Despite a blip in Mittal’s plans; the steel tycoon is going strong
Tony Stark, the protagonist of Marvel comic
series Iron Man, is in many ways similar to Laxmi Mittal, the steel empire builder. Both men were relentless empire builders even in the wake of adversity and reservations. Neither was ever affected by complacency. The moniker of Iron Man is best suited for a Marvel universe inspired socio-economic structure. But we may still conclude that the Iron Man of the real world is indeed living up to his name. Not satisfied by his multibillion dollar bid to merge the world’s largest steelmaker with his own company back in 2006, Mittal is back for more. Obviously when you have $105.2 billion worth of revenue, complacency is well just another impediment.
With a production of 116 million tones of steel, ArcelorMittal has a market share of close to 10% in the global consolidated steel industry. In a bid to even further his reach, the businessman of Indian origin has already fired up the first three months of 2008. In April, he first acquired 50% share in Gonvarri Brasil forming a steel servicing JV. “This JV will allow us to further grow in this very promising market (Brazil),” said Jon Riberas, CEO, Gonvarri. Then Arcelor Mittal has announced that the I/N Kote facility in US will now have an additional capacity of 480,000 tones for building continuous galvanizing line (CGL), almost doubling the facilities galvanising capacity. On an annual basis, the I/N Kote facility in Indiana produces close to 450,000 tones of hot-dip galvanised and galvanealed sheet.
Complimenting its growth strategy in the fast growing Indian and Chinese markets, the company has some extensive plans. Apart from the $25 billion investment for Eastern Indian region, ArcelorMittal increased its stake in China Oriental to 73.1%! In a deal worth $718 million, ArcelorMittal will acquire three mines in Russia as well.
Of course, there has been one dark spot too. When ArcelorMittal acquired the Gandrange facility in Eastern France in 1999, little was known that the plant will become a source of disdain. Due to unprofitability and a poor market, when the company wanted to offload close to 575 workers, the workers ransacked the company office. But for those wondering if this indicates there could be trouble in Mittal’s paradise, we must understand it’s a one off case. Mittal’s expansions gives him an excellent leeway in the steel industry. Some tactical blunders do not question the merit of his ingenious strategy; but then, damage control is one area that he may well have to be adept at.
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Source : IIPM Editorial, 2008
Tony Stark, the protagonist of Marvel comic
series Iron Man, is in many ways similar to Laxmi Mittal, the steel empire builder. Both men were relentless empire builders even in the wake of adversity and reservations. Neither was ever affected by complacency. The moniker of Iron Man is best suited for a Marvel universe inspired socio-economic structure. But we may still conclude that the Iron Man of the real world is indeed living up to his name. Not satisfied by his multibillion dollar bid to merge the world’s largest steelmaker with his own company back in 2006, Mittal is back for more. Obviously when you have $105.2 billion worth of revenue, complacency is well just another impediment.With a production of 116 million tones of steel, ArcelorMittal has a market share of close to 10% in the global consolidated steel industry. In a bid to even further his reach, the businessman of Indian origin has already fired up the first three months of 2008. In April, he first acquired 50% share in Gonvarri Brasil forming a steel servicing JV. “This JV will allow us to further grow in this very promising market (Brazil),” said Jon Riberas, CEO, Gonvarri. Then Arcelor Mittal has announced that the I/N Kote facility in US will now have an additional capacity of 480,000 tones for building continuous galvanizing line (CGL), almost doubling the facilities galvanising capacity. On an annual basis, the I/N Kote facility in Indiana produces close to 450,000 tones of hot-dip galvanised and galvanealed sheet.
Complimenting its growth strategy in the fast growing Indian and Chinese markets, the company has some extensive plans. Apart from the $25 billion investment for Eastern Indian region, ArcelorMittal increased its stake in China Oriental to 73.1%! In a deal worth $718 million, ArcelorMittal will acquire three mines in Russia as well.
Of course, there has been one dark spot too. When ArcelorMittal acquired the Gandrange facility in Eastern France in 1999, little was known that the plant will become a source of disdain. Due to unprofitability and a poor market, when the company wanted to offload close to 575 workers, the workers ransacked the company office. But for those wondering if this indicates there could be trouble in Mittal’s paradise, we must understand it’s a one off case. Mittal’s expansions gives him an excellent leeway in the steel industry. Some tactical blunders do not question the merit of his ingenious strategy; but then, damage control is one area that he may well have to be adept at.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
