Logistics Matters for the World s Largest Steelmaker. October 2012

Transcription

1 Logistics Matters for the World s Largest Steelmaker October 2012

2 The world s leading steel and mining company 1

3 Health and Safety: our no.1 priority Annual health and safety frequency rate* (mining and steel) Quarterly health and safety frequency rate* (mining and steel Q 10 1Q 11 2Q 11 3Q 11 4Q 11 ArcelorMittal s Health and Safety performance improved again in 2011 * IISI-standard: Fr = Lost Time Injuries per worked hours; based on own personnel and contractors 2

4 ArcelorMittal 2011 key figures 2010* 2011 Sales (US$ billion) Allocation of employees in 2011, according to geographic location (full-time equivalent) Ebitda (US$ billion) Operating income (US$ billion) Net income (US$ billion) Shipments (million tonnes) Steel production (million tonnes) Own iron ore production (million tonnes)** Own coal production (million tonnes)** Leader in the metals and mining sector with 63 blast furnaces and 49 electric arc furnaces *Successful spin off of stainless steel business (Aperam) following shareholders approval on January 25, Accordingly stainless steel results have been shown as discontinued operations and all periods reported (results and operational KPI s) have been recast. **Own iron ore and coal production excluding strategic long-term contracts. 3

5 NAFTA Region Anthony Old Copyright 4 ArcelorMittal

6 Flat Carbon Americas Sparrows Point 2011 sales: $21.0 billion 2011 shipments: 22.2 million tonnes Products: slabs, hot-rolled coil, cold-rolled coil, coated steel products and plate Main customers: distribution and processing, automotive, pipes and tubes, construction, packaging and appliances Production facilities located at 8 integrated and mini-mill sites in 4 countries. Operations in Canada, the United States, Mexico and Brazil. Leading producer of high-strengths steels 5

7 ArcelorMittal USA 6

8 ArcelorMittal USA Facilities

9 Welcome to ArcelorMittal Indiana Harbor

10 Welcome to ArcelorMittal Burns Harbor

11 Steelmaking: In Pictures

12 Steelmaking: The Process

13 Inbound Logistics Author 22/10/201212

14 Raw Materials Coal Iron Ore Coal/ Coke Note: Because burnt lime is a perishable material, delivery is JIT and silo inventory is 1 to 7 days. Currently have national and local contracts in place to ensure proper supply at each plant. 13

15 ArcelorMittal USA Inbound 14

16 ArcelorMittal USA Inbound Coal 15

17 ArcelorMittal USA Inbound Coal 16

18 Vendors How many vendors does it take to keep ArcelorMittal Indiana Harbor and Burns Harbor running? 2012 thus far = 2,485 different supplier in MRO (maintenance, repair, and operations) commodities 17

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21 Welland Canal 20

22 Intra-Logistics 3/1/

23 Mobile Equipment 22

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25 Bottle Train 24

26 Lake Michigan & Indiana (LMI) Interchange/Internal Switches 55,500 cars per year 5 Shortline Railroads, exceeding 500 miles of track In 2011, LMI received the Jake Award for Safety from the American Short Line and Regional Railroad Association.

27 Inter-Logistics 3/1/

28 Intercompany Logistics 27

29 Outside Processors 28

30 ArcelorMittal USA Outbound 1,800 trucks per day 432,000 trucks per year 300 railcars per day 72,000 railcars per year 2+ barges per week 108 barges per year

31 ArcelorMittal Outbound in Indiana 1100 trucks per day 264,000 trucks per year 250 railcars per day 60,000 railcars per year 2+ barges per week 108 barges per year

32 Intermodal Shipping 31

33 Outbound Northwest Indiana Mill Shipments 32

34 Outbound from Processors 33

35 Markets We Support 34

36 ArcelorMittal Main Markets Automotive Worldwide no.1 supplier for automotive steels with a leading market share of around 18%. Worldwide industrial presence via about 40 coating lines in Europe, North America, South America and Africa. Construction Globally, the largest single market for steel: a 715 million tonne steel consumption market comprised of diversified products Emerging markets represent more than 50% of the square meters constructed each year globally. ArcelorMittal is a world leader with over 26 million tonnes of products delivered to the building and construction sector in 2011 Packaging New packaging concepts constantly designed to achieve differentiation by steel solution (bottle can, easy open end...). Complementary industrial network in Europe with production plants and service centers near customers' can making facilities. The leader in automotive steels 35

37 Our leadership in automotive steel ArcelorMittal s industrial and commercial network Alliances & JV Automotive production facilities Commercial Teams Global automotive manufacturing presence through own facilities, alliances and JV Proximity to the customer by global presence of commercial teams Global distribution network Unique product offerings to meet demand for safety, fuel economy and reduced CO 2 emission (S-in Motion: 20% weight reduction) Relative stability of margin 40% market share in our core markets Strong investment in R&D Barriers of entry due to technical knowhow requirements for value-added products and customer relationships We are serving globally while developing industrial assets in emerging markets 36

38 Customer Base for Light Flat-Rolled Product Automobiles Wheels Mower Decks Household Appliances Water Heaters

39 Customer Base for Plate Transmission Towers Line Pipe Service Centers Rail Car

40 Customer Base for Plate Offshore Oil and Gas Wind Turbines Bridges and Construction Equipment Shipbuilding 39

41 Critical Challenges/Closing Thoughts Dredging Asian Carp Aging Infrastructure Port Burns Harbor East Gate/Rt. 12 Congestion Joint Committee Industry (ArcelorMittal & NIPSCO) Local Agencies (NIRPC, NICTD, INDOT) 40

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