Mittal Steel has operations in Kazakhstan, South Africa and Algeria. It has also agreed to acquire a 37 per cent holding in Hunan Valin Steel Tube and Wire Co in China. Combined shipments in 2004 were 11.9 million tons, compared with 5.1 million tons in 2003. Revenue was $7.6 billion, up from $2.3 billion in 2003. Operating income for the year was $2.4 billion, up from $707 million in 2003.
The Rest of World operations are among the lowest cost, highest margin steel producers in the world, with a highly diversified product and customer mix, and enjoy substantial access to captive raw materials.
Mittal Steel is the largest steel producer in Africa. In 2004, the Group took its holding in Iscor, South Africa’s leading steel producer, above 50 per cent. The move was the culmination of nearly four years co-operation between the two companies. Mittal Steel purchased its first stake in the company in 2001 and subsequently advised on a major cost-saving programme at the South African company in exchange for further shares.
The acquisition of majority control enables Iscor to receive Mittal Steel’s proprietary technology and also access its global marketing and procurement processes. It will enable Iscor to draw on the Group for continued assistance in achieving new efficiencies and cost savings.
Mittal Steel South Africa
Mittal Steel South Africa is Africa’s leading steel producer, with a capacity in excess of 7 million tons per annum. Mittal Steel lifted its stake in the company to a majority shareholding in June 2004. Mittal Steel South Africa has four steel-making operations – Vanderbijlpark Steel and Saldanha Steel (flat products) and Newcastle Steel and Vereeniging Steel (long products). It has access to 8.5 million tonnes a year of iron ore resources through joint ownership of undivided mineral resource, and a procurement contract with the South African mining company, Kumba Resources.
The Vanderbijlpark Steel operations produces 3.5 million tons of liquid steel a year, equivalent to 84 per cent of South Africa’s flat steel requirements. Saldanha Steel is
a state-of-the-art mill commissioned in 1998 with a design capacity of 1.4 million tons per annum. It is the only steel mill in the world to have successfully combined the Corex/Midrex process into a continuous casting chain, making it a world leader in emission control.
In long products, Mittal Steel South Africa exports around 40 per cent of its annual 1.9 million tons of production.
Mittal Steel Temirtau
Mittal Steel Temirtau is one of the largest single-site integrated steel plants in the world, with a steel-making capacity of 5.5 million tons per annum. It is located on the banks of the Nura River, near Temirtau, Kazakhstan. Using basic oxygen furnace (BOF) technology, it is one of the most modern steel plants with its own captive coal, iron ore and power. The company exports about 96 per cent of its output – to some 65 countries.
Mittal Steel Annaba
Mittal Steel Annaba is the largest integrated steel plant in the Maghreb region and is located 12 km south of the city of Annaba, Algeria. It has a steel-making capacity of 2 million tons a year. The plant has its own captive iron ore mines and dedicated port facilities, connected by rail to the plant.
Mittal Steel Annaba’s product range includes hot rolled and cold rolled coils and sheets, hot dipped galvanised products, tin plates, wire rod, rebar and seamless tubes. With a strong hold on its domestic market, the company exports its output to other Maghreb countries, Europe, the Middle East, China and South East Asia.
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