ArcelorMittal Finds Unlikely Success in French Rust Belt - Nasdaq
FLORANGE, France--As ArcelorMittal, the world's biggest steelmaker, looks to downsize in the U. S. , it has an unlikely model for industrial success: Europe. The European Union, for all its turmoil, is still the world's most prestigious automotive market, where companies led by Germany's Audi AG and BMW AG make almost a trillion dollars worth of cars annually. To win a bigger share of the auto-making business, ArcelorMittal invested heavily in developing new, lighter-weight forms of steel and building galvanizing lines, even as it closed nine European steel mills. The company is also developing new approaches to make it less reliant on the industry's traditional one-stop-shop integrated mills. By pushing forward in automotive, even in economically troubled locales like Florange, ArcelorMittal has cemented its 50% share of the European auto market. And success in the European rust belt, even if not guaranteed to continue, offers an example for the troubled steel industry at a time of crisis. In the second quarter, with iron ore and steel prices falling, ArcelorMittal, which makes 6% of the world's steel, said its sales fell 18% to $16. 9 billion from $20. 7 billion a year ago. Source: www.nasdaq.com
