Overview

2016 was a year of important progress for ArcelorMittal.

Action 2020

Action 2020 is ArcelorMittal's commitment to structurally improving profitability and cash flow generation.

Governance

Good corporate governance is about compliance, continuous stakeholder dialogue and being a good corporate citizen.

Fact book

Details of our steel and mining operations, financials, production facilities and shareholder information.

Employees

41,989

Sales

5.9

(US$ billion)

Ebitda

678

(US$ million)

Steel shipments

13.3

(million tonnes)

Lost time injury frequency rate

0.58

(incidents per million hours worked)

Ebitda contribution to Action 2020

260

(US$ million)

Safety performance

LTIFR

incidents per million hours worked

Color #8B819E
X-axis LTIFR
2014 0.49
2015 0.54
2016 0.58
LTIFR

Severity rate

number of days lost to injury per thousand hours worked

Color #AA9E6E
X-axis Severity rate
2014 0.04
2015 0.04
2016 0.04
Severity rate

Strong relationships with stakeholders built on transparency

Open relationships with stakeholders are important everywhere we operate, but nowhere more so than in our ACIS business. Although the CIS region stablilised somewhat in 2016, political uncertainties remain, increasing the importance of transparency and openness; while in South Africa, good corporate citizenship goes hand-in-hand with a commitment to further Broad-Based Black Economic Empowerment (BBBEE) as the country continues to transform.

More

Listening, learning, respect and transparency are essential parts of our approach to business. This year, we provided focused training on the theme of integrity and human rights in Kazakhstan, while in South Africa we have published a transparent integrated annual report since 2014.

In 2016, ArcelorMittal South Africa achieved first place in a review of integrated reporting among Top 100 Johannesburg Stock Exchange (JSE) Listed Companies by leading black-owned assurance and advisory firm, Nkonki.

The year also saw the resolution of a longstanding case with the South African Competition Commission over legacy issues relating to past pricing-collusion practices. This was a holistic settlement, which came at a cost of R1.5 billion.

With this issue behind us we are now engaging with the government on various matters including trade protection. In 2016, the government imposed duties of 10% on imported steel, and introduced a designation policy, which states that state infrastructure projects requiring steel must use a proportion of steel made in South Africa.

Contributing to South Africa’s transformation

Our South African business is committed to playing its part in the transformation of the country, and in September 2016, we announced a new Broad-Based Black Economic Empowerment (BBBEE) transaction involving issuing a 17% shareholding in ArcelorMittal South Africa to a special purpose vehicle owned by Likamva Resources, a 100% black-owned and 58% black women-owned company. In addition, a separate 5.1% shareholding will be held by the ArcelorMittal South Africa Employee Empowerment Share Trust for the benefit of employees and management.

At-a-glance: key progress against our Action 2020 objectives

Cost

  • Reliable raw material supplies secured in Ukraine
  • New coke oven battery and use of pulverized coal injection in Kryvyi Rih delivers energy cost savings
  • Multiple cost initiatives drives down costs in Kazakhstan
  • Project Focus improves costs in procurement and processes in South Africa
  • New iron ore agreement in South Africa

Volume

  • Improved management practices and target-setting in Kazakhstan and Ukraine drives record volumes

Product mix and customer service

  • Investment in a distribution hub at the railhead in Newcastle, South Africa, to improve reliability and delivery speed as well as reduce road use
  • Competitive advantage as sole producer of thin gauge hot roll coil in South Africa

Outlook for 2017