The Mittal Steel Company, owned by Mr. Lakshmi Mittal, is the largest steel producer in the world. The company became a part of ArcelorMittal, a merger between Mittal Steel and Arcelor. How L.N Mittal formed this company and became one of the most remarkable Indian steel magnates of this time is an awestruck story worth reading.
Story of Lakshmi Mittal
Lakshmi Mittal was born in a small village in Rajasthan, India. He got his early education in native school and later on went to England for pursuing higher studies. Since his childhood, Lakshmi has been an avowed flier and traveler. Even in the present, he travels 350000km, a year spanning 14 countries.
He travels because his empire is spread throughout the world. He manages his empire that employs some 165000 workers.
Laxmi Mittal is one of those entrepreneurs who dream and try to fulfill those dreams. In India, he is better known as the richest Indian but in the world, he is known as the person who has chased only one dream with firm three termination and single-mindedness that was to create a new architecture for steel business.
He started off by acquiring loss-making steel mills across the world & made them profitable, using the strategy of ‘Turnaround’ to build his empire. Now 43 years later, he owns the world’s largest steel and mining company, ArcelorMittal. His company produces more steel than the whole of the US and the UK, combined. And earns more revenue than major companies like Facebook, Unilever, and FedEx.
He has been crazy about buying and acquiring one steel firm after another. He took over an oiling plant in Indonesia to his biggest but the international Steel Group (ISG) in the U.S.A. after buying (ISG) in 2004 he emerged as the biggest steelmaker in the world. He bought ISG on October 1, 2004, and presented it to his father who was in Tirupati as a birthday gift from a son. He is the world’s biggest steelmaker and one of the top billionaires.
History of Mittal Steel Company
Mittal Steel Company was originally 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 the International Steel Group. In 2005, the company acquired Kryvorizhstal. In 2005, the company announced an 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.
Business Empire of ArcelorMittal
ArcelorMittal is a major steel supplier for General Motors & Ford. He produces 70 million tonnes of steel every year. Not only that, but a whopping 20% of all global car production is also made from ArcelorMittal steel. Their steel has also been used in major US landmarks like One World Trade Centre, Rockefeller Center, the New New York Bridge, and even in high-tech submarine-like USS Indiana, Navy ships. The largest US-built containership DKI and also aircraft carriers. Not only that, but New York’s iconic Empire State Building was also made from structural steel supplied by ArcelorMittal’s predecessor company, Bethlehem Steel.
Global Business Expansion of ArcelorMittal
- Antarctica: In Antarctica, ArcelorMittal steel has been used in the construction of the world’s first zero-emission polar research station, Princess Elisabeth Antarctica. Moreover, the group has also manufactured steel for an under-construction 156m-long Antarctic Supply Research Vessel.
- Canada: Here the group owns one of Canada’s largest steel plants. Moreover, the group also operates 6 more production facilities, an iron ore mining plant at Mont-Wright, runs a 420-kilometer long railway line, and also operates Canada’s largest private port, Port-Cartier.
- United States: The ArcelorMittal group owns North America’s largest integrated steel plant in Chicago and the world’s most productive steel mill in Cleveland. Which was even visited by the former US president. Overall, in the US, ArcelorMittal operates over 20 manufacturing facilities, Iron Ore and Coal Mines in Virginia, and employs over 18,000 people, around two times more than how many people Yahoo employs.
- Mexico: Here the group operates six steel manufacturing units, iron ore & coal mines, and is also the largest employer in the port city of Lazaro. The second-largest cruise ship in the world, the Harmony of the Seas. The gigantic ship has 2,700 staterooms, 20 restaurants, 23 swimming pools, and yes, this whole cruise is also made from ArcelorMittal Steel. Taking about ships, the group also operates a shipping company and owns a fleet of large Panama bulk carriers.
- South America: Here, ArcelorMittal operates five long steel manufacturing plants and holds a whopping 60% market share in nearby Brazil. The group is involved in Iron ore mining and also operates 27 steel production facilities. In Brazil, ArcelorMittal steel has been used in an Olympic Stadium, a football stadium, and a Bridge in Rio de Janeiro.
- The group's expansion is also rooted in other countries like Africa, Europe, France, London, India, China, etc.
Moreover, in Europe, ArcelorMittal is the largest foreign investor in Ukraine and Bosnia & is also the largest steel producer in Spain, Czech Republic, Poland, Romania. And the group is Luxembourg’s largest private employer.
Not only that, but Lakshmi Mittal's company also operates charity foundations in Brazil, Argentina, Liberia and has even contributed to flooding relief in Bosnia. Lakshmi Mittal has certainly created an incredible conglomerate and has traveled a long way from a small village in Rajasthan.