ArcelorMittal Krivy Rih

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ArcelorMittal Kryviy Rih

Company Prole


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The worlds number onesteel company

The creation of ArcelorMittal brings together twocompanies with a common vision and a shared philosophy.Both Arcelor and Mittal Steel led the industry towardsgreater consolidation. Both understood that scale,geographic reach and product breadth are vital ingredients

in steel industry success. Both invested heavily in researchand development to produce the next-generation steelsthat would give customers a competitive edge. Above all,the two companies had highly complementary footprintsin the worlds major markets.

The ArcelorMittal signature

Just as an individuals handwritten signature is uniqueto them, the ArcelorMittal signature is unique to thecompany. Designed to suggest the transformationalenergy that characterises ArcelorMittal, the signaturesdynamic and iconic form reflects our leadership positionin the steel industry.


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Today, ArcelorMittal is unique. It is the only truly globalsteelmaker, with 320,000 employees in more than 60countries and an industrial presence in 27 countries.It combines market leadership in the developed marketsof Europe and America with a competitive production

base in developing economies. It enjoys a leadershipposition in technically advanced products. And it benefitsfrom a high level of vertical integration from iron oremining at one end of the value chain to steel servicecentres and distribution at the other.

As ArcelorMittal continues on this path, it will build not

only on the enormous strengths created by the mergerbut help to establish a more sustainable steel company maintaining profitability throughout the variable steelcycles to the benefit of all its stakeholders.


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A unique profile,a clear strategy

Message from Lakshmi Mittal,President and CEO

A new era has dawned for the worldsteel industry. The consolidationprocess of recent years, which was ledin large part by ArcelorMittal and itspredecessor companies, has transformedthe steelmaking landscape creatinga more stable and sustainable marketenvironment. We are proud to haveplayed our role in this process.

We have long believed that size and scaleare vital, both to compete in a globalmarketplace and to manage supply anddemand through the economic cycle.A strong, sustainable industry benefits allits stakeholders employees, customersand investors alike.

Today, ArcelorMittal exhibits not just sizeand scale, but resilience, strength andgrowth. Above all, we have a unique profileand a clear strategy.

Our strategy is to build a sustainable andstable business, creating value through thecycle, through scale and diversification.

At the same time, we want to set thestandard in areas such as health and safetyand career development. We want toengage positively with the communitiesin which we operate and demonstrateour commitment to good environmentalpractise. Our position as the industry leaderdemands no less.

Sincerely,

We are the only truly global steel producer,with a leadership position on fourcontinents. A quarter of our productioncomes from plants that figure amongthe lowest-cost producers in the world.Together with a high degree of exposureto stable markets and long-term contracts,this leaves us well placed to deliversustained profitability and high cash-flowgeneration.

We are the only producer offering anddeveloping the full range of steel products

and services. High-end and specialtyproducts account for more than 60 %of shipments. The breadth of our productrange and the diversity of our customerbase help insulate us from shiftingdemand patterns.

We are not just a steel producer. Atone end of the value chain, we are anintegrated metals and mining business.At the other, we operate a significantservice and distribution business thattransforms finished products anddelivers a bespoke service to customers.Wherever opportunities arise, we areable to capture them.

Today, ArcelorMittal exhibitsnot just size and scale, but resilience,strength and growth.


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Transforming tomorrow:Our philosophy, our values

We know that our position in the steel industry bringsunique responsibilities. We are committed to settingglobally recognized standards with the needs of futuregenerations in mind.

Our goal is to provide the leadership that will transform

tomorrows steel industry.

We have a clear vision of the future, underpinnedby a consistent set of values.


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Sustainability

We are guiding the evolution of steelto secure the best future for theindustry and for generations to come

Our commitment to the world aroundus extends beyond the bottom line,to include the people in which we invest,the communities we support andthe world in which we operate. Thislong-term approach is central to ourbusiness philosophy.


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We look beyond today toenvision the steel of tomorrow

Quality

Because quality outcomes depend on qualitypeople, we seek to attract and nurture thebest people to deliver superior solutions toour customers.


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Leadership

We are visionary thinkers,creating opportunities every day

This entrepreneurial spirit brought usto the forefront of the steel industry.Now, we are moving beyond what theworld expects of steel.


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To maintain and enhance the criticalimportance of health and safety amongour 320,000 employees, a worldwideHealth and Safety Day is held every year.The purpose of the event is to mobilisethe Groups entire workforce includingsubcontractors to improve riskawareness, identify best practiceand promote knowledge sharing inthe health and safety arena.

Safety comes first: the wellbeing of ourworkforce and contractors is our numberone priority. A strong health and safetyculture is instilled at every level of thecompany and is supported by a robust setof safety standards. A continuous reductionin the frequency rate of accidents istargeted year-on-year.

Our health and safety management systemlays particular emphasis on local health andsafety leadership and behaviour. A structureof Group-level and regional health andsafety committees is designed to improve

the flow of new initiatives and support thesharing of best practices throughoutthe Group.

Health and safety

We work hard to ensure thehealth and safety of our people and minimise our impact on theenvironment.


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A worldwide presence

With 320,000 employees in 60 countries,ArcelorMittal spans the globe as no othersteelmaker. It is the industry leader on fourcontinents, ranking number one in all majorcustomer segments.

Our huge reserves of raw materials iron ore and coal span five continents.Many are located close to our steelworks,improving supply logistics. At the other endof the value chain, our worldwide networkof distribution and steel service centresprovides a powerful complement to ourdiversified production base.

Allied to our product breadth, our globalpresence gives us unrivalled capacity todeliver what our customers require.

The merger of Arcelor and Mittal Steelbrought together the leading steelmakerin Western Europe and Latin America withits counterpart in North America, EasternEurope and the CIS, and Africa. That naturalfit is now reflected in a worldwide operationwith leadership on four continents and anindustrial presence in 27 different countries.

That global footprint brings numerousbenefits. Most importantly, it gives us aunique platform from which to serve ourmulti-national customers. With plants

sited close to theirs, we are in a position tosupport their developments wherever theyarise. We can also deliver to them standardsolutions around the globe, assuring themconsistent quality.

The scale and scope of our operationsenhance our ability to compete effectively.Our business units support one another bygenerating product synergies and sharingknow-how. All benefit from the enhancedpurchasing power that comes from beingpart of the expanded Group. All share inthe fruits of our continuous investment inresearch and product development. Andall enjoy access to world markets througha unified export organisation and a globalsales and marketing network.


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Our global production

22 %US and Canada

Percentages indicate geographical breakdownof ArcelorMittal production in 2006

US $88.6billion

09 %Latin America

sales in 2006


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10 %CIS and Central Asia07 %

Africa

118million tonnes of steel

produced worldwide

18 %Central and Eastern Europe

34 %Western Europe


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The future

We will continue to play a rolein building a more consolidated,sustainable steel industry.

A consistent strategy has driven theGroup over many years. We have led theconsolidation of the world steel industryand we will continue to do so. In theprocess, we will not only build on theenormous strengths created by the mergerbut also help cement the new-foundsustainability the industry enjoys.

We now combine a leadership positionin high-end, developed markets withextensive low-cost production indeveloping economies. We are the first

steelmaker with the scale to match thatof our global customers and with thegeographic reach to support them aroundthe globe.

That reach is key. Many of our customersvalue a supplier that can deliver the same,high-quality product in multiple markets.We will continue to build a global platformfrom which we can support them whereverthey choose to operate.

That means expanding our presence indeveloping economies both to serve ourmulti-national customers and to participatein the domestic growth that is forecast formany of those markets.

As important as geographical expansionis continued vertical integration. No othersteelmaker combines the same wealthof upstream assets in coal and iron oremining and low-cost slab production with the breadth of downstream productionand distribution enjoyed by ArcelorMittal.

ArcelorMittal believes this winning strategyhas not only created the market leadingposition enjoyed today, but ideally positionsthe company to lead the steel industry intoa new phase of quality and sustainability.


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A glimpse ofKryviy Rih history

Though Kryviy Rih was developing as araw materials base it is also the city ofmetallurgists, workers of chemical industry,machine builders, workers of food andlight industries. In total Kryviy Rih has65 big enterprises, among them OJSCArcelorMittal Kryviy Rih the largest inUkraine.

Over twenty centuries the ancient landbetween rivers Ingulets and Saksagan servesthe people. Scythian iron was mentionedby ancient Greek poet Aeschylus, it was

highly appreciated by the father of historyHerodotus. That iron was used as a feedfor the rudnyas (smelting furnaces) ofthe Dnieper Cossacks. The last Cossacksataman of Zaporozhskaya Sech, a talentedadministrator, brave warrior, successfulcolonizer of the Dikoye Pole (wild lands)and zealous chief of the Cossacks republicPyotr Kalnyshevsky indicated with surprisingaccuracy the place of the future post stationKryviy Rih, as from the 8th of May 1775 (asper new style) that post station gave birthto the future city rich in iron-ore whose

name originates from the shape of the capeformed by the joining of its two picturesquerivers.

The legendary founder of the contemporarymining and metallurgical center of Ukraineretired cossack Kryviy Rih will stir theimagination of the countrymen for a longtime because the legends live ages. Peopleendowed him with a lot of features whichreflected his feats of arms.

trade relations with Great Britain, Austro-Hungary, Holland, Germany and westernprovinces of Russian Empire, Polish Kingdom.The iron-ore export reached 23 % of theoutput.

Kryviy Rih provided 2/3 of iron-ore outputof Russian Empire due to quite a high laborproductivity of the unfortunate KryviyRih miners, talent of such industrialistsas Rogovsky, Kopylov, Kolachevsky andinvestments of French and Belgian banks.

The rapid development of this iron-ore areawas interrupted by World War I. In 1922,after the October revolution and the endof the Civil War, a competent specialistsaid: Such a phenomenon as a 4 years longperiod of flooding of the whole iron-ore areawhich had been in perfect condition beforeit was involved in the events, became thefirst occurrence in the history of mining.

Kryviy Rih of today is a giant city. Itstretches from the south to the north by126 kilometers while it is only about 20kilometers wide. The administrative division

of the city is as follows: there are sevendistricts, five townships and a suburbantown Ingulets. Together they occupy theterritory of 450 square kilometers.

But the first Kryviy Rih dweller in realitywas Feodosy Kudlyk, Zaporozhsky Cossacksclerk. It was he (and five his unknownsubordinates) who built the post stationon the road connecting Kremenchug andKinburn. Afterwards a village started growingaround that post station. It knew the crueltyof military settlements introduced by thetsar Nikolai and a sleepy township of Khersonprovince (the status of a township wasgranted in 1860). This kind of life of theremote place was drastically changed by afantastic energy of one man AlexanderNikolayevich Pol. That great-grandson of anardent fighter for the right cause, appointedHetman of Ukraine Pavel Polubotok, wasnamed quite in the spirit of that time asColumbus of New Russia and the decisionto erect him a monument in his life-timewas duly discussed at the Nobility Assemblyin Yekaterinoslav. Pol, according to hisbiographer, presented a powerful social forcehimself.

A landlord, far-sighted energetic employerand historian interested in the past history of

Ukraine, ethnographer, archeologist, generousphilanthropist, lawyer and educator of hisregion, Pol became a founder of the industrialiron-ore mining in Kryviy Rih. He initiatedthe construction of Kryviy Rih Donbassrailroad, construction of the bridge across theDnieper in Yekaterinoslav, erection of BryanskMetallurgical Plant and Gdantsevka Ironworks.In 1987 the Kryviy Rih iron-ore area overtookthe Urals iron-ore area in the ore output. Its


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The iron ore mining andbenefication complex

Benefication


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Rolled stock production

The coke and by-product plant

ArcelorMittal Krivy Rih

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