Corporate Responsibility Report 2014
Transcription
Corporate Responsibility Report 2014
ArcelorMittal Galati, 2014 Corporate Responsibility Report People 7,095 own employees + 2,711 employees from direct contractor companies. EUR 87 Million paid in salaries. Business Turnover : RON 3.6 Billion RON The economic activity of ArcelorMittal represents 27% of the Gross Domestic Product of Galati County and 0.5% of the Romania’s GDP. The volume of exports : EUR 438 Million. The company placed orders in Romanian economy : EUR 300 Million. Taxes and Contributions In 2014, the Steel Plant paid EUR 17 Million for the Central State Budgets and EUR 4 Million for the local budgets. We have contributed with EUR 38.6 Millions to the Pensions Fund budget, EUR 11.6 Millions to the Health Insurance House budget and with EUR 1.3 Million for the Unemployment Fund. 2 Contents The 2014 Corporate Responsibility Report reflects the multiple interactions and links between our Galati Industrial Site and the Community. For us, corporate responsibility is about ensuring we understand and manage the expectations of local and global stakeholders. 3 04 Introductory word 06 ArcelorMittal Galati 10 Investing in our people 22 Making steel more sustainable 34 Enriching our community 40 Transparent governance ArcelorMittal Galati Corporate Responsibility Report 2014 Introductory Word Foreword from Bruno Ribo, CEO of ArcelorMittal Galati Esteemed representatives of our community, It is both a pleasure and an honor to share with you the successes and challenges of ArcelorMittal Galati in 2014. For us, 2014 was a crucial year. After 17 trimesters of operational losses, we have started to record positive operational results. This has a multiple meaning. The first one is that our battle for keeping the Plant alive started to show in 2014 the first results. We can say now that the Steel Plant will continue to be the main economic pillar of our community. The second learning is that the mother – Group injected hundreds of millions of Euros in Galati for supporting it in the last 5 difficult years. It was an un-precedent flow of resources with the only purpose of preserving the steel production and the steel-makers jobs. Last but not least, despite this successes, we were not in 2014 in the position of financing investments and stocks. 2014 was also a positive year in terms of improving our environmental results. Currently, our industrial unit is polluting much less and fully respecting both the Romanian and European laws. Despite the financial constrains we will continue to invest in environment and in reducing our footprint. Our results in safety were not so good. We have lost 2 colleagues and a number of accidents was recorded. This shows that our Journey to Zero accidents is a never-ending effort and multiple measures to correct the risky behaviors and conditions. For us, it is more important that each and every of our employees go home safe and in good health condition, than making profits. 2014 was also an year when we have consolidated and strengthened the presence in the community. As you probably know, in the last year 5 we have focused on health and education. We will continue on the same directions, as there is a lot of work in these important domains. Also, last year meant for us a continuation of our efforts and explanations in the energy field. The distortions appeared in the energy markets affected us and are still causing difficulties for us. We are now happy to see that some necessary corrections were taken and announced and others are expected by us to be implemented. I am using this opportunity to re-affirm that we are not asking for any preferential treatment, but – as an honest investor and entrepreneur - we are seeking for a honest business environment. Our industrial activity must continue in the benefit of our people and the community. Finally, I remember with pleasure the fact that we were visited in 2014 by important state officials. It was for us an honor to meet with them, but also an opportunity to explain our difficult situation and the efforts we are paying for overcoming these challenging times. The 2014 Corporate Responsibility Report reflects some of our efforts, successes and even failures. I encourage you to read about these and express your opinions through our normal channels. Bruno Ribo Chief Executive Officer ArcelorMittal Galati Bruno Ribo Chief Executive Officer ArcelorMittal Galati ArcelorMittal Galati Corporate Responsibility Report 2014 ArcelorMittal Galati, About ArcelorMittal Our approach With annual achievable production capacity of approximately 115 million tons of crude steel, and 222,000 employees across 60 countries, ArcelorMittal is the world’s leading steel and mining company. Present in 19 countries, the company is leader in all major global steel markets including automotive, construction, household appliances and packaging, with leading research and development and technology, sizeable captive supplies of raw materials, and outstanding distribution networks. Our core philosophy is to produce safe, sustainable steel. In so doing, our top priority is safety and our goal is to be the world’s safest steel and mining company. As a company, we are committed to our promise of ‘transforming tomorrow’. Guiding us in this are our values of sustainability, quality and leadership. ArcelorMittal in Romania In Romania, ArcelorMittal has 6 operating facilities, which include Galati (flat products), Tulcea (lime quarry), Iasi, Roman, (tubes and pipes), Hunedoara (long products) and Romportmet (a captive port on the Danube) and several functional services units.The total number of ArcelorMittal employees in Romania is about 10,000 people, including 6,500 in Galati, the flagship of the Romanian production units and another 50,000 indirect jobs. ArcelorMittal is among the first exporters in Romania. More than 70% of the output is exported. Located in the South-East of Romania, ArcelorMittal Galati is the largest integrated steel plant in the country and leader in manufacturing metallurgical products, with a production capacity of 3 million tones of steel. The unit is one of the main pillars of the community in Galati, known as the ‘steelmakers’ city’. Hunedoara- Profiles, barrs & billets Pantelimon ArcelorMittal Construction Bucuresti ArcelorMittal FCE Commercial Offices Tulcea Lime Quarry Galati Flats Romportmet Danube Port Galati pipes & tubes Roman Seamless Pipes Iasi Longitudinally Welded Pipes 7 ArcelorMittal Galati Corporate Responsibility Report 2014 ArcelorMittal Galati, ArcelorMittal is transforming tomorrow by… Investing in our people Making steel more sustainable Enriching our communities …this is all underpinned by Transparent governance We focus on four areas: investing in our people; making steel more sustainable; enriching our communities; and transparent governance, a principle that underpins the first three areas. Investing in our people Enriching our communities Transparent governance Our people are at the heart of our business.Their success is our success. We need their ideas and rely on their hard work and commitment. We treat them with dignity and respect, investing in their development, and providing them with a safe and healthy working environment. We play an important role in the communities where we operate. We want to contribute to the development of strong and sustainable local communities, wherever we are in the world. We do this by being sensitive to local cultures, issues and priorities, by engaging with our communities in an open and transparent way, and by working in active partnership with local and national organizations. We believe in open and visible governance, grounded in business reality. We will take steps to understand our true impacts, predict future consequences, and manage risks consistently across our operations. We will engage meaningfully with key stakeholders, and respond in a transparent manner. Making steel more sustainable We are using our expertise in steel to find ways to operate more efficiently, to develop new processes and more sustainable practices, and to work in partnership with our customers and suppliers to help them achieve their environmental goals. 8 ArcelorMittal Galati has a detailed stakeholder engagement process that begins annually with stakeholder and issue identification at the local level, in alignment with corporate guidelines. We encourage open and transparent relations with stakeholders and address any local questions or concerns. We work closely with all of our stakeholders, both internal and external, to deepen our engagements and move the needle on material issues. This spirit of collaboration drives our business forward and allows us to set a strong foundation of leadership in our communities. We must lead, facilitate and participate in the conversations that affect our communities. This approach ensures we work collaboratively to address important issues and goals that we share. “We need the support and understanding of our stakeholders. Effective engagement to ensure they have a good understanding of our business and the decisions we take is vital.” Lakshmi N. Mittal Chairman and CEO ArcelorMittal Our stakeholder Customers 9 Employees Government Local communiand regulators ties Media Non governmental organizations Suppliers Stakeholders issues • Quality of products • Ethical business practices • Safety in products • Health and safety • Working conditions • Remuneration and rewards • Career development • Operational excellence • Social and economic development • Attracting investment • Emissions control • Biodiversity conservation • Employment opportunities • Community engagement processes and plans • Environment and emissions control • Social investment • Job security • Industry challenges and developments • Health and safety • Environmental issues • Environmental protection • Health and safety • Social and economic development • Working conditions • Human rights • Code for responsible sourcing • Quality of products • Operational excellence • Ethical business practices How we engage • Site visits, customer days • Customer oriented publications and events • Partnerships, our engineering teams in customers’ plants • Intranet • Meetings • Employee survey • Newsletters and publications • Training programs • Trade union relations • Country specific forums • Conferences and speaking engagements • 1:1 formal dialogues • Local engagement workshops • Local corporate responsibility reporting • 1:1 meetings • Site visits • Press releases • Interviews • Internet • Twitter • Partnership • Formal meetings • Correspondence and events • 1:1 meetings • Dialogue through account management relationships • Regular engagement with our local management on-site Our relationship • Provide innovative partnerships for sustainable growth • Improve quality products and services • Central to the success of our business by demonstrating productivity, quality and leadership • Provide a safe and enriching work experience • Generate economic growth through revenues, taxes, fees and product innovation • Key to providing fair and transparent competitive trading conditions • Provide support for local economic development • Build trust with local communities • Provide industry trends as well as social, environmental and economic information • Build and protect and raise awareness of our products and operations • Provide an insight into the needs of society and the environment • Monitor our performance in meeting the needs of stakeholders, vulnerable groups and society • Secure delivery of good value and quality products and services • Meet responsible sourcing requirements • Provide fair access to business opportunities ArcelorMittal Galati Corporate Responsibility Report 2014 Investing in our people Health and Safety Account Journey to Zero Starts with Each of Us! ArcelorMittal Galati had a promising start in 2014 with a 0.64 LTI frequency rate per 1 million hours worked in the first six months of the year. However, regrettably, in January and April, two fatalities occurred, one in the Steel Melting Shop, as a result of a fall from height and another in the Finishing area: an employee of a contracting company, crushed by a tree under which he was improperly cutting. They were followed by a series of accidents resulting in injuries, the most serious being recorded by a team of three workers of the company GSWI who took part in installing an iron ore sorting machine at the Slag Dump. Frequency Rate 11 Statistics show that the frequency rate fluctuates from year to year, which proves that in certain years, certain targets can be achieved, but which cannot become sustainable. The best example of this is the number of fatal accidents, which in three years was zero, and in the first eight months of 2014, raised to two. Some departments have made good progress along our Journey to Zero accidents and injuries, which strengthens our confidence in the way safety can be addressed, such as the Central Maintenance Department, which has not recorded any LTI during the last 4 years. 9 reinforcement actions have been put in place in 2014: - recertification of anchorage points; - OHSAS 18001; - improving the assessment process of the contractors performances; - communication and investigation of incidents/accidents; - training and certification of the staff as per the legal requirements; - labor and emergency medicine + Local Compliance Assessment Process; - H&S performance indicators; - H&S audits; - Annual SMART training. ArcelorMittal Galati Corporate Responsibility Report 2014 Investing in our people € 840 are invested annually in H&S per worker and a total of € 33 Million invested since 2009 Our company, which is among the safest in our industry, strives to create a culture where each and every of us feels responsible for the safety at work and takes responsibility for himself and others. This is the basis of our leading by example program. It is about creating an environment where people do not accept lowered standards and risktaking, in openly discussing the strengths and security issues and who believe that “zero accidents” is an achievable goal. All the employees of ArcelorMittal Galati have received training under the program ARC 2015+, which is the cornerstone for the creation of a management system based on leadership. The concept of leadership is fully compatible with Journey to Zero Accidents and the campaign “Stop, Think and Act I apply in practice”, launched at Group level. Leading by example entitles us to raise any of the issues of health and safety, to support our colleagues and to communicate with them. Only by when we encourage our colleagues to believe the same thing, we will be able to arrive at our destination: Zero Accidents. We can create a culture in which each of us has the power to make a difference, where security is not compromised and where everyone of us can return home safely to our families every day. Only dedicating ourselves to this vision, we can achieve our goal. The BBS visits are another current approach to rising awareness on potential hazards present on the shop floor and an opportunity for the workers to communicate openly with their managers and raise their points. It is a friendly tool, focused exclusively on identifying and improving risky working conditions and behaviors with view to eliminating subsequent undesired events. The most accident-prone occupation category remains the LOCKSMITH! 12 In 2014, the H & S Day concept turned into the H & S Month. “Working at heights” and “pinch points” were the major themes of the workshops conducted on the 2014 International Health and Safety Day. During these workshops, root-cause analysis were carried out on the most severe accidents and the near-misses occurred during 2013 – 2014. Since excellence in the Health and Safety means also a successful business, we cannot afford to lose ground in this particular area! Therefore, the observance of the 10 Cardinal Rules continues to be of an utmost importance for us since almost every severe accident is an outcome of breaking at least one Golden/Cardinal Rule. “Participants to H&S Day: 6,814 - own personnel; 1,247 - contractors; 22 - trade unions representatives. “23 people died last year in ArcelorMittal worldwide, which means as many families and teams destroyed. 16 LTIs occurred in Galati during the same period and two fatal accidents occured earlier this year. 90% of these accidents are repetitions of past accidents. This is a sad experience and shows us that the incidence likelihood is virtually double among contractors than our own employees, which is unacceptable. We are still in an area of dependence on our colleagues, nevertheless the shared vigilance is still a dream for us”, said Bruno Ribo. After a moment of silence in the memory of victims among our colleagues and after watching the related movie officially launched, illustrating the most representative accidents occurred in the previous year, the event ended with an awarding ceremony for the departments and contracting companies that have achieved the best results in Health and Safety last year, as well as for the various competitions winners on topics related to the field of Health and Safety. The Health and Safety Day preparing activities were concluded with a fire fighting drill with victims rescuing. The air quality in the area was monitored during the fire simulation, using portable analyzers of the Department of Environmental Protection laboratory. 13 ArcelorMittal Galati Corporate Responsibility Report 2014 Investing in our people Health Week: Medical Checks, Vaccination and Awareness Campaigns In order to support its employees improve their health, ArcelorMittal Galati organized at the end of September, along with all Groups’ units, the Health Week with specific actions ranging from routine investigations up to sporting events or trainings on first aid in different situations. ried out on the shop floors: “Quit Tobacco!” and “Hearing Protection”. Moreover, specialized medical investigations were available to all employees, such as: internal medicine and ultrasound investigation, cardiology, ophthalmology, diabetes and nutritional diseases and gynaecology. Starting September 29th, the specialists in the Health and Safety Department also performed a vaccination campaign against the seasonal influenza, available to all employees who registered in the program. On October 2nd, the employees of the Plant were invited to an hour’s walk in the Public Garden of the City, to work out and also for sightseeing. During the same period, in all the access points to the Plant, an informative campaign regarding the harmful effects of alcohol and illegal drugs consumption was rolled out. At the same time, other campaigns were car- A Health and Safety Culture The series of actions organized at the level of our unit for an entire week, with view to promoting a healthy lifestyle, was concluded with a cross contest for all age groups. The contest was organized on Saturday, October 4th, at 10,00 a.m. at Siderurgistul Stadium. Prizes were awarded to all categories of winners, consisting of money amounts - 500 RON. 2nd place - 400 RON. 3rd place - 300 RON. 1st place 14 Health & Safety annual trainings ArcelorMittal Galati Total no. of employees- 6,486 Trained employees-6,256 Employees to be trained- 230 Romportmet Total no. of employees- 349 Trained employees-349 Employees to be trained-0 Contractors Total no. of employees- 1,600 Trained employees-1,353 Employees to be trained-247 2/3 measures established during the Health and Safety Committees in 2014 have been solved Emergency situations: 146 rescuers are trained on a monthly basis! 15 ArcelorMittal Galati Corporate Responsibility Report 2014 Human Resources: Investing in the development of our people is one of our main priorities because our employees are the most valuable resource we have Investing in our people Human Resources are developed at ArcelorMittal Galati on the following key- principles: • Transparency • Unconditional respect • Fair and non discriminatory approach • Communication and fair information in due time • Attention paid to social problems and to the families of our employees. All these principles lead to a continuous improvement of quality, sustainability and leadership, correlated with the commitment shown to people within the spirit of our activity. “Our Steel Plant is not only the main pillar of the local economy and the most important steel producer in Romania, it is also the home of the biggest team working on an industrial site in Romania. Being part of such a large family brings us great responsibility and pride. Our duty is to ensure the proper work conditions for our colleagues and our partners from contractor companies, so that they can always reach home safely and healthy. The creative Human Resources family has developed in the last years, modern and fast services and professional development opportunities for employees. Also, our human resources specialists have designed various programs meant to attract young engineers and workers, some of our programs, such as the Apprentice School, unique in our country. Our biggest joy is to create new human connections every day and grow as a team! Our people are not only the essence of our business, but also ambassadors of our company, so we do our best to meet their hard work and loyalty with respect, fairness and professionalism.” Mihaela Crãciun Head of Human Resources 17 ArcelorMittal Galati Corporate Responsibility Report 2014 Investing in our people Continuous Improvement The role of our unit’s Training Center is extremely important in achieving the organizational goals as it is the promoter of continuous learning and development. The training process is open for all employees and it is based on the organization’s three main values: sustainability, quality and leadership . Key points In 2014 ArcelorMittal Galati offered: Training Programs: 264 Internal Training Programs:185 External Training Programs:79 6506 (98, 7%) of our employees attended at least one training 170703 hours spent training “ACT + Leadership Academy” Launch A comprehensive managerial development program was launched in ArcelorMittal Galati, namely “ACT+ Leadership Academy”. The program represents the top level of Learning and Development programs in Galati: a Leadership Academy which is in fact an integrated learning and development tool, a combination of training, coaching, applications, pre-works and mentoring, during 7 months. “ACT+ Leadership Academy” is designed on three levels: experienced managers, younger managers and foremen, tackling leadership topics, adapted to the context and specific of ArcelorMittal Galati. “This program is an opportunity for you to understand yourself your strong points and also you weaker points, reflect on them and find ways to change you work, and also to understand the changes needed by the organization . “ACT+ Leadership Academy” represents a transition from spot programs (ACT1 - ACT3 ) to permanent development . After years of implementing managerial developing programs, I can see now an alignment“, said Bruno Ribo, the C.E.O. of ArcelorMittal Galati to the first group of participants. The participants in the first training session have mentioned as regards their expectations from this program, aspects such as: self knowledge, optimizing the services provided by the teams they are in charge of, improving the way they lead their teams, sharing the acquired knowledge. The first module in the series of four deals with subjects related to personality, character and motivation. “How can I make it different ?” was the starting point in the new approach. 18 Ideas of Progress In 2012, our unit launched the Ideas of Progress Program, an initiative dedicated to workers. Those who generate and implement ideas that improve Health and Safety, Quality, Costs, Viability or the Working Environment receive financial rewards. Since then, 7075 ideas were generated. The employees who generate the best ideas of progress receive an additional recognition annually, when they are invited to a ceremony and rewarded with medals and prizes. In 2014: 1409 ideas validated 32%employees involved 1670 employees rewarded Strategy Business Seminar More than 60 managers of ArcelorMittal Galati gathered in the fall of 2014 to discuss the 2015 priorities and strategy on a one-day working seminar. “Our strategy for next year is clear and is part of the Group’s strategy: our industrial footprint was already adapted, so we are now focused to run in full our core equipments and to produce more higher added value products”, said Bruno Ribo, Chief Executive Officer to the participants. The managers highlighted the main focuses for 2015: to reach a production of 2 million tons– without safety incidents - at a better quality and services and Another important, to improve the maintenance and reliability of our equipments, reduce costs especially for the energy resources and our fixed cost through productivity improvements and last but not least, to maximize our presence in Romania, to target new customers for plates and to continue developing new higher added value products in our portfolio. 19 All these, aligned with our vision to transform ArcelorMittal Galati into an agile, flexible and profitable integrated steel plant, known as regional reference for its safety, the service to the customers, the quality of its products and a reliable partner for the community. ArcelorMittal Galati Corporate Responsibility Report 2014 Investing in our people More than 3,000 Participants to the Open Doors Day in Galati In June 2014, the Steel Plant in Galati opened the gates for the employees’ family members for the second time in its almost 50 years of history. After the success of the last year’s first edition, the number of visitors multipled three times for the greatest feast of the year. Kids, former employees, authorities: everyone had to choose how to spend the day in a pleasant or interesting way. Starting early in the morning, the guests had a choice among trips on the shop floor and wide range of information and entertainment activities in front of the Administrative Tower Building. Nearly 100 former employees have visited their work places and met with Bruno Ribo, CEO of ArcelorMittal Galati, who explained them the current status of the unit and the plans for the future. “We are very happy to welcome you here in such a large number! This kind of event will become for sure part of our culture, as it is in other units of ArcelorMittal Group”, state Bruno Ribo. No less than eight production departments, starting from Sinter Plant and Blast Furnace, through Steel Melting Shop and three mills became points of interests for the curious who wanted to see how steel is made. A huge success was a tour of the plant with a… train specially built for the event in record time by the employees of the Internal Logistics Department, who turned into guides for more than a thousand people. The smallest of our guests had more attractions in entertainment: a large play ground for several age groups, artistic programs and competitions arranged by the representatives of the Environment, Human Resources, Quality and Health and Safety Departments. Our children were involved in various activities throughout the day; huge mascots, balloons, clowns, face painting, a folk ensemble and a group of street dancers and an MC keeping the spirits high. Everybody got gift bags on their way out. A team of over 200 volunteers and organizers contributed to the success of the Open Doors Day, an event that will surely become a part of ArcelorMittal Galati tradition. June is dedicated to our children Every June, on the occasion of Children’s Day, our unit organizes a contest dedicated to our kids. In 2014, the employees’ kids received a photo challenge: they had to submit a photo of them and their animal friend. More than 200 photos were submitted and the most original were rewarded during a ceremony at our club in the city. Also, on the first day of summer, more than 4,500 children, whose parents work for ArcelorMittal Galati, were offered gifts on the part of our Company, consisting of large packs of books, carefully selected for everyone’s age. 20 Gender Diversity Diversity and an inclusive workplace are critical to our company and we are taking extensive measures to ensure that the attitudes of openness and inclusivity are embedded at every level of ArcelorMittal. Following the ArcelorMittal Group’s initiative regarding gender diversity within the organization, the Human Resources Department carried out a series of actions, dedicated to women in our plant. The program is rolled out for the second consecutive year and is targeted at encouraging the development of women from all professional levels, giving them equal opportunities to those of men. Presence of women in our unit: management– 17,3% white collar workers - 31% blue collar workers - 12,2% Open Dialogue between our lady - colleagues and members of our Management Commitee More than 200 women from all structures in the Plant (workers, exempts and managers) met in 2014 with 2 members of our Management Committee, Bogdan Grecu, Head of the Supply Chain and Tatiana Balta, Head of Support Services, to discuss various issues related to gender diversity in our unit. The women in the audience had the opportunity to ask questions on their access to trainings, the chance to be promoted inside men teams, their legal rights or the support that our management can give them in order to reach a work – family life balance. “My conviction is that women’s presence is necessary in our business. My expectations are the same for men and women; nevertheless, women add value by personality, ambition, sensitivity, diplomacy and - why not? - responsibility. They think twice before acting and one cannot treat aggressively a woman, this is why women in certain positions are key to efficiency”, Bogdan Grecu stated. 21 More than 700 women involved in our Gender Diversity Program The End-Year Meeting of our Women Colleagues with the C.E.O. Art contest dedicated to women More than 120 women from all professional levels in the Plant spent two hours with our C.E.O., Bruno Ribo, to discuss various issues that they face in their daily activity within the larger frame of Gender Diversity program. “Diversity of every kind is a benefit in any business, not just in terms of gender, but also of background, origin, competence of people. I for one do not make a distinction between male and female, I treat people as individuals with unique personalities and I think we need more women especially on the shop floor, particularly in Maintenance or Health and Safety”, Bruno Ribo added. In the spring of 2014, just in time for International Women’s Day, our unit launched a challenge to all employees: an art contest meant to stimulate their creativity and raise awareness of women’s role and importance in business and day-to-day life. The participants had to submit a work of art (painting, sculpture, graphics, handmade objects, etc) depicting the essence of women. All those who said yes to our challenge were rewarded during a small ceremony and their works were exposed at our Human Resources Department. Also, in 2014, more than 300 women participated at all women team-buildings. ArcelorMittal Galati Corporate Responsibility Report 2014 Producing sustainable steel “The close relationship with our clients is important for developing our company’s business. We offer the certainty of the quality for all our products by creating new ones; we are on our way to reaching satisfaction, fulfillment and why not? - exceeding the requirements of our clients. Our success is determined by the manner we sustain and develop close relations with the beneficiaries of our products. We are working in accordance with the desires of our clients, we are open, honest, proving commitment to all our partners because we know that all these practices are relevant in order to keep our partners close and attract potential customers.” Frederic Valingot, Head of Quality Department Introducing New Grades of Steel, Approaching New Markets Today, when the steel market is volatile and the long and medium term sale predictions is difficult, when the most part of our clients place orders on tailored demands, our specialists are finding innovative solutions to increase the sales volume and raise customer satisfaction. The heavy plates quantity, delivered for new steel grades: 10.9% The Automated Control of the thermo mechanical rolling This project, started in the Heavy Plates Mill no. 2 in January 2013, deployed by the end of 2014, consisted in developing different process parameters for the automated thermo mechanical rolling of the plates, the benefits consisting in the rise of the products number and the reduction of differences of mechanical properties among similar plates. A low carbon content gets distin- guished in their chemical composition (50% lower than in the normalized steel types). The dimensional range of the thermo mechanically rolled plates: S355MMC ≤80 mm;S420 MMC ≤50 mm;S460 MMC≤40 mm;S500MMC≤20 mm grades. x70≤25mm; x65≤30mm; x56≤40mm - steel for pipes Shipbuilding grades: - Approval procedures for grade Z35 by the registers: LRS,DNV-GL, ABS, BV - Approval procedures for grade 1E170 and 1E1863 normalized rolled product (grades for heavy grades, such as Caterpillar) The First Off-shore Plates produced in Galati Our unit organized a workshop attended by representatives of Business Development Offshore Segment / Oil / Gas of the Flat Europe structure that met with representatives of ArcelorMittal Galati. The goal was to raise awareness and promote the progress we have made in terms of developing new special products. We refer here to the off-shore grades, with 23 industrial applicability in various segments: wind turbines, oil platforms, oil installations and bridges. There are types of steel with superior characteristics, which are subject o specific quality standards, required by end customers. They enable us to address and enter new market niches. The European requirements in terms of offshore steels are on a growing trend by 2017 in major projects such as the wind turbines. If we think of the fact that in such a turbine, the offshore steel share is approximately 95%, we can get a clear view of the opportunities that open to us by penetrating the market of steel grades in this class. ArcelorMittal Galati Corporate Responsibility Report 2014 Producing sustainable steel New projects: • Approvals pending with Lloyd Register Ships for the thermo mechanically rolled plates, grades: A-FH40;A,B,D,E, AH32 (up to 40 mm thickness ), DH, 32, EH32, FH32 , up to 36 mm thickness; • Increased toughness down to minus 60°C, grades: FH32; FH36; FH40 for normalized plates; Customers for Coated Products, • Feasibility registration for the grades S355 62÷98 ; • Implementation under way for the off shore S355G9 and S355G10, thermo mechanically rolled and normalized plates; • Approval pending for grade 1E1006, meant to heavy machinery costruction. Visiting the Plant 80 representatives of our domestic customers for coated products visited Galati production facilities in an event organized by Romanian Agency. These companies, purchasing galvanized coils produced by Galati and organic coated coils from our unit Skopje, roll out businesses in the construction industry, namely: roofing, corrugated sheets, cladding, profiles or silos. The customers visited the Hot Dip Galvanizing Line and the Mechanical Trials Laboratory. They were informed about our technical capabilities and products, and also about our plans for further enriching the product portfolio. Hot and Cold Rolled Coils Thermo mechanically rolled strips: - Grade S355 LC, range: 3÷12 mm; - Grade B: X40, X56. Dedicated products: Grades S355MC and S355N, galvanizing 3rd class, P355 GH and P355NH grades for pressure vessels or rolling stock (wagons); - Boron DC04, DC01 RB_B, HC260 LA and HC 220 (radiators), SAE 1012FH (steel for flat bars), ST 50 K2-FH and ST0K. The quantity of coils shipped for new steel grades: 15.2% New grades HRC : X60 (TMCP) range 3÷12 mm Top Grade / Novelties evolution in 2014: 35,50%, as compared to the previous year 24 Open Dialogue with Our Romanian Customers ArcelorMittal Galati invited before the end of the year, over 100 representatives of our Romanian customers for a series of discussions meant to strengthen our partnerships and help us improve our performance. Besides visiting key objectives on our steel platform (Blast Furnace 5, Cold Rolling Mill, Heavy Plate Mill and Hot Strip Mill), customers were presented our improvements and future targets in what regards maintenance, quality and services. Commissioning a State-of-the-art Facility at Heavy Plates Mill no. 2 The steel plant in Galati invested EUR 2 Million for upgrading the cylinder grinding machine from the Plates Mill 2, targeting the increase of the quality of the products and improving the operations’ efficiency. “The working and the back-up rolls are at a quality, which leads to better plates and generates better costs”, said Emil Rau, Chief 25 Operations Officer Mills ArcelorMittal Galati. The new equipment can grind rolls up to 160 tons. The main modernization works focused on the mechanical parts of the grinding machine and concerned the rehabilitation of the guiding on which the carbon fibre insertion plates mechanisms will move on the axis “x” and “z”. ArcelorMittal Galati Corporate Responsibility Report 2014 Producing sustainable steel A Dream Comes Trues: 7 Million Euro, part of a 90 Million Euro investment program in the BF5 During a 24 days stoppage of the Primary Area, a complex team of specialists had the duty to install a new Bell Less Top (BLT) charging equipment and a profile-meter to improve the production process at Blast Furnace no. 5. The introduction of BLT technology aims at obtaining a good and homogeneous distribution for the raw material on the top of the Blast Furnace. Before the investment The main targets reached after having implemented the new technology at BF 5 consist in increasing the productivity (5,600 tones of hot metal per day), reducing the total fuel cost (490 kg. per ton of hot metal), increasing the asset utilization to 96% by extending the lifetime of the equipment, but also reducing the planned stoppage period and enabling an easier maintenance activity. The current project includes the replacement of the actual charging system by a Paul Wurth Compact Bell Less Top, the replacement of the movable armor with shock plates and the installation of a profile-meter. After the investment The profile-meter is a state-of-the-art equipment for improving the BF efficiency in terms of coke rate, heat losses and productivity, by controlling the charge and the gas distribution. Beside these activities, an intensive program of maintenance was also carried out at the same time, namely the staves replacement, the shaft gunning, while the BF stoppage will be synchronized with the replacement of BOF3 in the Steel Making Shop. The mixed team from Projects Department, BF, Central Maintenance and external support had to put up with a series of challenges such as a continuous risk management during the conception, erection, operation, then the time constraints, that is a short time of stoppage for important mechanical activities, the complexity of dismantling phase, not to mention the big size and weight of the parts to be dismantled and erected. The project is designed within the World Class Manufacturing concept, which imposes clear and simple standards of operation, zero losses, an analysis of the critical equipment, a scheduled maintenance, a safe design of the equipment and access, and also a type of equipment, to be integrated in the global LO/TO procedures. A comparison between H2 2013 and H2 2014 shows a decrease in the total fuel consumption by 20%, an increase of approximately 35 % of the hot metal output per day and a reduction by 15% of the CO2 emissions. 26 The New BOF Can Overtake the Increase in Hot Metal Production Apart from the BF related range of actions, an intenssive maintenance program, including the replacement of Converter no. 3 in the Steel Melting Shop was also deployed. The Converter was delivered in parts, which were assembled at 9 meters height (the converter’s recipient weighting no less than 200 tons and its 160 tons ring), with no disruption of the exiting traffic. The dismantling of the former converter was started prior to the production stoppage so that the erection works to the new echipent should be synchronized with the ones carried out at the Blast Furnace. The converter replacement project had a budget of 2,316 million Euros. Following these investments, the SMS receives now 5,000 tons of hot metal per day, operating in longer sequences with encouraging signs on the quality of the fresh steel production. The converter replacement project had a budget of 2,316 million Euros. 27 ArcelorMittal Galati Corporate Responsibility Report 2014 Environment Overview of 2014 We all understand the importance of protecting the environment, not only because the development of the steel industry directly depends on a good management of environmental resources, but also because environmental protection is essential in terms of human life standards, for the current and future generations. Therefore, in addition to steelmaking, we are trying to achieve a balance between economic performance, social and environmental protection. This is stated in our environmental policy. We engage in the responsible management of our assets, we focus on making high quality products that do not affect the environment, while maintaining a low impact on the environment by recycling. 2014 brought very good results in terms of improving environmental conditions in our unit. A major accomplishment was improving the performance of the Electrostatic Precipitator from Sinter area: more than 50%, in terms of dust emissions concentration, allowing us to fall under new Best Available Techniques limits for secondary de-dusting. The same concept is applied to the rest of ESPs from Sinter. We are focused also on stoppage of water losses. The water consumption was reduced significantly: from 21 m3/t LS* to 12 m3/t LS. For these achievements, our unit was rewarded with the Europe Performance Excellence Awards, for the environmental project based on Asset Reliability Maintenance Program. Maintenance works performed on Blast Furnace no. 5 led to a decrease in consumption of materials with a high content of carbon: coal, coke, natural gas. A great benefit for our company was the implementation and continuous improvement of environmental management system, a fact that adds value in relation with our clients’ requirements. For raising awareness and observance of the environmental policy message, the Environmental Protection Department maintains an open dialogue with ArcelorMittal Galati employees, suppliers, customers and neighboring communities. This open dialogue leads to the development of projects to improve environmental quality. * t LS -ton of liquid steel. Mirela Dobrota, Head of the Environmental Protection Department Performance Excellence Awards – ArcelorMittal Galati among the winners! ArcelorMittal Europe – Flat Products announced the winners of the Performance Excellence Awards for 2013 – 2014. The Performance Excellence Awards represent the perfect method to encourage the best practices within the Group. All the ideas and projects help us obtain better working conditions for ourselves, better products for our clients and better results for the Company, overall. Our colleagues from ArcelorMittal Galati won the award in the ‘Environmental protection’ category, with a project developed by a transversal team and coordinated by the Environmental Protection Department. The project entitled ‘Environment achievements without CAPEX’ succeeded to decrease the water consumption from 21 m3/t LS to 12 m3/t LS*, which is a very important step towards the target of 8 m3/t LS. It also succeeded to reduce the dust emissions concentration by more than 50%, thus improving the performance of ESP (Electric Precipitators) from Sinter area. ArcelorMittal Galati saved almost EUR 15,7 Mil, to be invested in production equipments. * t LS -ton of liquid steel. 29 ArcelorMittal Galati Corporate Responsibility Report 2014 Environment Evolution of CO2 emissions in 2010 – 2014 As it can be seen in the diagram, the CO2 emission factor is on a downward trend since 2010. In 2014, the Plant from Galati reported an amount of 1,901 tons of CO2 per ton of liquid steel, 0,96 tons less than 2013. This achievement was possible due to ‘Energy Saving’ projects, which allowed the reduction of the carbon footprint of ArcelorMittal Galati, and works of modernization performed on Blast Furnace no.5, starting from 2012. Also, these results are due to the reduction of the total consumption of materials with high carbon content, such as coke and coal. 2014 – 1,901 tons CO2 per ton of liquid steel 30 Evolution of the dust emissions In ArcelorMittal Galati, one of our major commitments is to provide a clean and health environment to our community. Therefore, the quality of the air is very important for us, and we do our best to have good results each year. The Sinter Plant accounts for the highest share of the total quantity of dust emissions. The improvements done at primary de-dusting Sinter Machine 5-6, during September 2013 – 2014, with the purpose of reducing dust emissions from over 100 mg/Nm3 to under 50 mg/Nm3 (as required by the new Emission Limit Value beginning with January 2015), led to a 9% decrease of dust emissions in this sector, as compared to 2013. Also, the good results of works performed at secondary de-dustings Sinter Machine 5 and Sinter Machine 6 in 2012 were maintained in 2014,as well. 31 48% reduction of dust emission quantity, as compared to 2007 ArcelorMittal Galati Corporate Responsibility Report 2014 Environment Water consumption in ArcelorMittal Galati reduced by 50% Energize Project The Energize project, launched in October 2012, proves its efficiency year by year. The biggest energy consumers of ArcelorMittal Galati are the Blast Furnace no.5, the Hot Strip Mill, Heavy Plate no. 2 and the Steel Melting Shop, accounting for 86% of the total energy consumption. In most of these areas, in 2014 we recorded a consumption decrease which varies from 2 and up to 12%. The program, launched in 2010, was designed to reduce the water consumption in ArcelorMittal Galati and was continued in 2014 with good achievements. The target set by our specialists for 2014 was 12m3/ LS. However, we achieved 11,9 m3/LS, which is 54% lower than in 2009, as shown in the diagram. The goal of the project is that of reducing the energy consumption of ArcelorMittal Galati by 15% by the end of its implementation. This can only be achieved by maintaining an efficient system of Energy Management, by providing necessary resources and information and by raising awareness among our own employees and contractors regarding the necessity to reduce the energy consumption in their daily activities, personal and job related. The main actions which led to this achievement were: • • • • The implementation of a water flow countering system; • The identification and removal of water losses from networks (network length ~ 1500km). An improvement of the technical status of installations and equipment; The replacement of valves and pumps; The disconnection of stopped installations from water sources (SMS3, Billet Mill, Coke Ovens Plant); 2012 vs YTD Energy consumption reduced by 12,30% (GJ/t) 32 Cleaning Projects Open Doors Day Together for a cleaner Company! On the occasion of the ‘Open Doors Day’ event, celebrated on 21st of June 2014, the Environmental Protection Department had a tent thematically designed, where children were given the opportunity to win prizes made of recycling materials, if they answered correctly to questions asked by our specialists. In October 2014, ArcelorMittal Galati has launched a new cleaning program, entitled ‘Together for a cleaner Company!’. Many employees from all departments were involved in this action and their joint efforts received recognition in June 2015, on the occasion of the World Environment Day. Our colleagues celebrating the World Environment Day, on 5th of June 2014 Protecting the environment is not an obligation, but a responsibility for each and every one of us, both at work and in everyday life. 33 ArcelorMittal Galati Corporate Responsibility Report 2014 Enriching our community ArcelorMittal Galati continues to support the local medical system In 2014, the Plant donated another four state-of-the-art monitors that supervise and measure the vital functions, for the Anesthetics and Intensive Care (A.T.I.) Unit of the County Hospital Galati. “For a total of 45 beds, we have, now, 16 functional monitors, eight of them donated by ArcelorMittalGalati”, said Dr. Nicoleta Lupu, Chief of Unit A.T.I..”These monitors save lives”, she added. Furthermore, The “Burns” Compartment from the “Plastic Surgery and Reconstructive Microsurgery” Department of the same hospital received another nine air conditioning units, besides the five it received last year. “Our unit is, now, completely equipped with air conditioning and also with a new surgical table and a mesh graft, meaning that our patients not only will have higher comfort, but will recover more quickly”, said Dr. Carmen Chelmus, Unit Chief. “ArcelorMittal Galati investments in our hospital cover critical problems that we have to deal with”, said Dr. Mihaela Debita, ArcelorMittal Galati Contributes to the Health of the People from the Nearby Communities ArcelorMittal Galati supports the development of palliative care in Romania ArcelorMittal Galati donated complete sets of medical equipments, analysis kits and sanitary supplies to the nearby communities from Sendreni, Vânatori and Smârdan villages. Our support for the villages of Galati County is completed with important slag donations for repairing the infrastructure elements affected by the floods and heavy snow falls. Last but not least, our group of volunteers organized numerous projects for countryside families in social difficulty”. „We would like to thank ArcelorMittal Galati and all its employees for this generous donation. In our villages there are elder people with poor incomes who cannot afford good health services. The quality and the number of the goods received from you is really a dream for us!”, said Sicuta Murgu, the Mayor of Vânatori village. ArcelorMittal Galati financially supports, since June 2014, an educational project carried out for the first time in Galati by HOSPTICE House of Hope, nongovernmental organization, promoter of palliative care in Romania. The educational project, launched by HOSPICE House of Hope together with ArcelorMittal, will gave 27 doctors and 20 medical assistants prepared to offer palliative care to the sick people in the county. 35 The project educates these professionals through a wide range of activities. 5 scholarships were offered, that ensure access to a series of 3 online courses of palliative care. After these courses, the graduates will received diplomas recognized by the Doctors College in Romania. Also, after finishing a series of trainings, 2 doctors will obtained the legal right to coordinate a palliative care service. ArcelorMittal Galati Corporate Responsibility Report 2014 Enriching our community Solidarity Holidays ArcelorMittal Galati hosted for the first time, the Solidarity Holidays, one of the most important projects of the Group’s. Between 14 to 18 July, our unit, together with the NGO Junior Achievement Romania organized a summer school, where 32 pupils from seven high schools Galati developed business ideas to support the local community. The young students learned in practice, how to turn a need of the local community into an opportunity so as to bring a positive change for the city of Galati, whether working with unemployed people, orphans or elderly. The student teams were coordinated by 10 volunteer consultants from Kazakhstan, Ukraine, India, Canada, Brazil, Belgium, South Africa, USA and Luxembourg, involved in the international volunteering program of our company. They have dedicated a week of their annual leave to share, with the pupils of Galati, from their expertise in various fields, such as finance, maintenance, IT, design, human resources, project management, etc. Besides the training sessions, the agenda included multicultural experiences, every foreign volunteer bringing forth interactive presentations, including not only basic information about their countries, but also curiosities, traditions, costumes and dances. In turn, the young people living on the Danube river bank introduced the international volunteers to our cultural landmarks. Solidarity Holidays program also included a visit in the Plant, when our foreign colleagues interacted with their local counterparts at their working place and had the opportunity to compare and share their practices and also visits a retirement home or at a kindergarten in the city, benefitting from the support of our company. At the end of the week’s work with high school students, a number of business ideas were figured out, the best three being awarded. The winning team in Galati intends to set up a project focused on collecting plastic and turning it into fuel and energy for the benefit of the inhabitants of Galati. 36 Thematic Sessions for students “Maintenance of the Future in an Organization” ArcelorMittal Galati started its 2014 Internship Program with a Thematic Session dedicated to maintenance, one of our top priorities. During the two days event, we invited professors and 70 students from universities in Galati, Iasi and Bucharest to join us for an open and honest dialogue about the challenges of the current business environment and ways in which we can ensure our future. Both professors and students had the opportunity to visit important objectives of our unit, after participating at a discussion with our C.E.O. “Tales of the Heavy Plate” The second Thematic Session of 2014 was dedicated to revealing the stories behind one of our main products, the heavy plate. More than 100 students came to our plant to visit Heavy Plate Mill no. 2 and afterwards were invited to our club in the city to attend a series of presentations made by our mill specialists, who talked about major projects developed recently on the shop floor. ArcelorMittal Galati Launched the Apprentice School In 2014, ArcelorMittal Galati launched an unique educational project, designed to attract young workers and support the local vocational education system. 20 young pupils were selected to spend 6 months in our plant and attend both technical and soft skills training sessions and practical sessions on the shop floors, all under the guidance of a mentor. “We are currently focusing on educational projects, in order to identify, develop and attract young talents, those who will become the future generation of ArcelorMittal employees. This program will allow us to interact, train and offer them the opportunity to start a career in our plant, as workers.”, said Bruno Ribo, the Chief Executive Officer of ArcelorMittal Galati At the end of the 6 months period the pupils will have to take a final exam and the best of them will be hired as the main aim of the project is to discover gifted pupils and make them part of our teams, as ArcelorMittal employees. 37 Summer School for students 36 students graduated the third edition of the ArcelorMittal Galati Summer School, part of the Internship Program. The students worked for 2 months on actual projects, in various areas of the plant (production, maintenance, automation, audit, human resources, etc) and – together with their mentors, specialists of our unit - proposed and implemented projects to improve our operations. Also, the students attended training sessions on various topics: communication skills, time management, presentation techniques and others. The students presented their projects in a ceremony organized at our club in the city, in the presence of managers and mentors. 6 of them were hired as electrical, automation and mechanical engineers. ArcelorMittal Galati Corporate Responsibility Report 2014 Enriching our community Ask the C.E.O.! More than 120 students gathered in November 2014 in the Auditorium of the Engineering Faculty to meet Bruno Ribo, the C.E.O. of ArcelorMittal Galati in an interactive session, meant to introduce the young engineers to the world of steel making. Bruno Ribo presented the audience the main aspects of our activity, the current context of our operations, our top priorities and our perspectives, bringing forward the opportunities that the students may have in terms of starting a career in our Plant. “We are constantly in partnership with the community we operate in and with the education system in particular and this is an exercise of dialogue and transparency we are having today”, addressed Bruno Ribo the audience. The students were interested in many facets of our activity, starting from health and safety, environmental issues, production figures up to human resources aspects. They were presented with the requirements our company has when recruiting from among them, many of those present asking details on how to join our company or our future events organised for the technical students. The meeting was concluded with a voting session, based on which our representatives had a chance of getting a sense of the way our unit is perceived in the community. Rewarding oustanding pupils In 2014, we rewarded excellence for the 8th year in a row. The unit offered financial awards to pupils in our county with great results at National School Olympics Contests. Over 30 youngsters who ranked the first three positions at these contents were invited, together with their parents and professors to attend a ceremony organized at our club in the city. “We are constantly in partnership with the community we operate in and with the education system in particular and this is an exercise of dialogue and transparency we are having today.” Bruno Ribo Ceo of ArcelorMittal Galati Our Children to the Fore As part of our community, ArcelorMittal Galati observes its social responsibility obligations. With view to this, ArcelorMittal Galati has adopted as priorities, a series of local projects dedicated to education and public health. In 2014, more than 600 children from three kindergartens in the city have received donations consisting in computers, projectors, printers, educational software, meant to add value to the quality of teaching. The little ones from “Arlechino”, “Licurici” and “Pinochio” kindergartens welcomed the visit of our representatives, offering in turn some demos of the artistic programs they have prepared with their teachers to celebrate the winter holidays. The program was designed as a multiannual plan and this action was organized this year for the second time. 38 Volunteering The core of volunteers of ArcelorMittal Galati is focused on actions targeted especially at helping families with children in social risk, disabled people, institutionalized elders or flood stricken communities. 23 actions throughout 2014 More than 600 beneficiaries Playing Santa’s Elves for Children in Orphanages Humanitarian Shows Before Christmas, the ArcelorMittal volunteers put up – for the second year – a show for institutionalized children in Galati County. Other employees from the Plant were involved this time, playing the part of Santa Clauses elves. Thus, 75 workmates in ArcelorMittal Galati “stole” Santa’s mail and offered an unforgettable Christmas Little Filip is the son of an ArcelorMittal Galati employee, working in the Finishing Department. The 3 year-old boy suffers from spastic cerebral paralysis, a condition affecting his ability to walk and talk. Since the surgery that Filip is supposed to be subjected to is quite expensive, bighearted people took the initiative of organizing a series of shows in order to raise funds for this operation. With almost no material resources but with a great desire to come to the aid of Philip, the organizers managed to fill the room. Various artists, especially adolescents - some of them in turn with special needs – performed on the stage, wishing to contribute to Filip’s condition improvement. The volunteers from ArcelorMittal Galati - as co-organizers of this event, were actively involved in selling tickets for the show, ensuring the order in the hall, transporting the disabled persons and other actions taken before, during and after the shows. The series of events reached their goal, the amount of almost Euro 5,000 coming from those who have shown that they care for the needs of other people and Filip has now a chance to live a normal life. celebration to more than 40 children. These underprivileged children got everything they wished for from Santa and something more: a sweets buffet and an artistic performance of little artists. Emotions filled the air and by the end of the show, both the children and the grown-ups had their eyes filled with tears of joy. On December 4th, prior to the International Volunteering Day, the local volunteers became the baptismal godparents of another abandoned little girl, Ioana! 39 ArcelorMittal Galati Corporate Responsibility Report 2014 Transparent Governance ArcelorMittal Galati, in a permanent dialogue with the authorities Our business in Romania is not only about industrial processes. We are a living body, with multiple interactions with our communities. The way we have interacted with both local and national authorities transformed and evolved in the last years. We have opened our gates with transparence and honesty and we were pleased to see that our work and efforts are of interest for the Romanian State and for the local communities. The steel producers’ voices are now better heard and their difficulties are on the authorities agendas. This means that there are conditions for Romania to remain an important steel producer in Europe. The public might be aware of our efforts to explain the difficulties we faced regarding the Energy Dossier. We can see now that our arguments were understood and things are going in the right direction. Our fruitful and permanent discussions with the authorities are not only about energy but about ensuring the conditions for improving the entire business environment in Romania, in all the layers. Directly and through our professional associations we are part of, our voice will continue to be heard, in the best benefit of the Romanian Industry and its people. During 2014, ArcelorMittal Galati, together with impotant bussines association: ABIEC (Association of Big Industrial Energy Consumers), CONPIROM (Confederation of Romanian Employers from Industry) and UniRomSider ( Romanian Steel Producers’ Union) , expressed its concern regarding the measures which need to be taken by the Government, in order to maintain a competitive and stable environment in Romania. The main problems faced by the Romanian industry are represented by the high prices for electricity and natural gas, these being restated in every seminar, forum and speaker meeting that our representatives attended in 2014. High Officials Visited our plant The Prime-Minister of Romania, Mr. Victor Ponta, came to Galati in the fall of 2014 with a delegation which included the Minister of Energy, the Minister of Labor and the Minister of Health. Another important policy maker who visited us was the Chairman of the Romanian Senate, Mr. Calin Popescu Tariceanu. Also, Mr.Klaus Johannis, currently the President of Romania, visited the platform. “The Steel Plant is very important not only for Galati, but for Romania. It is important for our country to attract investors and to create the proper frame to keep the investments here. I congratulate the management of the Plant because – among other notable achievements – they succeeded to reduce significantly the energy consumption and the pollution.”, he said. Mr.Klaus Johannis, currently the President of Romania, visited the platform. “The Steel Plant is very important not only for Galati, but for Romania.” Ionel Bors Country Manager ArcelorMittal Romania. 41 ArcelorMittal Galati Corporate Responsibility Report 2014 Transparent Governance Group Policies Grievance/complaint procedure Our governance framework underpins how our company is led, managed and structured, from the composition of our Board of directors, to the way we expect each employee to behave. We believe in open and visible governance, underpinned by a commitment to operating ethically and transparently. We have robust processes in place to ensure we identify and manage our risks and understand the true impacts on both our operations and our supply chain. We also invest considerable time and resources in engaging with our stakeholders. Our commitment is to have group policies and a code of business conduct that all employees understand and live by and to continuously improve and enhance our compliance program. A complaint/grievance should include the following: surname, name, patronymic name of the complainant, place of residence, concern of the complaint or grievance, proposal of solution, if any. Complaints in written form should be signed by the complainant(s) with statement of date. Complaints executed with fault will be sent back to the complainant with relevant explanations within maximum 10 days from the date of receipt. Grievance mechanism The purpose of a grievance mechanism is to demonstrate responsiveness to stakeholders’ complaints. Direct channels of grievance are now designed for stakeholders such as: employees (for law and internal regulations violation), environmental NGOs and public (for environmental topics), unions and employees representatives (for Human Resources and safety topics) and for mass media. All stakeholders are encouraged to submit written grievances and are reassured that written submissions will not be used in any way to intimidate those submitting the complaints. ArcelorMittal Whistleblower 5,279 employees received Code of Business Conduct training 266 employees received Data Protection Policy training The claims to the Whistleblower line are analyzed and solved by the Internal Audit, a team of 10 internal auditors. This structure performs audit engagements on all business processes (Procurement, Operations, Human Resources, Finance, Payroll, Environment, Sales etc.) During 2014, a number of 13 complaints was received via Whistleblower, of which 6 were handled by the Management, 6 were investigated by the Forensic and one was covered in Audits. 118 employees received Human Rights Policy training Hotline website: www.arcelormittal.alertline.eu Hotline e-mail: [email protected] Phone numbers: 0800 89 6794 – from outside the company 3248 – from inside the company Confidentiality In compliance with the country’s law and ArcelorMittal Data Protection Policy, the private data derived from the complaints will not be disclosed without his/her consent, as well as information on state secrets or other protected by law and other information derived from the complaints will not be disclosed if it infringes the rights and legitimates interests of the complaints. Transparent Governance 42 90, 824 working hours, zero violation of Cardinal Rules, inside the Euro 7,261 million budget Blast Furnace No. 5, our strategic asset, which can produce alone, 2 million tons of hot metal per year, has been relined and revamped in 2011, following an investment of over 80 million Euro by a strong local team, with the support of experts at the Group level. The investment in BF 5, made in 2014, amounts to 7.26 million euro, but the project generates 8 million euro cost improvements per year after a ramp-up of one year, taking into account the current market conditions, forcing us to operate with a lower output of 1.6 million tons per year at present. 43 ArcelorMittal Galati Corporate Responsibility Report 2014 Editorial Team Bruno Ribo – Country Head Ionel Bors - Country Manager Dorian Dumitrescu – Country Communicator Oana Vasile -Corporate Responsibility Coordinator Raluca Lefter – Public Relations Specialist Theodora Maria Gatin – Public Relations Specialist Laurentiu Iordache – Photo and Layout ArcelorMittal Galati Corporate Responsibility Report 2014