of call to action is being applied. In Kazakhstan, “CEO Frank Pannier is now at the helm, and has taken a very pragmatic approach to improving health and hygiene. There is a directive, a Medical Doctor, Alexander Kustnjazev, and a consulting group that have helped develop a local plan.” Sharing of solutions Lessons learned in one country can be useful company-wide. In Kazakhstan, for example, a mobile health unit was established. Robert explains: “By creating a modular building that we can put on rails, we can do lung/eye testing and lab testing. This solution is eco-efficient, mobile and works to very high standards. The mobile unit can cover all of the mines in the Karaganda region, which spread across 1,000 kilometres. Satellite technology can be used for diagnostics, for example x-rays can be digitally transferred to hospitals far away for expert diagnoses.” Once established, such a solution can be used in other regions. Analysis of health status and main illness causes Analysis of hygiene status Definition of Group health programmes contributing to ‘Journey to Zero’ Definition of an adequate reporting and metrics system, introducing leading indicators and allowing performance measurements Definition of advanced environmental health and hygiene concepts Definition of health and hygiene strategies Definition of main group health and hygiene standards and recommendations Definition of a best practices portfolio Definition of a health REX system Initiation and follow-up of pilot and master plan projects A call to action The H&S team is working hard to achieve results, but they cannot do it without every member of the ArcelorMittal team’s 100% commitment. Across our Group, we all have to live our H&S values. We all have to improve our work environment – whether we work in an office or on the shop floor. Together, we will make this Journey a success. Find the complete ‘Journey to Zero’ at www.myarcelormittal.com Download the safety standards at the H&S Portal on www.myarcelormittal.com international ADAC Truck Grand Prix at the Nürburgring racetrack, Germany… In Zenica, Bosnia and Herzegovina, our Group is supporting a 36 boldstatistics In a new series of articles, boldspirit will be reporting on various aspects of our fascinating steelmaking and mining processes. In this issue, we focus on the blast furnace, a critical facility for ArcelorMittal. Celebrating our steel giants: blast furnaces! In some ways you could say that the blast furnace is the old workhorse of the steel industry. Typically, they are in operation 24 hours a day and seven days a week, and they have been around a long time; the first blast furnaces appeared in the 14th Century. Although modernisation and new technology are vastly improving the performance, reliability, cost effectiveness and environmental impact of these stalwarts of steelmaking, the basics of the blast furnace process remain practically the same. The steelmaking process: the blast furnace! The blast furnace is where the iron is extracted from the iron ore. MEPS (independent steel analysts) forecasted in February 2008 that: “Blast furnace ironmaking in 2008 will top 1,000 million tonnes - 6% up on our anticipated figure of around 946 million tonnes in 2007. This represents a gain of 8% over the 2006 outturn.” The heat created by the combustion melts the iron and gangue (aggregates of minerals in an ore) into a liquid. The gangue, being lighter, floats to the surface of the molten iron, known as ‘pig iron’. Yet even with these seemingly staggering production figures, improving the reliability, consistency and efficiency of blast furnace operations is of critical importance to the steel industry and thus to ArcelorMittal. To exchange and share best practices, ArcelorMittal’s Blast Furnace operations managers came together at the end of April 2008 in Vitória, Brazil, for their global Knowledge Management Programme (KMP) event. The events are part of the KMP, which aims to foster a continual exchange between managers of similar operations across the Group, a platform for support from the peer group, as well as being the source of improvement initiatives. Solid ore and coke are fed into the furnace from the top, while a stream of very hot air (1,200°C) from the bottom causes the combustion of the coke, with its virtually pure carbon content. This produces carbon oxide, which ‘reduces’ the iron oxide by removing oxygen, separating the iron. Slag, which is the residue created by the molten gangue, can be used in other industrial applications, for example for road construction or cement production. “ Blast furnace ironmaking in 2008 will top 1,000 million tonnes - 6% up on our anticipated figure of around 946 million tonnes in 2007. This represents a gain of 8% over the 2006 outturn.” MEPS Forecast school for children with special needs, helping replace the minivan that takes students to and from school… ArcelorMittal Etxebarri, Spain, boldsteelmaking 4 mn 37 The new annual production record, in tonnes, achieved by Indiana Harbor Blast Furnace Number 7. Did you know… (some of the many ArcelorMittal blast furnace facts) 17 years after the war in the Balkans halted production, Bosnia’s biggest steelmaker, ArcelorMittal Zenica, re-lit its blast furnace in July. This historic event represents part of a 135 million US$ (83 million €) project to restart integral production in a 2008 project, baptised Fenix after the mythical bird that rises from the ashes. In 2007, major investments were sanctioned to tackle emissions. These included a 100 million US$ investment in a blast furnace at the Kryviy Rih, Ukraine, plant including dust collection and treatment facilities. Every blast furnace needs to be relined periodically; typically every 15-20 years. In July 2008, ArcelorMittal South Africa’s Newcastle Works successfully completed the reline of its blast furnace and sinter plant. In November 2007, the GMB approved the reline project of Blast Furnace Number 3 at ArcelorMittal Bremen (to be completed by the end of 2008) and an investment of 63.8 million € was allocated. The move will secure hundreds of jobs at the mill. Flat Carbon Americas has 15 blast furnaces, Flat Carbon Europe has 24, Long Carbon Europe and Americas have 11, AACIS has 16 and Stainless has two.* The two blast furnaces at ArcelorMittal’s site at Esch-sur-Alzette, Luxembourg have been declared a UNESCO World Heritage Site. ArcelorMittal Ostrava’s plant has four blast furnaces. Currently this plant operates In 2007, Indiana Harbor Blast Furnace Number three blast furnaces with an annual capacity 7, the largest in North America, achieved a new of more than three million tons of hot metal. annual production record of four million tonnes. Today, technical achievements in the In August 2008, ArcelorMittal announced blast furnace route in Europe mean that many that it would increase its long carbon steel European sites generate CO2 emissions close production capacity in Brazil. The new to the theoretical minimum for steelmaking. investment programme will consist of the Further reductions will come from developing construction of two new blast furnaces, with a recycling or from technology advances. total capacity of 400,000 tons per year. A substantial expansion of ArcelorMittal ArcelorMittal has 68 blast furnaces, with a capacity of 108.4 millions of tonnes per year and a production in 2007 of 82.5 in millions of tonnes.* In 2007, two new charcoal blast furnaces were successfully brought into production at Juiz de Fora in Brazil. *According to our 2007 Fact Book Tubarão was commissioned in July 2007, adding an additional 2.5 million tonnes of annual slab capacity. One of the components of this expansion was the addition of a third blast furnace. The Seraing (Liège, Belgium) Blast Furnace Number 6 – idle since 2004 – was restarted at the end of February 2008. hosted a group of French students as part of the EU sponsored Leonardo Project, teaching them about the importance of Occupational Safety… 38 boldbusiness Maintaining our leading position means continuously delivering good results. H108 results are in – and they are strong. By building on our Company’s strength and diversity we will continue the upward trend. Using diversity and strength to deliver strong results In part, the results reflect the diversity and strength of the ArcelorMittal business model, as well as the continued sustainability of the steel industry in general, and this in spite of challenging market conditions. Even the experts were surprised Quarter after quarter, ArcelorMittal has continually delivered good results. How, then, could anyone be surprised when this financial year’s three and six month period results were again, strong? Given the relatively sombre economic conditions worldwide, stock market and industry analysts have generally been revising their expectations downward. So when the results were announced on July 30 2008, analysts agreed that such a good outcome was beyond even their most optimistic expectations. A testimony to our ArcelorMittal business model H108 highlights include a 31% increase in sales to 67.6 billion US$ as compared to H107, and a 65% increase in net income to 8.0 billion US$, also as compared to H107. Q208 highlights include a sales figure of 37.8 billion US$, up 39% as compared to Q207, and a net income result of 5.8 billion US$, up an astonishing 114% as compared to Q207. Commenting, Lakshmi Mittal, Chairman and CEO, said: “We are pleased to report results for the first half of 2008, with EBITDA of 13.1 billion US$, up 35% over the same period in 2007. This reflects the diversity and strength of the ArcelorMittal business model, in particular the significant diversification of our value chain including our considerable mining operations. We continue to look for opportunities to further enhance our raw material self-sufficiency, with recent investments being announced in Africa, the Americas and Australia. Our financial strength enables us to continue to invest heavily in the development of the business, particularly relating to Brownfield growth and improving product quality and mix. This year we expect capital expenditures to reach seven billion US$, representing 36% of 2007’s EBITDA.” Diversity and strength What do these figures reflect? In part, they reflect the diversity and strength of the ArcelorMittal business model, as well as the continued sustainability of the steel industry in general, and this in spite of challenging market conditions, such as rising raw material costs. In this area we are particularly assisted by our increasing self-sufficiency in key raw materials, for example in iron ore and coal. Further increases in raw material self-sufficiency will remain a priority for the Company going forward. Want to know more about our first and second quarter 2008 results? Go to the ‘Results Q&A’ for ArcelorMittal employees at www.myarcelormittal.com boldbusiness highlights 17/09/2008 ArcelorMittal announces new management gains targets of four billion US$ 03/09/2008 ArcelorMittal and Kalagadi Manganese announce the unconditional participation of ArcelorMittal in Kalagadi Manganese 20/08/2008 ArcelorMittal acquires Brazilian iron ore miner London Mining Brasil and acquires Brazilian port facility through partnership with Adriana Resources Inc 13/08/2008 Valin and ArcelorMittal sign electrical steel JV agreement 04/08/2008 ArcelorMittal announces a 600 million US$ investment in Mexico The Environmental Education Center of ArcelorMittal’s stainless business in Brazil held a ‘Playing, Doing and Learning’ environmental boldfocus 39 Did you know that Temirtau means ‘Iron Mountain’ in Kazakh? Quite an iron-ic name for a place with such a long and proud history in the steel industry? One day at the site of… ArcelorMittal Temirtau, Kazakhstan ArcelorMittal Temirtau’s product range of flat steel products includes pig iron, continuous caster slabs, hot and cold rolled coils and sheets, black plates, covers, tin plates, hot-dipped galvanised products, colour coated products and welded pipes. Situated in North East Kazakhstan on the Nura River, Temirtau is an industrial centre, dominated by the largest metallurgical plant in Kazakhstan, ArcelorMittal Temirtau, which, as of July 2008, has 20,473 employees. The metallurgical plant has an annual capacity of 5.5m tonnes. The sprawling plant includes: •Coke ovens – seven batteries (one idle) total annual productivity – 3,500 kT; •Sinter plant – Line No 1: commissioned 1963 (idle), Line No 2: 1975, 3-strand 312 sq metres each (7,300 kT); •Blast furnaces – four pcs (one idle – 1,719 cu metres), one 2,035 cu metres, one 2,700 cu metres and one 3,200 cu metres (4,300 kT); •Steelmaking plant – three 300-tonne basic oxygen converters (4,610 kT); •Continuous casting machines – two 2-strand VAI slab (5m tonnes); •Rolling mills – one 1,700mm wide hot strip/sheet with five roughing and seven finishing stands (4.2m tonnes), cold reversing – one 5-stand tandem (1,700mm) (1.4m tonnes), one 6-stand (800,000 tonnes) and one 1-stand 4-high reversing mill for special grade steel, tube and pipe mills; •Three electrolytic tinning (375,000 tonnes combined), one hot-dip galvanising and zinc-aluminium galvanising, one colour coating, one bar mill. But ArcelorMittal extends its presence across the region. This includes four coal mines, employing 23,317 people, iron ore mines, employing 3,414 people and a Pipes and Tubes plant in Aktau. It also employs 535 people in ‘Okzhetpes’ (public utilities supplier – located in Temirtau), 334 people in ‘Nerli as’ (public catering – located in Temirtau), 117 people in ‘Karvol’ (pipe shop in Temirtau) and three people in the power networks. education programme for students on school break at Oikós, a United Nations Biosphere Reserve… The International Iron and Steel Institute 40 boldcommunications boldfocus Our values are no different than the Group as a whole. Our vision is no different. We also want to be the most admired employees. We are in this country to last.” Frank Pannier, CEO ArcelorMittal Temirtau Deep steel routes that start at the top! Located at the centre of Eurasia, Kazakhstan is a crossroads of the world’s oldest civilizations and trade routes. In some ways, the city of Temirtau is a microcosm of the country (and also ArcelorMittal). With a population of approximately 170,000 there are more than 100 nationalities. What is really special about Kazakhstan is the people: the pride they take in their work and their connection to the steel industry and their mining activities. Children’s Camp In summer, Kazakhstan has a brief and intensely hot summer. ArcelorMittal has three children’s camps in Temirtau, situated on a man made lake that acts as the focal point for the city. 500 children, ages 6-14, can attend. Specialist camp counsellors are brought in and the children enjoy a lively series of activities. The children in Temirtau work hard at school and at extra curricular activities, so in the summer they earn a well deserved break that is full of pure fun. The President of the Republic of Kazakhstan, Nursultan Nazarbayev, graduated in 1967 from the Highest Technical Educational Institution at the Karaganda Metallurgic Works. His steel roots run deep. In fact, he started his steel career at the Temirtau plant where he was very active in the youth organisation. He became the leader of this organisation, which was also the start of his political career. A keen supporter of sports, his presence is everywhere and the people look up to him and the efforts he is making towards Kazakhstan’s future. There is also an ArcelorMittal sponsored Children’s Arts Centre where children from ages 6-18 may come, outside of school hours. Here they produce work of a very high quality and offer their services to a surprisingly large number of children. As the only centre where children can come for free in the region, it is very popular in the Republic for its output. Director Olga Kislichenko shines with enthusiasm about her undertaking (see ‘boldpeople’ page 46). Football stadium In 1972, a football stadium was built in Temirtau. After the Soviet collapse, the stadium fell to neglect. It was recently reopened by President Nazarbayev and Mr Mittal, our Chairman and CEO, on July 1 2008 after an investment by ArcelorMittal of seven million € in renovations. The stadium, which has a 15,000 person capacity, can host various sports including track and field but is mainly for football. On July 19 the stadium was used to celebrate National Metallurgist’s Day where Mr Mittal was also in attendance. Corporate Responsibility: Social Projects in Kazakhstan Temirtau Sports Complex In Kazakhstan there are 9-12 months of hard winter. It is very important that children have an indoor place to play and train. Three years ago the sports complex was newly built with a six million US$ investment by ArcelorMittal. Open to ArcelorMittal employees, their families and the city’s inhabitants, the complex offers modern facilities for a wide range of sports. The centre is open during the day and the evening and is fully occupied all of the time. There is a boxing ring and Judo/Karate facilities, a basketball court and a fully equipped gymnasium. reports that world crude steel production was 696mmt in the first half of 2008, a 5.7% increase over the same period in 2007… On July 24 41 In 1984, a new residential area in Temirtau was created called, ‘Zenica’. It was named so in honour of Zenica, Temirtau’s twin-town in Bosnia and Herzegovina. For those of you who know your ArcelorMittal geography, we also have a site in Zenica (see page 37). Perhaps the sites should be twinned as well? Kazakh Cultural Centre, Temirtau Invited by Bakhytzhan Abilseitova, the gracious Director of the Cultural Centre, we were treated to performances by some of the students, all of whom were remarkably talented and had such composure! This centre accepts only Kazakh native children to preserve the national culture although it also teaches dance and music (instruments, singing) of other ethnic origins (Russian, Indian…). Karaganda Metallurgical Institute 1963 – the Karaganda Polytechnic Institute (now) was founded as a Higher Technical Educational Institution attached to the Karaganda Steel Mill. It is now sponsored by ArcelorMittal and is a fairly modern facility by local standards. Students are given training specific to Metallurgy and their jobs, such as Health and Safety, accounting, etc., based on their contracts. Thus, one student interviewed signed a five-year contract with ArcelorMittal Temirtau and obtains free schooling at the University. Dmitriy Cherepov is the Director of Kostenko mine in Karaganda, the oldest mine in Karaganda. Proudly showing us around the mine, he said that: “Today the mine produces 8,000 tons of coal per day. This includes coking coal for metallurgical blast furnaces and energy coal for Temirtau’s power plant.” The respect that the community has for the miners is clearly evident. “Mining is very hard work. We want our miners to be healthy, which is why we have ten saunas and a swimming pool.” One of the amazing things about the mine is that everything has been created by the miners! The miners did the floor work, the walls and the ceilings. Miners paint the buildings and plant the flowers. Miners made the huge mural in the pool area and the pool itself! Families are invited to use the pool. The children come for free with free transportation. “Our Company does a lot of things,” Dmitriy says, “not only for workers but also for other people. Some examples are the fountains which adorn our city and sports facilities. In every suburb of our city, we build facilities for children to play.” ArcelorMittal has also given money towards the infrastructure of the University being built in Astana but this sponsorship will be limited ‘transforming tomorrow’ takes in scope to the construction. time and effort CEO Frank Pannier was formerly ArcelorMittal Mining CEO in Ukraine. He brings invaluable The ArcelorMittal Group is working with experience to our activities in Kazakhstan the government of Kazakhstan on and says that good communication exists a programme of investments to improve between Kazakhstan and Ukraine. and further modernise the mines. To this end, an investment programme for 2008-2012 Frank also says that ArcelorMittal inherited is planned. Starting with the improvement a certain infrastructure when they acquired of the gas monitoring system, this substantial the various locations in the Karaganda Region investment in Health and Safety will ensure a and there is work to be done: “We are trying safer working environment for all employees. to improve that infrastructure but it will take time. Our values are no different than the Group as a whole,” he says. “Our vision is no different. We also want to be the most admired employees. We are in this country to last.” “ ‘transforming tomorrow’ here in Kazakhstan is most evident when you look at all that is available for children.” M. Rajendran, Director Corporate & Social Responsibility colleagues from our London office joined 13,000 runners and walkers from 308 different companies in the JP Morgan Corporate 42 boldmedia Do you have a news item that you think deserves to be shared with the rest of your ArcelorMittal colleagues? Tell us about it at: [email protected] ” ArcelorMittal ‘in the news’ scans the headlines to bring you the corporate news from the public press, headlines from across the ArcelorMittal globe, ArcelorMittal milestones, and ‘cool’ innovations, both in our corporate culture and in the world of steel. ArcelorMittal in the news Brand Book –‘This is us’ Launched at the Leadership Conference in New Delhi, ‘This is us’ is a compilation of inspiring stories, featuring ArcelorMittal employees whose values resonate with our three values of Sustainability, Quality and Leadership. Designed by FutureBrand, the book brings the brand to life and portrays the human face of a company that is full of personalities, skills and talents. Currently, ‘This is us’ has been produced in limited quantity and will be strategically distributed as it is a high-end publication. Soon however, it will be made available as a PDF on our intranet. We are visionary thinkers... ...creating opportunities every day. This entrepreneurial spirit brought us to the forefront of the steel industry. Now, we are moving beyond what the world expects of steel. The book focuses on individuals who, through their bold actions, have shown that the brand is real and not just empty words. The stories are of past, present and future endeavours; all stories that have or will make a difference. A true team effort, the stories in the book were collected via the internal communications network, our brand champions, through the GMB and CEOs of segments and units, from operation managers in steel plants, ports, mining and hot rolls, from boldspirit and finally through contributed articles on www.myarcelormittal.com. ArcelorMittal University wins Optimas Award 2008 Even though ArcelorMittal is the world’s largest steel company, less than 15% of our 320,000 employees speak the official corporate language – English. ArcelorMittal worked with GlobalEnglish, a company that specialises in online English-language learning programmes, to implement a company-wide English-learning initiative. So far, more than 5,000 employees have participated, with 500 new users added each month, opening avenues for employee global mobility and increasing productivity, thus saving our company more than 8.6 million US$ annually. The official opening of the first phase of the ArcelorMittal University Campus and the Exhibition Centre occurs at the end of 2008. Leadership www.arcelormittal.com It will be the subject of a major feature in the next issue of boldspirit. The University, which will help us to realise the power of our human energy and which represents a critical element in our Journey to Leadership, is intended to serve all ArcelorMittal people at all levels. ArcelorMittal announces new management gains targets of four billion US$ ArcelorMittal announced a new ‘Management Gains’ plan that will target four billion US$ of cost savings over the next five years. This plan will focus on increasing employee productivity, reducing energy consumption and decreasing input costs to achieve a higher yield and improved product quality. New brand posters – speaking the same language Four new posters illustrating each of our brand values as well as our brand promise of ‘transforming tomorrow’ have been made available for global use in presentations and displays. Putting our values into pictures, these posters provide you with a wider variety of quality illustrations. The use of consistent images helps us to strengthen our global brand and values to employees, visitors and investors worldwide. The images can be downloaded directly from the brand identity site and translated for use across the ArcelorMittal globe. For more information, contact your local brand champion or Zainab Tankiwala, Branding Analyst, Corporate Communications [email protected] Chase Challenge to benefit Sports Aid’s Talented Athlete Sponsorship Scheme, which provides sponsorship and coaching for aspiring 4 bn ArcelorMittal announced a new ‘Management Gains’ plan that will target 4 billion US$ of cost savings over the next five years. 2.5 mn Lakshmi Mittal wins Forbes Lifetime Achievement Award Lakshmi Mittal, our Chairman and CEO, was conferred the Forbes Lifetime Achievement Award, the highest recognition of global business success bestowed by the US business magazine for what it calls “a hero of entrepreneurial capitalism”. Mr Mittal received his award on Monday September 8th, at Forbes’ Global CEO Conference 2008, held in Singapore and attended by over 400 business leaders. 43 Employee Share Purchase Plan offers ArcelorMittal employees the possibility of acquiring a total of 2.5 million shares of our Company. For more information contact your local HR department. News in brief Europe ArcelorMittal Warszawa inaugurates new bar rolling mill ArcelorMittal Warszawa, subsidiary of ArcelorMittal Group, inaugurates a new bar rolling mill - one of the most advanced rolling lines in Europe, following an investment of 80 million €. 18/09/08 The Americas Habitat for Humanity – first beneficiaries of housing project ArcelorMittal USA launches environmental website The ArcelorMittal USA Environmental team launches a new website (www.arcelormittal.com/environment/us) to communicate our commitment to protect and improve the environment. The website provides examples of the ways in which we live up to our environmental responsibility. 08/08 Low-income families from Romania, Argentina and Costa Rica are beginning to see the fruits of the partnership between the ArcelorMittal Foundation and NGO Habitat for Humanity, which was signed in April 2008. So far, 12 houses have been partially built in Argentina and Costa Rica, and 54 homes have been renovated in Romania after flood damage. Africa ArcelorMittal, one of the 10 best companies to work for in Brazil According to the 2008 Guia Você S/A, ArcelorMittal Brasil is one of the 10 best companies to work for in Brazil. The Company has been on the list of the 150 best companies since 2005, when it was founded. This year we are ranked the ‘Best Steelmaking Company’. ArcelorMittal Senegal takes part in free health care initiative Within the framework of eight citizen camps held throughout Senegal over the summer, a team of medical specialists offered free medical consultations for the destitute local communities, treating over 2,000 people. 08/08 China ArcelorMittal publishes China Directory 2008 Along with a first issue of boldspirit in Chinese, ArcelorMittal in China published a directory of its offices and activities in China. 09/08 British athletes… With the intention of kindling a spirit of entrepreneurship in school-aged children, Stainless Brazil invests in the Small Business 44 boldspotlight From arranging meetings to organising our leaders’ schedules, Personal Assistants are an essential part of many of our teams. Here, we introduce you to five of the women who keep our offices (and professional lives) running smoothly. PAs of ArcelorMittal > Sabine Rocher Sabine Rocher Sabine has been working for Rémi Boyer, VP, Corporate Responsibility, since November 2006. She loves the diversity of her job. “We do a large amount of different and complementary work. For example, in preparing a journey to the other end of the world, it is not only necessary to think of the flights (and to find the best route possible), but also to prepare the visa requests, to find a hotel, to consider vaccines and treatments on the spot if need be. Basically, it is an exhaustive list, and would not be possible without a contact on the other side. But fortunately, there is always a PA on the spot who is ready to help you. I find that simply brilliant! I am speaking of a true network, a gigantic fabric in which each one of us has our own place. You know that someone will be always there to give you information, to offer help.” Sabine loves to work under pressure, because at these moments she is her most productive. She does say however, that the organisation of the CR KMP in February 2008 was pretty stressful. A second example was when Rémi had to journey to Senegal. “His visa took some time, invaluable time,” she laughs. > Jody Ford > Melissa Teixeira Jody Ford Melissa Teixeira Jody is the Personal Assistant to Jose Viveiros, CEO Mining, and works in our London office. She has been working for Jose for one year. She tells us that the best thing about her job is: “…the variety, and helping organise my boss’s life, both personal and work related.” PAs have to have a range of skills and also be able to absorb a lot of knowledge to really excel at their job. Jody tells us that, “My most stressful moment was during the implementation of the SAP system which is a whole new language and system to master. This job has taught me to be patient and to pre-empt Jose’s needs – for example, visa and travel constraints and scheduling of meetings – all within the ArcelorMittal way of working.” Melissa is fairly new to her role as Personal Assistant to Bernard Fontana, having started working for our Executive Vice President, Human Resources, on July 17 2008. “I am still gaining experience within the role to date, but I can say that it is a very fast moving job which I enjoy. I would say a stressful moment was printing a large amount of documents within a certain time for a meeting – and having access to one printer which is used by a number of colleagues. But none the less, I managed and have since learned a better way of dealing with such deadlines.” Melissa also says that: “It’s good to work in a position which brings you in contact with so many other colleagues across so many offices and to learn many new things at the same time.” Programme, in partnership with the Junior Achievement Association of Minas Gerais… Corporate Knights magazine has named ArcelorMittal 45 There is always a PA on the spot who is ready to help you. I find that simply brilliant! I am speaking of a true network, a gigantic fabric in which each one of us has our own place. You know that someone will be always there to give you information, to offer help.” Sabine Rocher, PA to Rémi Boyer, VP, Corporate Responsibility Su Ong Su has officially been the Personal Assistant to GMB Member Sudhir Maheshwari from August 1 2008. Prior to this period, she did a three-week cover a few months before and in total she has been with the ArcelorMittal Group for a year. She says the best things about her job are: “…getting it right from the big things to the little things and working with a great team of peers. Mainly, I find satisfaction in seeing the day run smoothly for my boss and knowing that my efforts in organising the events paid off.” When asked about her most stressful moment, Su tells us that: “The most stressful point for me was a morning of multi-tasking to tight deadlines. We were speaking to the East who were about to close their business day when we had just started. That, coupled with handling visas which required me to leave my desk, challenged my prioritising skills.” None the less she says that she has already learned plenty from this position. “Keeping calm and smiling will see you through the toughest of days – something I am still learning!” > Laura Bourke Laura Bourke Laura Bourke started working for ArcelorMittal and Davinder Chugh on the same day – January 3 2008. She tells us that: “What I like most about my job is the diversity of the Company and its employees; also the speed at which our Group is growing; the progression is very encouraging.” When asked to tell us about her most stressful moment, she says that it has to be, “Organising visas for Davinder and adhering to each embassy’s requirements and time restrictions.” The job has taught Laura: “To expect the unexpected, as anything can change at the last minute. Preparation is definitely a must in the role of any PA.” Dofasco one of Canada’s Best 50 Corporate Citizens. Ranked 15th, ArcelorMittal Dofasco is the only steelmaker to make it on the 46 boldpeople Here we celebrate the Quality, diversity and drive for Leadership that make ArcelorMittal a global team to be proud of! Because together, it is the communal ambition of our 320,000 people that is going to make our Company one of the most admired companies in the world. ArcelorMittal people Olga Kislichenko: “Representative of the cultural mix of the city.” Olga Kislichenko is the passionate Director of the Children’s Arts Centre (see page 40) in Temirtau, Kazakhstan, which is a project supported by the ArcelorMittal Foundation through ArcelorMittal Temirtau. When Olga first viewed the building that now houses the bustling centre in 1992, it was in a bad state. After much work it has emerged as very popular in the Republic for its output and for being the only centre where children can come for free in the region. Her enthusiasm is contagious. For example, it is hard not to share her pride when she tells how the children were the only representatives from the Karaganda region in the National Festival or that their work (art/dance) has been seen in Ukraine and Bulgaria. “We understand that it is not only an honour, but a big responsibility that we have to the children. Here, our teachers are really dedicated specialists,” she says. Olga would love to see more cultural exchange between the centre’s multinational children and audiences and children in other countries. Proud of her own mixed heritage, she describes herself as “representative of the cultural mix of the city.” > Examples of art from the Children’s Arts Centre “ We understand that it is not only an honour, but a big responsibility that we have to the children. Here, our teachers are really dedicated specialists.” list… The response to the Project Management Future Leaders initiative was overwhelming: over 300 applications were received… Employees 47 “ I realise now that no matter what job you’re in and what difficulties you come across, what matters most is having a strong will.” Elena Solis: thinking differently Our International Mobility Experience has already taken Elena Solis from her home in Ukraine to Germany, Luxembourg, Spain and France. When offered a position in the Leadership Development team in Fos-sur-Mer, she accepted with pleasure. “To accelerate my integration into the everyday life of the plant, the site manager asked me to become a Change Leader for a year, prior to me taking on my HR job,” says Elena. Louabadia Fatiha: “…what matters most is having a strong will” Louabadia Fatiha heads the Extraction team at our Ouenza mine in ArcelorMittal Tébessa. How does it feel to work in a predominantly male field? “When I chose my speciality (mining),” she says, “I knew that I would most likely end up in a ‘male’ profession. I realise now that no matter what job you’re in and what difficulties you come across, what matters most is having a strong will.” Eduardo Cepeda: “The middle of nature” Eduardo Cepeda works as an Exploitation Assistant in ArcelorMittal Mexico’s Las Truchas, an open-air mine from which, according to geological studies, 12 million tonnes of iron ore will be extracted in the coming eight to 12 years. A unionised worker, he also knows what it is like to work in a steel plant, but he prefers the mine! Eduardo says that the morning shift is his favourite. During a normal day, Born in the Ouenza region of Algeria, Loubadia he collaborates with topographers in different says that everybody knows her there, operations to check the configuration of the especially the miners. “When I look into their mine banks, according to the exploitation. eyes, I see respect and pride – they recognise When asked why he prefers the mine, the dangers related to my profession.” Eduardo explains that not only is the mine A mother of three sons, her responsibilities not as hot as the steel plant but, more begin very early in the morning at home, importantly: “Here we are in the middle looking after her husband and children. of nature, surrounded by mountains.” Then it continues at work, on the mine yards. Working in Mexico for the biggest steel “Working for a world-renowned mining and company, and one of the largest producers steel company is very flattering,” she tells us. of iron ore worldwide, he says: “Is something “I believe that our site can feel very proud to be happy about and to feel pride in! Also, of being an integrated part of the Group. there is a reason to be confident, as it means I hope that we will continue to grow within that the risk of losing your job in such a strong the Group.” company is more reduced than in others.” “After five years of Corporate, getting in touch with the production workers, doing shifts with them, discovering their daily and nightly lives, helping them to identify their KPIs (Key Performance Indicators), and coaching them on running the five minute post-shift review were all new to me. I’ve learned to think differently: things which might seem so obvious to people who work in an office, turn out to be so different on the shop floor!” The second wave of Elena’s project took place in the hot strip mill. Fos-sur-Mer, as with many other industrial sites, is currently facing a significant wave of retirement of its most experienced workers. This has resulted in a skills gap for many companies. She says that: “It’s vital to accelerate the transfer of knowledge, otherwise tomorrow, the lack of operational competence will become critical. Together with my colleagues we developed an approach to dealing with this problem in the coiler area of the hot strip mill. Now, the idea is being implemented across the whole site and was even presented to the GMB. We are all very proud of this achievement!” Elena concludes. of ArcelorMittal USA’s Coatesville and Conshohocken facilities saw the results of their work first-hand when the US military’s 48 boldpeople No matter who they are or where they live, ArcelorMittal people have one thing in common: a bold desire to do a little bit more, take up a challenge, volunteer in their spare time or move across the world in order to gain from the experience. Jean-Louis Paron: Boxing against violence From July 3-12 2008, Jean-Louis travelled to the Far East to spread the message of peace to hundreds of children affected by the Israeli-Palestinian conflict. Travelling across the Palestinian territory, he organised educational boxing sessions, teaching children of all ages the basics and helping them to forget their reality for a while. In this symbolic initiative, he was supported by our own ArcelorMittal Group, the French Work Gymnastics and Sports Federation, the French Foreign Ministry and the Palestinian Olympic Committee, among others. Osvaldo Brunetta and Guy Kappler: Living legends of the Luxembourg headquarters If you are among the lucky ones who have ever eaten lunch at the Casino, ArcelorMittal’s corporate restaurant in Luxembourg, these two faces will be familiar to you. Osvaldo Brunetta (left in the picture) and Guy Kappler (right) started working at the Luxembourg headquarters in the early 70s. “When I joined the Company I was so young that I did not yet shave,” Osvaldo explains. When they joined, both were custodial assistants. Now, since the inauguration of the new Pétrusse building in January this year, they are among the most famous and smiling colleagues of the 4th and 5th floors, where they make sure that the post arrives timely to all employees and where they take care of other general services. Before moving to Pétrusse, they were at the Casino for several decades. There, they served eight company presidents, industrial leaders such as Gianni Agnelli and figures of the international political scene such as Bill Clinton, François Mitterrand and King Juan Carlos from Spain. Of their years at the corporate restaurant, they note how things have changed: “Years ago people took their time to have lunch, now they eat in 40 minutes,” Guy explains. They have spent their complete professional life working in the Group, and both agree: this is the first and last stop of their career. “We went to Hebron, Naplouse, Tulkarem and Jenine,” says Jean-Louis. “Schoolboys and girls participated as well as young club boxers. It was simply amazing. My greatest pleasure is to share my passion for boxing.” Carlos Santilli: The story of a new life Can someone be born twice? For Carlos Santilli, who has been working for 29 years at the warehouse at our site in Villa Constitución, Argentina, the answer is ‘yes’. During the five last years, due to kidney problems, Carlos had to have dialysis treatments three times a week. At the medical centre he saw that most of the people who were in his same situation had lost their jobs or had retired. “However, my colleagues have always supported me,” Carlos explains. “I didn’t want to retire because I still feel young and want to keep on working.” Things changed for the better in December 2007 when Carlos found out he would receive a transplant. Less than 12 hours after the operation, the kidney started to work. Three months later, Carlos was back at the warehouse. “I was so much looking forward to that day, I was happy to come back, this is my place,” Carlos said. “I have started a new life and every minute I feel thankful to all these people who helped me pull through.” new Mine Resistant Ambush Protected (MRAP) truck, built with ArcelorMittal armour plate, was displayed at their plant sites… 17 49 Do you know a bold person? Email us at [email protected] “ Although I thoroughly enjoyed all the challenges encountered during my two years in this position, I always worked and aspired towards a career in Public Relations and/or Communications.” Hendie Grobbelaar: “No matter how steep the hills are in my job, I never look back!” When we asked Hendie to participate in this feature, she said that it felt odd, because she is used to being the one who normally focuses on other people’s information needs. “However,” she added, “if this inspires some secretary somewhere to grow and move out of her/his comfort zone – why not?” Hendie started her ArcelorMittal South Africa career in 2002 as the secretary to the General Manager of Newcastle Works. “Although I thoroughly enjoyed all the challenges encountered during my two years in this position,” she says, “I always worked and aspired towards a career in Public Relations and/or Communications.” A dramatic change in her personal life led Hendie to move to the Vanderbijlpark Works site where she first worked as an assistant in the newly established Shared Service Centre. After a year, she was promoted to Executive Assistant to the CEO of ArcelorMittal South Africa who was, at that time, Davinder Chugh. assisted me in joining the Vanderbijlpark Works top management team in June 2007 as Communication Consultant. Changing careers at a relatively late stage in my working life is a daunting experience but highly rewarding. No matter how steep the hills are in my job, I never look back. My philosophy has always been that one needs to move on to new challenges as soon as the chair becomes too comfortable and always consider other people’s point of view as well. Learn as much as you can, whenever you can, from whomever you can, as knowledge equals empowerment and freedom.” “I believe that my experience at a production plant, in a multidiscipline financial department, and the invaluable knowledge gained at the highest corporate level in South Africa, backed by a degree in Public Relations Management, years after the war in the Balkans halted the project, the blast furnace in Zenica, Bosnia and Herzegovina was restarted as part of the Fenix 50 bolddepartments Mining and Steel Greenfield Projects come with a host of opportunities for all stakeholders involved. Engaging in a new and exciting business area in countries such as Algeria, Nigeria, Mozambique, Saudi Arabia, Russia and Egypt requires leadership, stamina and adaptability. Most importantly, perhaps, is a marked team spirit, undoubtedly a feature common to the people we introduce to you here… Mining Greenfields Abdoulaye Niang Chief Geologist and Camp Chief, ArcelorMittal Mining Senegal “The ArcelorMittal Mining Project is the most important project in Senegal. The government and people have very high expectations for it and are watching our progress closely. Our challenge is thus both to manage and meet expectations. The main objective at present is to successfully achieve the exploration works according to the project schedule and to begin mining. The main challenges are to achieve daily and monthly targets for drilling, to ensure safety and to manage the supply chain. Mining, like agriculture, is a basic industry and is essential to meet our everyday requirements. No development is possible without mining. In Senegal, a developing economy, mining has the potential to significantly improve the economy of the country and living standard of the people. The slogan of ArcelorMittal – ‘transforming tomorrow’ – will for sure be a reality in Senegal.” Jose Viveiros ArcelorMittal Vice President, Head of Mining “The primary difference between Steel and Mining Greenfield Projects (GP) is that the former are market and supply-chain driven, while the latter are determined by nature and naturally available resources. As a result, even nowadays we can’t have 100% control over such projects, because ultimately nature will have the last say. Vida Mensah Head of Human Resources, ArcelorMittal Liberia “The main attraction of mining in general is that it is so unique; it brings talents from all walks of life to work together as a team. This is so true in Liberia, where multicultural groups are working together to accomplish our common goals. Mining exerts a tremendous fascination because you need to deal with new frontiers. People who are successful in this business invariably possess a pioneering spirit. As a professional, my main challenge is making sure that I hire and retain talents to grow and meet our Company’s goals. Challenges specific to Liberia are finding qualified individuals for the vacant technical positions and communicating the ways in which the country is slowing progressing after going through many years of civil war.” Fortunately for me, prior to working for ArcelorMittal, I had the opportunity to visit An essential ingredient for people involved Liberia every year since 1998, allowing me in Mining GP is team spirit. Anyone who lacks to see the changes it was constantly going team spirit should never apply for a job in this through. Therefore returning here recently field. Process development skills and creativity as an employee of ArcelorMittal Liberia was are two other essential features. not a big culture shock to me. In spite of the fact that we have not been a mining company before, our Group already has huge mining assets that must be put to optimum use.” project, bringing ArcelorMittal Zenica “back to life”… In June, 80 colleagues from our Belgian sites in Châtelet and Genk completed the 51 A Greenfield Project is a project without any constraint imposed by prior work. There is no need to remodel or demolish an existing structure, yet they bring their own challenges. Steel Greenfields More info... Interested in a career in Greenfield Projects? Contact: [email protected] For complete interviews see the HR portal on www.myarcelormittal.com Frank Haers ArcelorMittal Vice President, Leader Steel Greenfield Projects “The objective of the Group is to start the construction of a new steel plant in a new and mostly unfamiliar location. Consequently, you set up a multi-disciplinary team drawn from all main functions of the Company to check the feasibility and viability of such a project followed by a detailed analysis of various key aspects. At the same time, you need to find the appropriate land, obtain construction and other permits and organise utilities. In short, steel Greenfield Projects are exciting because they are incredibly multi-faceted and operationally challenging. What’s more, they offer mobile employees a fantastic opportunity to align their professional aspirations and ambitions with those of the Company. Greenfield Projects broaden people’s mindsets, enhance their personal maturity and offer them an exceptional career path combined with an attractive remuneration package.” Vincent Cholet Steel Greenfield Project Leader, Saudi Arabia “Unlike a Brownfield Project, which consists of enlarging or revamping existing facilities, a Greenfield Project is one that you start absolutely from scratch. It is therefore critical to establish good relations with the authorities. What is common to Steel Greenfield Projects is that they all support the future growth and development of the Company by capturing existing opportunities in certain countries and by delivering the commissioned steel mill on time and within budget to the fullest satisfaction of the customer. We are a very successful and profitable company and the steel industry is staging a remarkable comeback. The time has come to seize the growth potential inherent to Greenfield Projects. Who knows, thanks to boldness, our secret ingredient, we might start a Greenfield Project on the moon one day?” Stuart Lockey Steel Greenfield Project Leader, Nigeria “With projects like the Longitudinal Submerged Arc Welded (LSAW) pipe mill Greenfield Project in Calabar, Nigeria, it is essential to engage local communities from the outset. Such a complex project requires a detailed and thoughtfully defined project description and careful manpower planning. The environmental impact must be assessed and security and logistical issues have to be considered. Risk assessment and management are particularly important – specifically in countries where we have no experience or involvement. At the end of the day, my job is all about attracting the right people. You could have a state-of-the-art facility, but ultimately, if you don’t have the right people to run a multi-million dollar project, you won’t go very far. What I genuinely like about steel Greenfield projects is that no two days are alike!” first bike race between the two plants… In June 17 people from ArcelorMittal Burbach and ArcelorMittal Essen joined forces in the 5th ‘run 52 boldquiz Throughout this issue, there have been a series of interesting ‘Did you know…’ facts. In this quiz, we test how many of these facts and figures you have picked up while reading boldspirit. If you can answer all the questions correctly, you may win a truly fantastic prize: two business class plane tickets. Did you know…? How much have you learned about our Company? Test yourself to see! By proving you are a master of ArcelorMittal trivia, you may win two long haul, business class tickets, valid on a selection of major airlines*. Send your answers to [email protected] by December 15 2008 for your chance to win! Grab a coffee and boldspirit issue 4 to find out how much you know about ArcelorMittal. Send your answers to [email protected] by December 15 2008 for your chance to win! Info *Sponsored by ArcelorMittal Travel Management. Conditions apply. See myarcelormittal.com for details. 1. W hat percentage of the steel used in the automotive industry is recycled at the end of its life? A.10% B. 25% C.70% D.95% 6. How many million tons of scrap does ArcelorMittal intend to buy back from clients in 2008? A.1 million B. 1.5 million C.2 million D.5 million 2. Blast furnaces are being restarted in which country as part of the Fenix project? A.Bosnia and Herzegovina B. Ukraine C.Macedonia D.Croatia 7. How many tonnes of steel are required to produce an 80 metre wind generator tower? A.174 tonnes B. 186 tonnes C.250 tonnes D.255 tonnes 3. H ow many acres of eucalyptus have been planted in Brazil, helping us to cut emissions related to steel production? A.Around 70,000 B. Around 100,000 C.Around 120,000 D.Around 150,000 8. Which country will have the largest high-speed rail network, with 2,230km of rails, all made by ArcelorMittal? A.Spain B. France C.Germany D.United Kingdom 4. W hat does Temirtau mean in Kazakh? A.‘Steel Plateau’ B. ‘Iron Mountain’ C.‘Strong Heart’ D.‘Bright Light’ 9. How many cars are made out of ArcelorMittal Steel? A.One of two B. One of three C.One of four D.One of five 5. H ow many trees does ArcelorMittal Galati, Romania, aim to plant on its manufacturing site? A.5,000 B. 100,000 C.500,000 D.1,000,000 10. How many people does ArcelorMittal indirectly employ? A.320,000 B. 500,000 C.750,000 D.1,000,000 for firms’ in the city of Siegen, Germany… Send in your local news item for publication in the next issue: [email protected] boldinterview A relaxed moment with… Gulnara T Alekeyeva Get to know the Chief of the Environmental department, ArcelorMittal Temirtau… in ten minutes Have your worked for ArcelorMittal for a long time? Since 1995. I worked in the steel industry a long time ago, left and then returned. What did you do before this? Right from the beginning, I worked in the environmental area. What do you like most about your work? This is a difficult question. It is serious work. However, when you see the positive results of what you do, when you make some positive impact on the ecology of the city in which I was born and that I am living in, it gives you a kind of pleasure. These are not just pretty words I am saying. This is how I really feel. What is the hardest thing about your job? There are many difficulties, and every day brings more of them. First, laws are adopted in accordance with European standards, but the conditions for them to be fully implemented are, unfortunately, not adequate yet. Neither we – the users of natural resources – nor the state itself is ready for full-scale implementation of certain legislative requirements. Secondly, NGOs have become more active recently. But we do not have any experience of dealing and collaborating with them yet. Our European colleagues certainly have more experience in this regard. The NGOs are often not up to speed with matters and, as they do not know the special aspects of technology, they ask us the wrong questions. And as for us, sometimes we are afraid: should we say something or not, not knowing about what information and how much information should be given. What is one thing you don’t like in other people? Secrecy. I really do not like secretive people. And on the other hand, what is one thing that you really admire in people? I admire people who are trying to achieve goals, people who are able to set the right goal and who do everything to achieve it. What do you do in your spare time? At the moment, I have almost none. I spend all my spare time with my husband and our 3-year-old son. The three of us have common interests: we like to go on trips to the countryside, and to catch butterflies for our family collection… Is there one big dream you have, one thing that you would like to do, that you have not yet achieved? When I was a child, I dreamed of being a travel guide. I did not become a travel guide but I still have my dream of travelling. It could be somewhere like the mountains – it does not need to be civilised, Pamir, for example. Or maybe China! It isn’t so much about seeing other places as about feeling them. In terms of your work, what does ‘transforming tomorrow’ mean to you? Transforming the way our people think of themselves. 53