Last year, I began my message to our stakeholders in this
report by acknowledging that 2015 was a challenging year for ArcelorMittal and
for the steel and mining industry around the world. This year, I begin this
message with a renewed sense of optimism in the state of our business and our
industry. Since the latter part of 2008, our industry has weathered the worst
economic times in more than 15 years. Though our industry remains challenged by global structural overcapacity, primarily in China, today we look ahead to an innovative, strong future.
ArcelorMittal’s business in the United States has performed
admirably in the challenging times of the past few years. Our team has worked
diligently to ensure our business is resilient, agile, lean, and positioned for
success in the future. In 2016, our business underwent significant transitions.
We spent the year undergoing important strategic restructuring in our
operations, setting our business on course for a stronger future. The work
completed last year is quickly showing signs of positive impact and realized
At the heart of our business changes in 2016 was building
long-term financial sustainability for ArcelorMittal in the United States. But
for ArcelorMittal USA, sustainability extends far beyond our bank account. To
that end, ArcelorMittal is proud to enter our third year under the global
sustainability framework of our 10 sustainable development (SD) outcomes.
Launched in 2015, we continue to work to set goals, develop processes, and
operationalize these outcomes in our business.
I am proud to continue our commitment to excellence in
sustainability reporting and transparency with our second annual integrated
report in the United States. This document, and the strategy it details,
directly connect the work of our 10 SD outcomes with our operations’ goals and
business strategy. For our business, sustainability must deliver long-term value for all our stakeholders.
Our performance in 2016
As you navigate our second annual integrated report, I know
you’ll learn a great deal about our sustainability initiatives as well as key
financial and market environment information driving our success. Allow me to
highlight a few key areas of challenge and opportunity:
- Safety of our people
I remain committed to setting a tone at the top of vigilance
and zero tolerance as it relates to health and safety initiatives. We reported
a lost time injury (LTI) rate of 1.24 in 2016. This number includes employees
and contractors for ArcelorMittal USA LLC and AM/NS Calvert facilities. While
this rate is an improvement over 2015, our team will not rest until we create a
zero accident workplace. We can and must do better.
Building momentum in our business
The aforementioned structural improvements in our USA
business in 2016 would not have been possible without the dedication and
expertise of our business leaders at every level in the United States. From our
operations management teams in every facility to our steelworkers, sales and
marketing leaders, and many, many more. Each of our more than 18,000 employees in the United States
contributed to building important momentum in our business in 2016.
Investing for the future
The structural improvements we made to our USA footprint
directly support our global Action 2020 initiative launched in early 2016. We
are now ahead of our Action 2020 targets, earning the confidence of our
corporate leadership and resulting in increased investment needed to capture
market growth opportunities in 2017 and the coming years.
Protection of our natural resources
Ours is a resource intense business. The responsible
management of those resources requires constant collaboration among our
teams. Each day, operations teams work with environmental leaders to achieve
our compliance goals. The work we do both inside and outside our facilities in
the Great Lakes is just one example of our commitment to environmental
excellence. In the United States, we withdrew 906 million m3 of water for our
operations. A large percentage of that water comes from Lake Michigan and Lake
Erie. Of that, 70 percent is non-contact and returned to its source - often
cleaner than when withdrawn. When I stand on the shores of Lake Michigan, I see
more than resource management. I see a commitment to environmental excellence
and the resilience of our water sources everywhere.
In closing, I look forward to working with our stakeholders
internally and externally to ensure ArcelorMittal’s future in the United States
remains optimistic and the domestic steel industry remains healthy. Though 2016
began what we hope will be an upward trend in our business and
industry, we know there are still significant challenges to face in the future
together. Our entire team at ArcelorMittal is committed to delivering value
across the enterprise. Being a sustainable business leader is a major step in
the direction of that goal. Thank you for your interest and continued
partnership in this journey.
President and CEO