ArcelorMittal SA

ArcelorMittal SA is a senior iron producer headquartered in Luxembourg, Luxembourg, operating primarily in Mexico and South America. The company's portfolio consists of 11 projects, comprising 7 operating mines, 2 advanced exploration, and 2 expansion projects. Key assets include AMMC, Serra Azul, and ArcelorMittal Liberia. The business model centers on being a globally integrated steel and mining enterprise, leveraging significant scale and a diverse product portfolio. Operational characteristics include a high degree of product diversification, with a strategic focus on increasing the proportion of higher value-added products. The company utilizes both integrated (basic oxygen furnace) and mini-mill (electric arc furnace) production processes, which provides flexibility in raw material and energy consumption and enhances its ability to meet varied customer requirements. A key competitive advantage stems from its dual integration strategy: upstream integration into mining provides a natural hedge against raw material volatility, while downstream integration through a network of distribution and processing centers enables the delivery of customized steel solutions. The enterprise maintains strong research and development capabilities, including multiple research centers and academic partnerships, to drive innovation in products and processes. This integrated value chain, from mining to distribution, is designed to capture leading positions in attractive market segments and adapt to cyclical industry conditions.

Strategic focus centers on leveraging four key attributes: global scale, superior technical capabilities, a diverse portfolio of steel and related businesses, and financial strength. The company aims to expand its leadership in high-value markets such as automotive, energy, and infrastructure by capitalizing on its technical and service offerings. A core tenet of the strategy is disciplined investment, with a preference for acquiring existing assets over greenfield projects, complemented by the active management and disposal of underperforming businesses. Operational priorities emphasize achieving best-in-class competitiveness through continuous improvement, cost control, and asset optimization to ensure high operating rates. A 3-year, $1.5 billion value plan focused on commercial and operational initiatives was completed in 2024. The business strategy also encompasses developing a strategic response to decarbonization challenges, aiming to remain competitive while achieving an appropriate return on required investments. Capital allocation is balanced between funding organic growth, rewarding shareholders consistently, and maintaining flexibility for selective acquisitions, all underpinned by a commitment to a strong, investment-grade balance sheet.

Executive leadership is structured around an Executive Office, comprising the Executive Chairman and the Chief Executive Officer, supported by 9 other Executive Officers responsible for key regions and corporate functions. The Board of Directors consists of 9 members, of whom 6 are independent, ensuring a majority of independent oversight. A Lead Independent Director presides over executive sessions of the independent directors. Board governance is managed through 3 committees: the Audit & Risk Committee, the Appointment, Remuneration and Corporate Governance (ARCG) Committee, and the Sustainability Committee. Both the Audit & Risk and ARCG committees are composed exclusively of independent directors. Governance framework includes a policy limiting independent directors to a 12-year term and a share ownership requirement for non-executive directors (4,000 shares, or 6,000 for the Lead Independent Director) to align their interests with shareholders. The Board conducts an annual self-evaluation to assess its effectiveness and held 7 meetings in 2024 with an average attendance rate of 100%.

The sustainability approach is driven by a commitment to decarbonization and enhanced safety performance. A central initiative is the XCarb® program, which includes offering green steel certificates and a line of recycled and renewably produced steel products to reduce customers' Scope 3 emissions. The company is advancing its decarbonization strategy through two primary technological pathways: Smart Carbon and Innovative-DRI, with pilot projects underway for carbon capture, utilization, and storage (CCUS) and direct electrolysis. In 2024, the company published the recommendations from a comprehensive, third-party dss+ workplace safety audit commissioned to strengthen fatality prevention standards, process safety management, and overall health and safety systems. Employee engagement is measured through a biannual global survey, Speak Up+, which informs leadership on organizational improvements. Governance includes a Joint Global Health and Safety Committee with union representation to oversee and harmonize safety standards across all operations. The company also launched a strategic framework in 2024 to ensure equal opportunity and non-discrimination.

The corporate structure has been shaped by strategic acquisitions, joint ventures, and divestitures. In 2024, the company acquired Italpannelli's businesses in Italy and Spain to expand its construction solutions portfolio and also acquired a 28% stake in Vallourec to increase exposure to the value-added tubular market. This follows the 2023 acquisition of Companhia Siderúrgica do Pecém and the 2022 acquisition of an 80% interest in a Hot Briquetted Iron plant from voestalpine. To support its decarbonization strategy, the company acquired several recycling businesses between 2022 and 2023, including John Lawrie Metals, Alba International Recycling, and Riwald Recycling. A significant divestiture was the sale of its Kazakhstan operations in 2023. Key joint ventures include a partnership with Nippon Steel Corporation (NSC) to own and operate AMNS India, an integrated steel manufacturer, and AMNS Calvert, a steel processing plant. Another joint venture with Hunan Valin, known as VAMA, produces steel for the automotive sector. In 2023, a joint venture was formed with Casa dos Ventos to develop a wind power project. The Mittal family, through a trust, is the Significant Shareholder, holding a 39.88% stake as of December 31, 2024.