Mittal Steel Company
|Founded||1989 as Ispat International in Sidoarjo, Indonesia|
(Chairman & CEO)
|Products||Steel, flat steel products, coated steel, tubes and pipes|
|Revenue||28.132 billion USD year to 31 December 2005|
|$4.746 billion (2005)|
|$3.365 billion (2005)|
Number of employees
CEO Lakshmi Mittal's family owned 88% of the company. Mittal Steel was based in Rotterdam but managed from London by Mittal and his son Aditya. It was formed when Ispat International N.V. acquired LNM Holdings N.V. (both were already controlled by Lakshmi Mittal) and merged with International Steel Group in 2004. On 25 June 2006, Mittal Steel decided to take over Arcelor, with the new company to be called ArcelorMittal. The takeover has been successfully approved by shareholders and directors of Arcelor making L.N. Mittal the largest steel maker in the world.
It was formed as Ispat International in 1978, at the time it was part of the Indian Steel making company Ispat Industries which was founded by Lakshmi Mittal's father and was owned by his family, but in 1995 it separated from that company after various disagreements between Lakshmi and his father.
In 1989, the company acquired Iron & Steel Company of Trinidad & Tobago. In 1992, the company acquired Sibalsa. In 1994, the company acquired Sidbec-Dosco. In 1995, the company acquired Hamburger Stahlwerke, which formed Ispat International Ltd. and Ispat Shipping, and also bought Karmet Steel of Temirtau, Kazakhstan. In 1997, the company acquired Walzdraht Hochfeld GmbH and Stahlwerk Ruhrort. In 1997, the company went public as Ispat International NV. In 1998, the company acquired Inland Steel Company. In 1999, the company acquired Unimétal. In 2001, the company acquired ALFASID and Sidex. In 2002, it bought a majority stake in Iscor. In 2003, the company acquired Nowa Huta.
In 2004, the company acquired Polskie Huty Stali, BH Steel, and certain Macedonian facilities from Balkan Steel. In 2005, the company hired Deloitte as the primary auditors for the company. In 2005, the company acquired International Steel Group. In 2005, the company acquired Kryvorizhstal. In 2005, the company announced the investment of $9 billion in Jharkhand, India. In 2006, the company merged with Arcelor after much controversy. In 2006, the company announced investment for a 12 million tonne capacity steel plant in Odisha, India.
"The steelmaking on which Mittal built his fortune is a polluting process. Altogether a toxic mix of more than 100 chemicals is known to be emitted by steel mills. Recent Canadian research has shown that this mix not only affects all forms of life around the mills, but goes down to the genetic level in the form of hereditary DNA damage. In the case of the Vanderbjlpark steel works liquid wastes from Iscor were pumped into unlined evaporation dams. Much of the effluent found its way underground, carrying a load of undissolved and some toxic substances such as cadmium. According to chemical professor Phillip Lloyd, “By the late 1950s it was apparent that the polluted water was escaping from the property and threatening the neighbours, mostly small farmers who depended on underground water for farming and domestic use”. (Lloyd, 1999: 26)According to an anonymous Iscor insider/whistleblower, “Iscor management manipulates the results of water tests. “They show themselves to be concerned but what they say and what they do are very different things... pollution is not a high priority. Lots of data is available but is not being utilised. Nothing is being implemented. Good quality Vaal water is used to dilute the water (used in the production process) so as to comply with the Water Act permit.”(Carte Blanche programme) According to ecologist Pieter van Eeden, Iscor is “not serious about environmental issues. I told them, “we’re not only making steel, we’re killing people as well.”<Cook,2006. Sociology Department, University of the Witwatersrand, Johannesburg, South Africa. ></ref>
Bids and acquisitions
In October 2005 Mittal Steel acquired Ukrainian steel manufacturer Kryvorizhstal for $4.8 billion in an auction after a controversial earlier sale for a much lower price to a consortium including the son-in-law of ex-President Leonid Kuchma was cancelled by the incoming government of President Viktor Yushchenko.
In 2005 Lakshmi Mittal flew into Jharkhand, India to announce a $9 billion investment to build a greenfield steel plant with a 12 million tonnes per annum production capacity.
On 27 January 2006 it announced a $23.3 billion (€18.6 billion, £12.7 billion) bid for Arcelor. On 19 May 2006 Mittal increased its offer for Arcelor by 38.7% to $32.4bn, or $47.34 per share (€25.8bn, €37.74 per share). On 25 June 2006 Arcelor, in a board meeting announced that it has accepted a further sweetened offer ($50.68 or €40.4 per share) and the new company would now be called ArcelorMittal, thus successfully ending one of the most controversial and publicised takeover bids in modern corporate history. ArcelorMittal is now by far the largest steelmaker in the world by turnover as well as volume, controlling 10% of the total world steel output.