We Recognize Our People

INDEX
Message from Mexico Leadership………......……………………………………………………………..1
Who We Are?....................................…………………………...………………………………………..............2
What We Do?...............................………………………………………………………………….....................6
Investing in Our People.....……………………………………………………………………………….…………9
Making Our Steel Sustainable............……………………………………………………………….…….17
Enriching Our Communities..............................................…………………………………………….23
Transparent Governance.………………………………………………………………………………………29
Message from Mexico Leadership
Establish the basis for future growth
2011 was a fundamental year for our organization, not only globally but
also in our operations in Mexico, as we laid the foundations for growth in
the coming years. The economic outlook for the steel industry worldwide
was not very different from that of 2010, it turned out to be a production
below what was achieved in 2007 and 2008, ArcelorMittal Mexico was no
exception, but we have a steel production slightly higher than the previous
year and a growth about 10% in iron ore production.
We continue betting on the company’s development in the coast of
Michoacan and therefore continue to explore our mines, managing to have
iron ore reserves exceeding 300 million tons, which ensures that our reserves
have at least 18 years of life, resulting in the possibility to remain the major
employer in the region.
These results and others are also very important were possible thanks to the
commitment of our people, who are increasingly more feeling and living our
values of Leadership, Quality and Sustainability as their own and applying
them in day to day life. A clear example of this has been given priority in the
health care and security we all continued to support.
In 2011 we continued our “Journey to Zero”, reinforcing the priority of a
security campaign in all our locations and the results were immediate. We
improved in 42% Frequency Index Lost Time collaborators and contractors,
injury cases dropped almost 20% and continue without any fatalities in our
operations across the country. Gradually, with specific actions each employee
has taken on their own responsibility for their safety and that of his team,
which is a source of pride for me and for the organization globally. Today, our
operation in Lazaro Cardenas, Michoacan, is considered one of the safest in
the company worldwide.
We also emphasized the importance of protecting our health and having a
healthy lifestyle. In 2011 we had for the first time, the Health Fair in which
more than 4,600 people from both our company and the communities where
we operate. With this activity, we gave more impact to Health Walk which
was being done each year.
We demonstrate once again, that our people are the most important asset of
the company and what makes us who we are. In addition to continuously train
them, we include important training and courses to generate change leaders,
to help us be a company more productive, efficient and dynamic, as required
by the international market. Only then, we remain the largest and integrated
steel company in the world.
We reiterate our commitment to our operations in Mexico, investing $166 million
in capital projects to remain the leader in steel production in the country. With
that we grow stronger as the number one employer of the coast of Michoacan
and Michoacan State.
In 2011, we continued with our annual investment program for the improvement
of our environmental performance, investing more than $13 million dollars (over
170 million pesos) in projects to improve emission control, wastewater treatment
and hazardous waste management.
In this year, ArcelorMittal Mexico became the first steelmaker in the country
to obtain certification of its inventory of greenhouse gases under national
regulations, giving compliance with the guidelines established by the new Law on
Climate Change and the Mexico GEI Program. Thus, we get the recognition from
the Ministry of Environment and Natural Resources. In addition, we maintained
our leadership in the industry to achieve clean industry certificates in several of
our operations by the Federal Attorney for Environmental Protection.
The optimal use of our natural resources is part of our operating policies, so we
managed to recycle over 10 million m3 of wastewater, which represents 34% of
total water consumed by ArcelorMittal Mexico.
ArcelorMittal Foundation implemented several programs of corporate
responsibility and sustainability, with a social investment exceeding $800,000
(10 million pesos) based on our four pillars: investing in our people, making our
steel sustainable, contribute to the development of our communities and have a
transparent corporate governance. So, in 2011 we benefited 16,625 people.
With these results and others that are detailed in this report, we can conclude
that 2011 was a challenging year for the organization and for the industry, but
with the hard work of everyone at ArcelorMittal Mexico, we went ahead and set
a solid foundation for the years ahead. In 2012 our goal is to improve existing
indicators and further expand our social programs, thus contributing to the
transformation of our future, industry and the communities where we operate.
Bill Chisholm
CEO
ArcelorMittal Mexico
Who We Are?
We are the world’s number one steel
producer, with operations in 60 countries
and sales in 174, employing over
260,000 people. In 2011, we had global
sales of $93.9 billion USD.
ArcelorMittal is the successor of Mittal
Steel, a business founded in 1976 by Mr.
Lakshmi N. Mittal, President and CEO, after
merging with the Arcelor company in 2006,
headquartered in London, England.
The rapid growth of Mittal Steel since
1989 is the result of a combination of a
successful consolidation strategy, with a
significant number of acquisitions. Some of
its largest acquisitions since the start of its
operations in Trinidad and Tobago in 1980,
are: Siderurgica del Balsas, Lazaro Cardenas
(Mexico) in 1992, Sidbec (Canada) in 1994
and Unimetal (France) in 1999, among
others.
In February of 2002, Arcelor was
founded through the merger of Arbed in
Luxembourg, Aceralia in Spain and Usinor,
located in France. At the time of the merger
with Mittal Steel, Arcelor was the world’s
second largest steel producer. In 2007, the
new company, ArcelorMittal, continued
pursuing a strategy of expansive growth by
acquiring other companies in Brazil, Poland
and Canada primarily; thus, becoming the
world’s largest steel producer.
As a result, we have over 1,400 researchers
and 11 laboratories throughout the world,
to develop the best products to meet the
needs of our customers.
2
In 2011, $306 million
USD were invested in
research and development.
ArcelorMittal is a publicly traded company,
and its stock is traded on the New York,
Amsterdam, Paris, Brussels, Luxembourg,
Barcelona, Bilbao, Madrid and Valencia stock
markets.
We are leaders in all of
the world’s major steel
markets, including the
auto, construction, home
appliance and container
industries.
In 2011, ArcelorMittal
continued with the Project
that will undoubtedly make
history–construction of
ArcelorMittal Orbit, the
114.5-meter high tower,
built for the 2012 London
Olympic Games.
ArcelorMittal
Mexico
In Mexico, our primary operation is located in Lazaro Cardenas,
Michoacan. It was founded as a public company known as
Siderurgica Lazaro Cardenas–Las Truchas (Sicartsa) in 1976. The
company was acquired in its entirety by ArcelorMittal in 2006,
making it the largest steel company in Mexico, with over 900
hectares of property.
In 1992, the Ispat International Company acquired the second part
of the Lazaro Cardenas steel complex-Las Truchas (Sicartsa).
Later in 2005, it merged with other companies, creating the Mittal
Steel consortium. One year later, it bought Sicartsa from Grupo
Villacero, creating the current steel complex.
ArcelorMittal Mexico had sales of $2.8 billion dollars in 2011,
thanks to the hard work and dedication of its more than 6,000
team members in its different locations.
ArcelorMittal is committed with our environment, that
is why we manage in a responsible way; health, safety and
well being of our workers.
We are proud to be the biggest steel producer in Mexico and
America. In 2011, ArcelorMittal produced more than 3 million
900 thousand tons, employing more than 6,000 people.
3
Timeline
ArcelorMittal
1995 - Acquisition
of Karmet, Kazajstan
and Hamburger
Stahlwerke, Germany.
Ispat International Ltd.
and Ispat Shipping
are established in the
United Kingdom.
1976 - Mr. Lakshmi N.
Mittal establishes the
PT Ispat Indo project in
Indonesia.
1992 - Acquisition
of Siderurgica del
Balsas located in
Lazaro Cardenas
Michoacan, Mexico.
1989 - The
company Caribbean
Ispat operates
the Iron and Steel
Company of Trinidad
and Tobago (Iscott).
4
2001 - Acquisition
of Sidex, Romania,
and Annaba, Algeria.
1998 - Acquisition
of Inland Steel,
United States.
1997 – Acquisition
of Thyssen Duisburg,
Germany.
1999 – Acquisition of
de Unimetal, France.
1994 - Acquisition
of Sidbec Canada
Caribbean Ispat
exercises its option
to acquire Iscott.
1976-2011
2002 - Founding
of Arcelor through
the merger of Arbed
(Luxembourg), Aceralia
(Spain) and Usinor
(France).
2004 - Acquisition
of BH Steel in Bosnia,
Balkan Steel in
Macedonia, PHS in
Poland and Iscor in
South Africa.
Ispat International NV
acquires LNM Holdings
and merges with
International Steel
Group, creating Mittal
Steel.
Acquisition of
Companhia
Siderurgica, Brazil.
2003 - Acquisition
of Nova Hut in the
Czech Republic.
2006 - Acquisition of ISG in the
United States, Kryvorizhstal in
Ukraine, Hunan Valin Steel in China
and three subsidiaries of Stelco Inc.
in Canada.
Acquisition of Sonasid in Morocco
and Dofasco in Canada. Merger
with Mittal Steel, creating
ArcelorMittal.
Acquisition of NSD Ltd. in the
United Kingdom, MT Majdalani
and Cia. in Argentina, and Cinter in
Uruguay.
2005 - Acquisition
of Huta Warszawa in
Poland.
2008 - Acquisition of
Unicon in Venezuela,
three coal mines and
associated assets in
Russia, of the Brazilian
iron ore company
London Mining Ltd. in
South America.
Acquisition of Koppers
Monessen, plant near
Pittsburgh, Pennsylvania,
United States.
2011 - Expansion of
mining construction
in the Mont-Wright
complex in Port-Cartier,
Canada.
2010 – Confirmation
as sponsor of the 2012
London Olympic and
Paralympic Games.
Construction began of the
ArcelorMittal Orbit tower
in the Olympic Park.
5
What We Do?
What We Do?
As the world’s largest
and most integrated
steel company, we
have production plants
in 26 countries, mines
in 10, and sales in 60
countries.
6
We benefit from global demand
for steel, both in developed
countries and countries with a
high growth rate, contributing
6% of global steel production.
ArcelorMittal is the leader in
steel in five regions (North
America, South America,
Eastern Europe, Western
Europe and Africa), with
operations on four continents
(America, Europe, Africa and
Asia).
Products:
Our operations are divided into 6 segments:
Flat Products Americas:
we produce plates, cold and hot
rolled products, steel-plated
products, tinplate and heavy plate
in eight countries, such as the
United States, Canada, Mexico and
Brazil.
Flat Products Europe:
we produce products similar to
those above at 15 sites in six
countries.
Long Products America
and Europe:
we produce billets, rebar, rolled
wire, profiles, rods and drawn wire,
as well as tubular products.
Asia, Africa and CIS
(Commonwealth of
Independent States
of former Soviet
Republics):
we make different products in each market.
Distribution Solutions:
we make innovative, custom
products to meet the needs of our
diverse customers, primarily in the
auto industry.
Mines:
we have over 20 mines in 10
countries. We have reserves
estimated at 3.8 billion tons of iron
ore and 323 million tons of coal
reserves.
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What We Do?
Semifinished
Products:
Slab: 2,447 million tons
Billet: over 1,455 million tons
Finished Products:
Wire Rod: over 527 million tons
Rod: over 841 million tons
In Mexico, we have manufacturing facilities in
Lazaro Cardenas, Michoacan (rods, wire rod,
billet and slab), in Celaya, Guanajuato (rods),
and in Ciudad Obregon, Sonora (iron ore
concentrate). ArcelorMittal Mexico also has
dock concessions in the ports of Guaymas,
Manzanillo and Lazaro Cardenas, which allow
for transport of iron ore and raw material to
its different complexes. In addition, we have
the “Volcan” mine in Sonora; “Peña Colorada”
mine in Colima; the “Faraon” and “Las Truchas”
mines in Michoacan, and the “Pluton” mine in
Guerrero, with iron ore reserves of over 300
million tons.
Our plant in Lazaro Cardenas, Michoacan
is strategically located to access global sea
routes from the Pacific coast; while our “Las
Truchas” ore deposit has 18 years of life
remaining, according to our explorations,
which makes ArcelorMittal a source of jobs
for the region of the Michoacan coast for a
long time to come.
8
In 2011 we produced 91.8 millon tons of steel
and 54.1 million tons of iron ore globally.
Globally, in 2011, we strengthened our position
as suppliers in the auto industry. We became a key
partner for most of the world’s biggest builders. As
a result, one in every six automobiles in the world is
built with our steel.
In Mexico, our production in 2011 was 3.9 million
tons of steel and 6.3 million tons of iron ore. We
invested 166 million dollars in capital projects.
ArcelorMittal Mexico is the largest steel producer
in our country, number two in Latin America, and
13th in the world. The steel industry is a large
consumer of electric power and natural gas. As
a result, we are the country’s largest private
consumer of these two inputs.
The products we produce in Mexico primarily supply
the construction, auto, electric power and home
appliance industry markets.
Investing in
Our People
Investing in
Our People
At ArcelorMittal, our
people are our most
important asset and what
makes us who we are in
Mexico and in the world; that is
why the health and safety of our
team members is essential to our
operations, as well as developing
the talent of each person in order
to foster better professionals.
Journey to Zero. How
Are We Doing in Safety?
In 2011, we continued on our Journey
to Zero, a communication campaign
implemented in all of ArcelorMittal’s
operations throughout the world to reduce
workplace accidents, and to reaffirm our
commitment to achieve an accident-free
workplace.
The Lost Time Injuries (LTI)
Frequency Rate of both direct
employees and contractors
improved 42% in 2011,
compared to 2010. Incidents
of injuries were reduced by
nearly 20%. The Total Injuries
Frequency Rate of Contractors
(First Aid + Medical Care + LTI)
improved by 25%, compared to
2010.
In 2011 we
offered 420,383
training hours.
10
The main program that helped achieve
these results was the implementation of
the Fatality Prevention Standards (FPSs),
which are guidelines and procedures for
approaching each task that could result
in a workplace accident if not performed
correctly, in accordance with the established
procedures.
Investing in Our People
Another initiative that encourages the active
participation and oversight of our employees
is Agents of Change for Excellence in Safety,
better known as ACES of Gold—team
members who take on a commitment
beyond and in addition to their daily tasks.
When there is a plant stoppage for major
maintenance, they are assigned and given
authority to verify that all employees are
following all safety rules and procedures,
prior to, and during the stoppage activities.
Ongoing training in the Center for Training
in the Prevention of Significant Accidents
(CeCaPAS in Spanish) has allowed us to
provide more effective training to our
workers, as it provides practical training in
our FPSs.
Achieving our objective clearly, requires a
combination of strategies. That is why we
participate in World Safety Day, training
leadership in safety and in observation skills;
we implement the Safe Conduct Index; and
why we create Central Safety Committees
and Subcommittees.
During 2011, 885 Safety
courses were held, with
22,116 participants and
221,158 cumulative Man
Hours of training.
Of these courses, 251 were for contractors
who work for ArcelorMittal indirectly,
or who are candidates for employment
at the company, which means they are
required to take and pass the Basic Safety
Course. Activities like these demonstrate
ArcelorMittal’s commitment to the
community; given that the knowledge
gained by the participants in these courses
goes beyond the workplace, extending to
activities outside of our company.
We Promote Good
Health Among Our
People
Promoting a healthy lifestyle is an effort that
will have an impact on the well-being of
our employees, and will also have a direct
effect on the work environment.
In order to promote the practice of physical
activity in our company, in February of
2011, we began implementing activities
and techniques to reduce stress, create
a positive attitude, improve mobility, and
monitor ergonomic factors, among others.
As a result, we have 76 promoters of
physical activity in their respective work
areas.
We initiated a physical activity program in
June of 2011, which was planned to take
place every 15 days. However, due to the
success of the program among our team
members, it has been offered every week.
On average, 150 people participated in
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Investing in Our People
Health Fair Results
Without a doubt, one of the great
achievements of 2011 was the Health Fair
organized with four non-governmental
organizations and two government agencies,
which was aimed at our employees,
contractors and the community in general.
The following results were obtained between
October 17 and 21:
4,672 attendees.
59 presentations.
1,800 people participated in the 6th
Walk for Health.
1,853 eye exams.
1,621 screenings for diabetes
mellitus, obesity, high blood pressure and
cervical/uterine cancer.
1,189
people attended presentations
on prevention of disease and health risks.
138
received information on promoting
quality of life.
114 people participated in health
brigades.
604 cases of chronic, degenerative
disease were identified and are being
treated.
In November, a prevention campaign was
conducted with the participation of 910
people, who benefited from administration
of tetanus toxoid, hepatitis, influenza and
pneumococcal vaccinations, as well as
obesity, hypertension, triglyceride and
cholesterol screening.
At ArcelorMittal, we know that promoting
health must transcend barriers; that is why
we have invited our employees’ wives to
our Healthy Cooking Workshops.
Variable Compensation
Plan (VCP)
As an expression of its commitment
to its employees, and with the clear
goal of ensuring equal treatment in
the compensation and bonus plan,
ArcelorMittal introduced a Variable
Compensation Plan (VCP), as part of
its ongoing improvement plan, which is
calculated every quarter.
The purpose of this plan was to bring all
non-union employees together under a
single administration, laying the foundation
for improved competitiveness plans, as
well as reinforcing teamwork where the
sum of individual efforts is in line with
company goals. The VCP is an expression
of ArcelorMittal Mexico’s holistic vision,
which compensates and rewards those
employees who ensure safe working
conditions, while meeting volume and
quality requirements, and taking actions
that reduce costs and improve our
competitiveness in the market.
Training 2011
Training our staff is a priority and an
important factor in enabling us to achieve
organizational goals together. We are
pleased to be able to say that in 2011, we
provided training to 44,252 people, which
is 32% more than in 2010.
A total of 420,383 hours distributed
among the following courses:
Safety
95,421
Skills
37,043
Technical
Quality and Environment
Contractors
Total
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148,464
13,718
125,737
420, 383
Since its implementation in the third
quarter of 2010, 550 employees
have been recognized with the BOLD
Award.
As a clear demonstration of the importance
ArcelorMittal Mexico places on the personal and
professional development of its employees, in
2011, we initiated a comprehensive leadership
development program for all those in management
positions in the company, regardless of level.
Executives, middle managers and plant supervisors
had the opportunity to have contact with innovative
approaches, tools and personal development
practices that allowed them to increase their
capacity to manage their teams effectively to meet
identified objectives. The following courses were
offered:
We Recognize Our People:
Bold Awards
In 2011, we conducted our Annual Organizational
Climate Survey, for the purpose of taking a snapshot
of where we are as an organization. As a result of
the survey, we identified an area of opportunity:
giving our people more recognition. Thus, through
recognition in specific areas of professional
development in a specified time period, we can
reinforce the organizational actions and behaviors we
value in the company. In addition, we are committed
to building a culture of high performance, and to
improving our employees’ commitment to the
company and to retention of talent.
Investing in Our People
Leadership Development
As a result, we identified four key strengths:
• Health and Safety: understood as one of
• Leading by example: 41 executives,
including the CEO, spent two and a half days in this
intensive program. Focused on leadership values,
quality and sustainability, the course gave them the
opportunity to internalize these values, and identify
work process improvements as the surest route
to the cultural change required by the demanding
Mexican and global markets.
• Certificate in Leadership and
Management: 53 of the company’s middle
managers participated in a program designed
especially to meet the needs of ArcerlorMittal,
in association with Monterrey Tech (ITESM).
This program had a profound impact on personal
development, sustaining and strengthening key
leadership skills, such as strategic thinking, open
and effective communication, innovation, conflict
resolution and development of high-performance
teams.
• Leadership Program: 60 managers and
supervisors with staff under their supervision
successfully completed this program, which gave
them the tools to work on their leadership in their
work groups.
the most important processes for our company;
our team members have made a habit of following
safety rules in their daily activities.
• Organizational Direction: our people
identify with the company culture and they know
its values; understanding that the vision of growth is
ongoing and strategic.
• Communication: our staff knows where to
find and search for policies; in addition to knowing,
understanding and living the company’s values.
• Management of Performance and
Values: pride in belonging to the company is
visible; workers have clear goals and objectives
which are realistic, and motivate them to achieve
better job performance.
In addition, we focus on key challenges for improving
the organization, such as Compensation and
Benefits, Professional Development, Marketing,
Organizational Development and Leadership.
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Investing in Our People
Our People and Sports
Year after year, we put out a call to invite all workers and their
immediate family members to participate in the different
tournaments for soccer, indoor soccer, basketball, volleyball, tennis
and chess. Each worker may register for up to three teams, and
their immediate family members can register for two. We provide
all of the gear and equipment necessary to practice the sport of
their choice.
During the 2011-2012 season, 231
teams registered in the different
disciplines, with more than 2,500
people participating.
In addition, ArcelorMittal has two soccer schools for children and
youth in Lazaro Cardenas, Michoacan, which have 14 teams
with more than 350 players of different ages and categories.
Quality Cafeterias
One of the great projects launched in 2011 was the
implementation of a system for integrated management of our
cafeterias, focusing on Safety, Sustainability and Continuous
Improvement.
The focus on cafeterias is in six primary areas:
1. Compliance with NOM-251 SSA1 -2009, NMX F-605 Normex
2004 (Category H) and Safety and Environmental laws.
2. Environment with the implementation of policies and procedures
for water and energy savings, trash sorting and collection, recycling,
wastewater management, etc.
3. Health, in accordance with the “Healthy Diet” program for
company staff and their families.
4. Safety, by implementing safety procedures (JSAs), audits,
emergency plan and participation in programs.
5. Quality, with ongoing evaluation of the quality of processes and
services, as well as internal and external audits.
6. Indicators (KIPs) for measuring absenteeism, staff turnover and
employee satisfaction evaluation.
14
We are continuing the Voluntary
Retirement Program, offering our
employees with more than 10 years
of service in the company and who are
at least 55 years of age, the option of
retiring, in recognition of their history with
and dedication to the company.
As has become a tradition here, we held a Summer Camp from July 11 to August 5 for
over 500 children, most of whom were our employees’ children, although we also invited
children from orphanage Presidente Lazaro Cardenas.
Safety was the theme this year, and we organized a variety of activities for the children,
such as chess, workshops, painting, drawing, soccer, basketball, and swimming, among
others. The company’s investment in this program was over half a million pesos.
Investing in Our People
Supporting Our Team
Vacation at ArcelorMittal
Members’ Career Paths
In 2011, 40 team members retired under
this program, in which the company
invested 42.7 million pesos. At the end of
the year, we organized a party to celebrate
them in the style they deserve for so many
years of service.
We Support Ongoing
Education for the
Children of Our
Employees
ArcelorMittal Mexico has always taken
an interest in improving the quality of
life of its employees and their family
environment. To that end, during the
2011-2012 school year, it awarded
scholarships to the children of employees
who are in elementary and secondary
school, high school and college; thereby,
ensuring that there will be financial support
for the students, and that they will be
able to obtain what they need for their
academic/professional education.
15
Investing in Our People
Connecting with the
University Community
In order to promote young talent at
ArcelorMittal, we have professional
internship programs in which we take an
interest in supporting new professionals by
providing them with for-credit experience
at our company.
A total of 500 scholarships
were awarded, with a total
annual budget of 3.5 million
mexican pesos.
A total of 216 high school
and university students
completed 108,800 hours of
internships and professional
programs in 2011.
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Making Our Steel
Sustainable
Making Our Steel
Sustainable
Controlling Demand
for Electric Power
A system for controlling demand for electric
power was developed based on smart
meters. Its objective is to suspend operation
of certain electrical charges that have a
direct impact on billable demand during
specific periods of time, with the biggest
impact during peak usage periods. The
charge restriction is done in such a manner
that it does not affect the process.
Improving the Power
Factor in the Electric
Power Distribution
System
Environment: 1,845,894 m3
of untreated water no longer
dumped into the river, and was
instead sent to ArcelorMittal for use.
18
In 2011, we set a goal of increasing the
power factor by the installation of a bank of
capacitors, since Mexican regulations require
a power factor of 0.90. If it is lower, a fine
may be imposed. But if it is greater, a bonus
is available.
The amount of $1,086,000.00 USD
was invested, and the bonus was
$444,428.23 USD.
Recirculation of Water % of Blast Furnace Gas Recycled 87.4
from Canals
% Reduction in Energy Use/Ton 1.84
The project involved 3,487,930 m3 of
of Molten Steel
recycled and re-circulated water inside the
plant. This means a direct water savings of
3,487,930 m3 that was not drawn from
the river, which resulted in a savings of
$552,269.20 USD
Making Our Steel Sustainable
for the company.
Improving Our Environment
Given the importance of having more efficient anti-pollution systems for controlling
atmospheric emissions, managing waste and wastewater, ArcelorMittal Mexico made major
investments in these areas to obtain additional anti-pollution systems and replace obsolete
systems with better technology.
During 2011, a total of $13,000,000 USD was
invested in the following projects:
• Improving control of fugitive dust emissions from electric furnaces, lime plant in the port,
BOF, and in mining concentration processes
• Optimization of the wastewater treatment system in the flat steel department
• Installation of five hazardous waste collection and storage centers and one general
hazardous waste storage center
Investment in
environmental
projects
13.03
millions USD
Improving the Quality
of Life of Animals
In view of the lack of dog control on the part of the Municipality of Lazaro
Cardenas, many homeless dogs tend to enter the company’s facilities seeking
food and shelter. In order to control the population and prevent the spread
of disease, ArcelorMittal’s veterinary care center, in September, implemented
a new practice of capturing, deworming, administering vitamins to and
sterilizing these animals. They are then offered for adoption to company
employees.
19
Making Our Steel Sustainable
Creating an
Environmental Spirit
In April, the first stage of construction of a turtle camp
called “The Turtle” was launched, sponsored by the
ArcelorMittal Foundation, and technically monitored by
the Department of the Environment. The first stage
consisted of preparing a visitor center, building nesting
pens and fencing the perimeter of the area. This will
provide better facilities for the protection of the sea
turtle species that arrive at our coasts, and that are
considered endangered, as well as promoting a culture
of environmental protection in the community through
the large number of school children who visit. The
second and last stage of this program is scheduled for
completion in 2012, including all of the infrastructure
services required.
Environmentaly Certified
At ArcelorMittal Mexico during 2011,
80% of its manufacturing facilities
have received ISO 14001 certification,
and preparation and plans are underway
ATE
FIC
I
T
R
CE
for reaching 100% certified in these
types of facilities in 2012. This standard is a voluntary
certification that represents a commitment on the
part of organizations to implement practices aimed at
environmental excellence, which, in addition to meeting
legal requirements, promotes actions to mitigate
environmental impact, and foster a good relationship with
the community.
20
Environmental Awareness
In June of 2011, ArcelorMittal Mexico participated in the celebration of World Environment
Day, and carried out concrete actions to improve the environmental conditions we live and
work in.
Presentations were made in order to provide relevant information to our team members
related to subjects such as: improving the company’s environmental performance, waste
handling, dangers and extreme caution with hazardous fauna, composting, actions for
reducing greenhouse emissions, the flora and fauna of our region and presentation of
ArcelorMittal Mexico’s environmental investment projects.
Making Our Steel Sustainable
In addition, other activities were organized,
such as tree planting, an environmental
drawing contest for children of team members
and an environmental walk in the company’s
environmental preserve.
Investing in Clean Technology
ArcelorMittal Mexico is in the process of implementing several initiatives on climate change,
which center on installing new technologies for reducing emissions of greenhouse gasses
(GHG). In 2011, the use of Natural Gas was introduced in the bar and wire rod mills and in
Power Plant I, partially replacing the use of Fuel Oil, and resulting in an approximate reduction
of 9,004 tons of CO2 and a reduction of 11,135 tons of Fuel oil.
CO2 Emissions/Ton of Molten Steel
% of Waste Managed (Reuse, recycling, sale and disposal)
1.83
8.29
21
Making Our Steel Sustainable
Municipality
Water
Recycling
ArcelorMital promotes care of natural
resources, which is why we continue
supporting Lazaro Cardenas Municipality,
through the consumption of treated water
to be used in the cooling systems. With
this action, we economically support the
operative consumption of treatment water
plants in the Municipality and we lower the
consumption of river water. On this period
we recycled 1, 845, 849 m3 of treated
water.
% recycled water
34.08
Good Environmental
Development
Recognition
ArcelorMittal Mexico received the
Checking Declaration from Asociacion de
Normalizacion y Certificacion (ANCE) for
being alined with Norm NMX-SAA-140641-IMNC-2007, to the quantification
and inform of emisions and removals of
greenhouse gases in a corporate level in
Mexico and fulfills the established laws
by Nueva Ley de cambio climatico and
Programa GEI Mexico, in the period 20062011. What ranks us in the number one
position as a steel company, and makes us
the seventh in acquiring it in Mexico.
Also Secretaria de Medio Ambiente y
Recursos Naturales (SEMARNAT) gives the
highest recognition of Programa GEI 2 Mexico
to ArcelorMittal Mexico, for showing both
leadership and transparency in the accounting
and reporting of greenhouse gases in 2011.
22
Enriching Our Communities
Enriching Our
Communities
Pireri Cultural Center
We recognize our duty to assist our greater
communities through donations, resource
sharing and employee volunteerism. We
focus our community efforts primarily
in education, health and community
development. Through the ArcelorMittal
Foundation, we support community projects
that encourage sustainable long-term
economic and social growth.
The Pireri Cultural Center AC opened
its doors in 2007 with the objective of
promoting and preserving Mexican culture
and traditions through art.
Pireri has become one of Lazaro Cardenas’s
most important Cultural Centers, and today,
it continues to distinguish itself with its
artistic and cultural offerings, both within
the municipality and outside the area.
Pireri is a non-profit organization, legally
chartered with the Mexican authorities and
its Vision is to preserve Mexican culture,
particularly that of Michoacan, by promoting
artistic and cultural activities in communities
through workshops for children, youth
and adults, fostering learning and selfsustainability for communities through
craftwork and arts activities.
The Center has 11 teachers, and over
the last five years, 14,883 students have
participated in its programs—an average of
2,977 per year.
ArcelorMittal is commited to people
around the company and undertakes
support and social development
projects.
24
Between 2007 and 2012 Pireri has
organized and participated in approximately
200 artistic events in the city and outside
the area, both private, municipal and state
sponsored, and always drawing large
audiences.
200 artistic
performances
in 2011.
More than a service center, Casa
Marikuecha is a comprehensive
development center for families,
recognized by SEP (Ministry of Public
Education), which currently serves 85
preschool-age children. The center
focuses on the core components of being
human, such as the physical, intellectual,
emotional, social, and spiritual dimensions.
85 children and 60 mothers
were served in 2011
Casa Marikuecha covers the basic
nutritional and educational needs of
children in poverty, without losing sight of
the education of their mothers, to whom
we offer programs for personal growth
through a human development program
offered by Mariposas AC.
For the past six years, the ArcelorMittal
Foundation has been supporting Casa
Marikuecha.
$912.000
mexican pesos
donated to Casa
Marikuecha in 2011
International
Volunteer Day
International Volunteer Day is celebrated
on December 5th by a 1985 United
Nations decree. The ArcelorMittal
Foundation made a decision to support this
celebration, and in December of 2011, it
donated improvements to the Elder Home
in Lazaro Cardenas.
In addition to Lazaro Cardenas, activities
were carried out in ArcelorMittal Mexico’s
other locations, such as: Tultitlan (State of
Mexico), Celaya (Guanajuato), Cordoba
(Veracruz) and in several locations in
Sonora.
Enriching Our Communities
Casa Marikuecha
The work donated included painting and
repair of walls, ceilings in some specific
areas, a safety bar that will help the older
adults to move around safely, and other
improvements.
25
“I Am With You”
Non-profit Organization
“I Am With You” Helping People with
Cancer
Enriching Our Communities
“Volunteer work
is done without
expecting anything in
return, and it should
have a clear objective.
I know how to paint a fence, and I can
also plant trees, or give a senior or a
child a moment of joy. That is why I am
here, working with this whole team.”
Oscar Rojas
Contributor of Coquizadora area in
ArcelorMittal Mexico.
150
volunteers
actively participated
in the activities of
the ArcelorMittal
Foundation. They
are our pillars for
transforming the
communities we are
immersed in.
26
In March of 2011, the “Well-being Circle”
was founded in the city of Obregon; a new
project that seeks to improve quality of
life for people with cancer through physical
and emotional well-being activities, both
for them and for their loved ones. Working
with groups of 12 people, support and
information is provided in the areas of
nutrition and exercise, education, stress
management and emotional support.
This project, partially financed by the
ArcelorMittal Foundation, is managed
by the “I Am With You” Non-profit
Organization, which is made up of more
than 100 volunteers who work selflessly
to provide support to those impacted by
cancer.
The Organization also founded the San
Peregrino Guest House, many years
ago, for those in need of lodging while
visiting the Oncology Center in the city
of Obregon. This guest house has also
received support from the ArcelorMittal
Foundation for over two years.
$200.000MNX
donated by AM
Foundation to the Wellbeing Circle and San
Peregrino Guest House
Solidarity Holidays
2011
It might seem like a story in which it is
difficult, but not impossible, to imagine
people from Argentina, Brazil, the United
States, Spain, Mexico and Romania all in
one place with a single mission: to build
three houses in five days.
The volunteers chose to forego the beach
and other tourist destinations, and travel
to Mexico on their vacation to build the
dreams of three families, and become
Habitat for Humanity Mexico volunteers
for five days, with great effort and hard
work. It gave them the opportunity
to learn about the noble nature of the
families, and also enjoy food prepared by
the community at the construction site.
Habitat for Humanity
ArcelorMittal donated
28 housing units
in the community of Cerrito de
Camargo, Guanajuato.
“At last, I am going
to have a house like I
wanted, because I am very afraid
of the air, and when it rains, I get
very anxious … when they told
me that people were going to
come from all over the world to
help me, I couldn’t believe it, and
now I see that it was true … I’m
very happy.”
Edelmira Maldonado
Enriching Our Communities
With the dedication, effort and talent of
members of ArcelorMittal, 19 volunteers
came together in Cerrito de Carmargo,
Guanajuato, to reach the construction goal
in support of families from the community
in association with Habitat for Humanity
Mexico, during the week of June 20 – 24,
2011.
Person benefited from Cerrito
de Camargo community in
Guanajuato.
In 2011, the ArcelorMittal Foundation turned over the keys to 28 housing units to low-income families, in partnership with the NGO,
Habitat For Humanity.
Three of the 28 homes were built by ArcelorMittal employees, as part of the “Solidarity Holidays” program in November of 2010.
They worked as volunteers in the construction of three homes for low-income families in the community of Cerrito de Camargo, in
what was the first pilot project of this program.
27
Mariposas
Transforming lives in Lazaro Cardenas and
Ciudad Obregon.
The project known as Mariposas
(Butterflies) was launched in Lazaro
Cardenas in January of 2011 with a group
of seven women, and one year later,
there were already over 200 women
participating voluntarily and regularly in the
Human Development program provided by
the non-profit organization.
Enriching Our Communities
Mariposas AC is a group that was founded
by women, for the purpose of promoting,
protecting and defending the rights of
women in vulnerable situations. Their
goal is to help women develop goals and
objectives in life, and enrich themselves
with elements such as integrity, gratitude,
honesty, generosity, commitment,
freedom, forgiveness, friendship and
optimism. All of this helps empower
women to prevent all manners of
violations of their rights.
The assistance provided focuses on
women in crisis and victims of physical,
mental and sexual violence, or any other
type of abuse. Mariposas AC supports
these women with emotional, spiritual,
mental and legal guidance in order to
create the conditions necessary for them
to be able to overcome the obstacles they
face, and live life to the fullest.
Then in December of 2011, Mariposas’
professional staff began working in the city
of Obregon, Sonora, with a small group
of 37 women, which continues to grow
everyday.
230 women
in Lazaro Cardenas
were served by this
program in 2011
28
“Yo Quiero Ser”
Once again, we successfully conducted
the “Yo quiero ser” (I would like to be)
program, which provides education
and information about addictions and
their effects on our society.
This year, 17 schools, 645 children
and 27 others participated in the day
organized for children of employees.
672 children
A total of
were trained in 2011.
Transparent
Governance
Transparent
Governance
Agreement with
Community Miners
(Ejidatarios)
We recognize that being transparent
in our operations and governance is an
essential component of being a responsible
corporate citizen. This holds true at the
local level, where we seek to be proactive
in employee engagement and transparent
with all of our stakeholders.
As part of the follow-up to the
negotiations conducted between
ArcelorMittal Mexico and community
miners, permit holders, contractors and
transportation providers, which began in
the last quarter of 2010, the contract
allowing for mining of the iron ore located
in the company’s concessions in Arteaga
and La Mira in Michoacan and La Union in
Guerrero, was renewed in 2011.
1,500 direct jobs
were generated as a
result of the signing
of this agreement.
30
This contract, which was originally
signed in November of 2006, has led
to reactivation of production in the iron
ore mines “El Faraon” in the municipality
of Arteaga, Michoacan and “Pluton” in
Guerrero, both ArcelorMittal concessions,
along with the other mines, and is
expected to reach 50,000 tons of ore per
month.
Reactivation of the mines has had a
significant economic impact, thanks to
which the families of the region have
benefited as a result of the creation of
1,500 direct jobs.
The participation of government agencies
as mediators between the parties
was a key factor in the success of the
agreement.
Human Rights
ArcelorMittal launched Human Rights
Policy throughout the Group
In our work, we sometimes have to
face situations that represent a special
challenge in the area of human
rights-situations ranging from safety in
the areas surrounding the workplace to
non-discrimination. In order to reinforce
this commitment, in late 2010, our group
published a Human Rights Policy outlining
our respect for all human rights, wherever
we operate.
Human rights can be defined as the basic
rights that allow individuals to enjoy the
freedom to live a life with dignity, free of
fear or poverty, and with the freedom
to express independent opinions. These
include rights such as: the right to freedom
of opinion and of expression, and the right
to equal pay for equal work.
While it is primarily the obligation of the
government to protect human rights,
companies like ours have a responsibility
to respect those rights in the course
of doing business. This policy is the
result of a collaborative effort among a
broad spectrum of representatives of
ArcelorMittal and outside experts.
During 2011, all of
ArcelorMittal Mexico’s
employees received training in
Human Rights. With the signing
of the policy, a commitment
was made to respect human
rights in our work environment.
100%
ArcelorMittal Mexico’s personnel
received training on the Human
Rights Policy
OUR OPERATIONS LOCATED IN
MEXICO
Iron Ore-Volcan
Sonora
Administrative Offices
Monterrey, Nuevo Leon
Guaymas
Rod-Celaya
Celaya, Guanajuato
Distribution Center
Guadalajara, Jalisco
Distribution Center (Tultitlan)
Administrative Offices
Mexico City
Lazaro Cardenas, Michoacan
Iron Ore-Peña
Colorada
Iron Ore-Las Truchas
Slab-Lazaro Cardenas
Lazaro Cardenas
Wire Rod & Rod Lazaro Cardenas
Mines
Harbors
Flat Carbon Products
Long Carbon Products
Distribution Center and Administrative Offices
ArcelorMittal Mexico
Sierra Paracaima #115. Col. Lomas
de Chapultepec. C.P. 11000
México D.F.
P +52 55 5249 0750
F +52 55 5486 2042
www.arcelormittal.com
Corporate Affairs
Rebeca Araya
[email protected]
Jose Luis Acosta
[email protected]