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.


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.

Business strategy

Three themes


We look to expand our leadership role in attractive markets and segments by leveraging our technical capabilities and global scale and scope. These are critical differentiators for sophisticated customers that value the distinctive technical and service capabilities we offer. Such customers are typically found in the automotive, energy, infrastructure and a number of smaller markets where ArcelorMittal is a market leader. In addition, we are present in, and will further develop, attractive steel businesses that benefit from favourable market structures or geographies. In developing attractive steel businesses, ArcelorMittal’s goal is to be the supplier of choice by anticipating customers’ requirements and exceeding their expectations. We will invest to develop and grow these businesses and enhance our ability to serve our customers. Given the current environment, that investment will be highly disciplined. Commodity steel markets will inevitably remain an important part of ArcelorMittal’s steel portfolio. Here, a lean cost structure should limit the downside in weak markets while allowing us to capture the upside in strong markets.


ArcelorMittal is working to continue to create value from our world-class mining business. Mining forms part of the steel value chain but typically enjoys a number of structural advantages, such as a steeper cost curve. Our strategy is to create value from our most significant assets, through selective expansion/debottlenecking, by controlling cost and capital expenditure, and by supplying products that are highly valued by steel producers. ArcelorMittal's financial capability allowed us to continue to invest in key mining assets (notably ArcelorMittal Mines Canada), while the diversity of our steel and mining portfolio enables the mining business to optimise the value of its products in the steelmaking process. Our mining business aspires to be the supplier of choice for a balanced mix of both internal and external customers, while at the same time providing a natural hedge against market volatility for our steel operations.

All operations

ArcelorMittal strives to achieve best-in-class competitiveness. Operational excellence, including health and safety, the number one priority, is at the core of our strategy in both steel and mining. We steadily optimise our asset base to ensure we are achieving high operating rates at our best assets. Our technical capabilities and the diversity of our portfolio of businesses underpin a strong commitment to institutional learning and continuous improvement through measures such as benchmarking and best-practice sharing. Innovation in products and processes also plays an important role while supporting overall competitiveness.

Five key strategic enablers

Critical to implementing this strategy are five key enablers:


A clear license to operate

Many of ArcelorMittal's businesses are located in regions that are in the early stages of economic development. Practically all are resource-intensive. We recognise that we have an obligation to act responsibly towards all stakeholders. ArcelorMittal's commitment to sustainability is outlined in the Sustainable Development section. Sustainability is a core value that underlies ArcelorMittal's efforts to be both the world’s safest steel and mining company and a responsible environmental steward.


A strong balance sheet

Our balance sheet currently constrains our flexibility for funding organic growth or transformative acquisitions. While good progress has been made in recent years to reduce debt, achieving a sustainable medium-term net debt level remains a critical objective.


A decentralised organisational structure

ArcelorMittal's scale and scope are defining characteristics that give us a competitive advantage. They also introduce complexity and the risks of inefficiency, bureaucracy and diffuse accountability. To manage these risks, we favour a structure in which the responsibility for profit and loss is focused on business units aligned with markets.


Active portfolio management

Throughout our history, we have sought to grow and strengthen the business through acquisition. That remains the case. The acquisition of existing assets and businesses is typically seen as a more attractive growth path than greenfield investment. But we are also willing to dispose of businesses that cannot meet our performance standards or that have more value to others.


The best talent

ArcelorMittal's success will depend on the quality of our people, and our ability to engage, motivate and reward them. As explained in outcomes 1 and 9, we are committed to investing in our people and ensuring a strong leadership pipeline. We will continue to improve our processes to attract, develop and retain the best talent.

Action 2020 Plan

On February 5, 2016, we announced our Action 2020 plan, which represents a strategic roadmap for each of ArcelorMittal’s main business segments. The Action 2020 plan is over and above our ongoing management gains plan and seeks to deliver real structural improvements unique to our business. The Action 2020 plan targets to improve our operating income by US$3 billion, absent any recovery in steel spreads and raw materials prices from the levels at the beginning of 2016.

Some of the key segment initiatives included in the Action 2020 plan are:

  • Europe: We plan to continue our successful asset optimisation as an ongoing transformation plan, involving continued optimisation, and the clustering of finishing sites to remove substantial overhead, centralise activities (including procurement) and improve logistics and service. Together with expected higher added value (HAV) mix and volume gains, this targets delivering a US$1 billion improvement in operating income over the period.
  • NAFTA: The downstream footprint optimisation in the US has commenced and targets yielding a minimum of US$250 million improvement in operating income. We intend to continue to ramp-up AM/NS Calvert to full capacity during 2016 and 2017 and this is anticipated to deliver a minimum of US$250 million operating income improvement. Other projects are expected to boost the HAV mix and generate further improvement.
  • Brazil: We plan to execute our value plan and target an improvement in sales mix including a recovery of a share of higher margin domestic volumes and improved HAV mix by the end of 2020.
  • ACIS: We plan to continue our strategic focus on operational excellence to deliver volumes that will leverage the new competitive cost base we have in the CIS (following competitive devaluation) and execute on the improved competitiveness plan in South Africa.