On June 3, ArcelorMittal (MT)—the largest steelmaker globally—hosted an investor event. The event was focused on the automotive industry. In this part of the series, we’ll analyze the key highlights of this investor event.
Please note that ArcelorMittal is the largest steel supplier to steel companies. In 2014, it shipped 13 million tonnes of steel to the world’s leading automakers. AK Steel (AKS) is the leading supplier to US-based automakers. More than half of AK Steel’s steel shipments are to the automobile industry.
The above chart shows ArcelorMittal’s automotive strategy. As you can see, this strategy has four pillars. First, ArcelorMittal is developing new products and solutions to serve the automobile industry. Almost one-third of its R&D (research and development) budget is allocated to the automotive sector. It developed several patented high strength steel products to serve the automobile industry. We’ll discuss some of these products later in this series.
Another pillar of ArcelorMittal’s automobile strategy has been to make its existing products available at all of its manufacturing facilities. It has an industrial presence in 22 countries spread across four continents.
Although ArcelorMittal has global operations, three-fourths of its revenue comes from the developed markets of Europe (VGK) and North America. Now, ArcelorMittal is also focusing on the emerging markets to expand its automotive solutions. In the next part of this series, we’ll discuss the recent developments in this space.