The steel industry today is much less cyclical than it has been in the past. This is due to a number of key fundamental 
changes that have taken place in the past years. Firstly, we have seen a move towards a more consolidated steel industry and this has had real benefits in creating a better supply-demand balance. Secondly, we have seen increased demand for steel from fast-growing emerging regions such as China, India and South America. When combined, these dynamics have helped to create a more sustainable steel industry capable of providing value to its stakeholders throughout the cycle. Of course, the industry will always be cyclical to some extent, but I believe that we have entered a new paradigm where these cycles are longer and flatter. In terms of the current cycles, the year 2007 was an excellent one for the steel industry. ArcelorMittal is expected to announce record full-year earnings in the region of US$19.2-19.4 billion. We still believe that the long-term outlook for the global steel sector is good with the steel demand continuing to grow at between 3-5% per annum.
What are your growth plans for India and China? In fact, you seem to be following different strategies in the two nations – organic growth in India, and inorganic one in China. Do you think that these strategies will yield results? Why & how?
Both China and India are very key markets for us. We believe that they are the two powerhouses of global growth in the next decade. We are not really following two different strategies. It is just one strategy, which entails expansion in key markets. It is all about the opportunities that present themselves to us. In India, it is currently about setting up greenfield projects in the states of Jharkhand & Orissa. We are very committed to our projects in India and believe that we can add considerable value to the steel industry in this country. In China, we already had a stake in Hunan Valin and we have recently built on that with our stake and offer for China Oriental. We are pursuing the opportunities that present themselves to us whilst always focusing on our goal of increasing our involvement in these key countries.
Where do you see ArcelorMittal, and the Mittal Group itself, five years from now? Now that you are the largest in the steel sector, what’s the next milestone for the Group?
Yes, we are the largest, but, even with more than 110 mt capacity, we only have a small share of the global market. We are committed to further growth for the company and its stakeholders. I hope that in five years’ time, we will still be the global leader in steel but we don’t take it for granted. We’ll continue to expand into new countries and new product areas when appropriate and to increase our own raw material resources, as well, of course, as continuing to provide our customers with world class steel solutions. Our strategy is not driven by tonnage. It is designed to continue to add value for our various stakeholders and enable us to deliver on our brand promise of transforming tomorrow.
What do you think of Ratan Tata as an entrepreneur and what degree of impact would his latest car launch Nano have on global corporate mindsets?
I have great admiration for Mr. Tata. He is an entrepreneur with great vision. The Nano is a fantastic example of vision being transformed into a reality. It is also a great achievement for India and illustrates India’s ability for innovation and entrepreneurship on a global scale. It is a very exciting time for India right now, whether it is in business, politics or science. I am proud to be a part it.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
changes that have taken place in the past years. Firstly, we have seen a move towards a more consolidated steel industry and this has had real benefits in creating a better supply-demand balance. Secondly, we have seen increased demand for steel from fast-growing emerging regions such as China, India and South America. When combined, these dynamics have helped to create a more sustainable steel industry capable of providing value to its stakeholders throughout the cycle. Of course, the industry will always be cyclical to some extent, but I believe that we have entered a new paradigm where these cycles are longer and flatter. In terms of the current cycles, the year 2007 was an excellent one for the steel industry. ArcelorMittal is expected to announce record full-year earnings in the region of US$19.2-19.4 billion. We still believe that the long-term outlook for the global steel sector is good with the steel demand continuing to grow at between 3-5% per annum.What are your growth plans for India and China? In fact, you seem to be following different strategies in the two nations – organic growth in India, and inorganic one in China. Do you think that these strategies will yield results? Why & how?
Both China and India are very key markets for us. We believe that they are the two powerhouses of global growth in the next decade. We are not really following two different strategies. It is just one strategy, which entails expansion in key markets. It is all about the opportunities that present themselves to us. In India, it is currently about setting up greenfield projects in the states of Jharkhand & Orissa. We are very committed to our projects in India and believe that we can add considerable value to the steel industry in this country. In China, we already had a stake in Hunan Valin and we have recently built on that with our stake and offer for China Oriental. We are pursuing the opportunities that present themselves to us whilst always focusing on our goal of increasing our involvement in these key countries.
Where do you see ArcelorMittal, and the Mittal Group itself, five years from now? Now that you are the largest in the steel sector, what’s the next milestone for the Group?
Yes, we are the largest, but, even with more than 110 mt capacity, we only have a small share of the global market. We are committed to further growth for the company and its stakeholders. I hope that in five years’ time, we will still be the global leader in steel but we don’t take it for granted. We’ll continue to expand into new countries and new product areas when appropriate and to increase our own raw material resources, as well, of course, as continuing to provide our customers with world class steel solutions. Our strategy is not driven by tonnage. It is designed to continue to add value for our various stakeholders and enable us to deliver on our brand promise of transforming tomorrow.
What do you think of Ratan Tata as an entrepreneur and what degree of impact would his latest car launch Nano have on global corporate mindsets?
I have great admiration for Mr. Tata. He is an entrepreneur with great vision. The Nano is a fantastic example of vision being transformed into a reality. It is also a great achievement for India and illustrates India’s ability for innovation and entrepreneurship on a global scale. It is a very exciting time for India right now, whether it is in business, politics or science. I am proud to be a part it.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
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