Arcelor Mittal Operations: Operational Area Is Sub-Divided Into 4 Parts

ARCELOR MITTAL OPERATIONS
Arcelor-Mittal is a world-leading steel producer with annual achievable production capacity of

approximately 113 million tones of crude steel in 2016. The steel shipments in 2016 totaled 83.9
million tones.
They are the largest producer of steel in North and South America and Africa, a significant
steel producer in the CIS region, and have a growing presence in Asia, including investments in
China and India. They are also the largest steel producer in the EU, with significant operations
in France, Germany, Belgium, Spain, Luxembourg, Poland, the Czech Republic and Romania.
Operational Area is Sub-divided into 4 parts:-
Long steel
Foundry products
products
Coke and
Tubular products
Chemical
LONG STEEL PRODUCT
This highly efficient and low cost operation, rated among the lowest billet cash-
cost producer's in the world by a leading commodities research institute, bears
testimony to the success of the intensive re-engineering programmes undertaken
at ArcelorMittal South Africa.
The profile products produced include low and medium-carbon commercial

grades, low-carbon rimming steel substitutes, sulphur containing free-cutting
steels, micro-alloyed steels, high-carbon wire-rod steels and low, medium and
high-alloy steels.
Growth of its present market share is being realized by providing customized

attention to client requirements, enhanced delivery reliability and product quality.
Internationally, the focus of the operation has been to identify specific global
locations where it can maximize export volume and price, and concomitantly
reduce the risk of exposure to volatile markets abroad.
Successful implementation of re-engineering and continuous improvement

programmes at the business unit has honed the business into a modern,
internationally aligned operation.
TUBULAR PRODUCTS
Tubular Products Vereeniging is the sole producer of hot rolled and cold drawn
seamless tube products in South Africa. The facility employs 250 staff and
produces 100 000 tons of final product per annum, of which some 80% is
exported.
Its strategic priorities are focused on supplying the Southern African and selected
export markets with high quality seamless tube and value added products.
The seamless product range includes Line Pipe for use in Oil and Gas
transportation, Carbon and Low Alloy for use in process and pressure piping
applications, OCTG products and precision tube for mechanical applications.
FOUNDARY PRODUCT
Foundry cast general application castings, for both internal use and for external
clients. They have a light casting mass range of 5 kg to 8 tonnes at our smaller
than 9 tonnes section, as well as a heavy capacity ranging from 40 tonnes up to
320 tonnes at our larger than 9 tonnes section.
The larger than 9 tonnes caters for large castings mostly for applications in the
mines. This includes crushers and slag pots for both internal and external clients.
The foundry is strictly a ferrous foundry capable of casting low alloy steel, high
alloy steel, plain carbon steel and cast iron. The cast iron includes both grey cast
iron and spheroid cast iron. They are also one of only three licensed mechanize
producing foundries in South Africa.
COKE AND CHEMICAL

ArcelorMittal Coke & Chemicals core business is the production of commercial
coke for the Ferro-alloy industry from coke batteries located in Pretoria,
Newcastle and Vanderbijl park. Coke and Chemicals operation produces
commercial grade coke for use by the Ferro-alloy industry, and processes
steelmaking by-products.

All ArcelorMittal Coke & Chemicals plants are ISO 9001, ISO 14001 and OHSAS
18001 listed.
CURRENT CHALLENGES MODERN MANUFACTURING
COMPANIES ARE FACING WHILE EXPANDING TO GLOBAL
MARKET
1. Regulatory compliance and traceability
Nearly every type of manufacturer faces increasing regulations aimed at

everything from ensuring product safety to managing disposal and reclamation
procedures. While many regulations may be beneficial to consumers, each
regulation adds an additional burden to the companies that must comply with the
requirements, which often differ from country to country.
2. Keeping products relevant
Product innovations come at a dizzying pace, and manufacturers struggle to

keep up. As companies vie to be first to market with a new concept, the
temptation to skip steps or skimp on quality materials can be overwhelming. The
last thing a new product needs is to develop a reputation for poor quality right out
of the gate.
3. Aging workforce / Skills gap
Workers are not readily available to replace the retirees, and those that are
available dont have the necessary skills for many critical roles. In addition,
manufacturers may need to be more flexible with their aging workforce, allowing
workers to slow down by working part time rather than retiring abruptly.
4. Supply chain complexity and risks of labor exploitation
When it comes to sourcing products and services from overseas, managing

suppliers and supply chains can also be a tricky process. Unfortunately, the
length and complexity of supply chains increases the chance of working with
suppliers who have unethical and even illegal business practices. Of
growing concern is the risk in international business of forced labor and worker
Exploitation.
5. Currency rates
While price setting and payment methods are major considerations, currency rate
fluctuation is one of the most challenging international business problems to
navigate. Monitoring exchange rates must therefore be a central part of the
strategy for all international businesses. However, global economic volatility can
make forecasting profit especially difficult, particularly when rates fluctuate at
unpredictable levels.
6. Political risks
An obvious risk for international business is political uncertainty and instability.

Countries and emerging markets that may offer considerable opportunities for
expanding global businesses may also pose challenges, which more established
markets do not. Before considering expansion into a new or unknown market,
a risk assessment of the economic and political landscape is critical.

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ARCELOR MITTAL OPERATIONS

Arcelor-Mittal is a world-leading steel producer with annual achievable production capacity of

Operational Area is Sub-divided into 4 parts:-

The profile products produced include low and medium-carbon commercial

Growth of its present market share is being realized by providing customized

Successful implementation of re-engineering and continuous improvement

COKE AND CHEMICAL

Nearly every type of manufacturer faces increasing regulations aimed at

2. Keeping products relevant

Product innovations come at a dizzying pace, and manufacturers struggle to

3. Aging workforce / Skills gap

4. Supply chain complexity and risks of labor exploitation

When it comes to sourcing products and services from overseas, managing

An obvious risk for international business is political uncertainty and instability.

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