Steel Products
ArcelorMittal Announces $3 billion Savings Plan
Written by Sandy Williams
March 18, 2013
Written by: Sandy Williams
ArcelorMittal outlined a new management savings target of $3 billion by the end of 2015 by improving the reliability, productivity and energy efficiency of its blast furnaces and mills and shifting to low-cost U.S. gas. The company has already streamlined a number of assets though an aggressive restructuring plan in the last fiscal year, especially in its European operations. The idling and closing of facilities, which led to a 7 million tons reduction of its European production capacity, is expected to yield $1 billion per year in savings.
The company hope to expand its market by around 15 percent to achieve an EBITDA per metric ton of $150—a strong recovery from its drop to $87 per metric ton last year. Chief Financial Officer Aditya Mittal, said the improvement is achievable through market expansion and a rise to 95 million tonnes in global shipments.
ArcelorMittal is counting on its mining division, Brazilian steel operations and automotive steel business to drive profitability as well as an improvement in global steel demand. Lakshmi Mittal, Chairman and CEO, expects to be able to capture 40 million tons of demand recovery from Europe and North America over the next five years and foresees margins improving as fixed costs spread across the greater tonnage.
The company plans to reduce its net debt to $15 billion before planning additional capital expenditures.
ArcelorMittal also announced receipt of $810 million as the first installment in its sale of a 15 percent interest in ArcelorMittal Mines Canada, for $1.1 billion, to a consortium led by POSCO and China Steel Corporation.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Products

US and Canadian rig counts stabilize
US counts continue to hover just above historic lows, while Canadian figures remain comparatively healthy.

Plate market sources critique mill hikes amid current market conditions
Following spot market plate price increase notices issued by domestic mills this past week, participants are contemplating the rationale behind the increases and whether they will stick. Some sources anticipate that current market conditions will shift in November and believe the increases may set a new "pricing floor."

Oregon Steel Mills lifts plate prices by $60/ton
Oregon Steel Mills has joined other producers in announcing a price increase of at least $60 per short ton on steel plate.

CRU: Construction of pilot plant for green steel process starts
Voestalpine and partners have begun building an industrial-scale Hy4Smelt demonstration plant in Linz, Austria, which they hope will become key in the decarbonization of steel.

Rig count increases in the US and in Canada
Oil and gas drilling activity increased this week in the US and Canada for the third consecutive week, according to the latest Baker Hughes rig count data. US counts continue to hover just above historic lows, while Canadian figures remain comparatively healthy.