2003 Final Term Paper of Creativity

8/8/2019 2003 Final Term Paper of Creativity

1/27

Term Paper

Of

Creativity and innovation

Submitted to: Submitted by :

Rajeev Gupta sir Ankur Sharma

LSB Reg. no. 7020070055

Roll no. R17B2A36


2/27

About ArcelorMittal :

ArcelorMittal is the world's leading steel company, with operations in more than 60 countries.

ArcelorMittal is the leader in all major global steel markets, including automotive, construction,

household appliances and packaging. They have the leading R&D and technology and a huge

and very effective distribution networks.

They are presence in over 60 countries and 4 continents. ArcelorMittal covers a huge market

share of steel market. Sustainability, Quality and Leadership is the core values of ArcelorMittal.

They commits to operating in a responsible way with respect to the health, safety and wellbeing

of its employees. ArcelorMittal is the official steel supplier for London Olympic 2012.

About Arcelor :

Arcelor was founded through the merger of Arbed (Luxembourg), Aceralia (Spain) and Usinor(France). The three European groups were determined to mobilise their technical, industrial, and

commercial resources in order to create a global leader in the steel industry.

The merger was officially launched on 19 February 2001 and the choice of the Arcelor name was

announced on 12 December 2001. The merger became effective on 18 February 2002 when

Arcelor shares were listed on several stock exchanges.


3/27

About Mittal steels :

Mittal Steel's growth was founded on a consistent philosophy, that to be able to deliver the range

and quality of products customers demand the modern steel maker must have the scale andworldwide presence to do so competitively. The group was formed when two sister companies in

the Mittal family, LNM Holdings and ISPAT International, were merged to form Mittal Steel in

2004.

Objectives of the study:

To know about of ArcelorMittal company.

To know about the innovation and R&D process of ArcelorMittal company.

To know that how many sectors ArcelorMittal company deals his business i.e.

automotive, construction, household appliances and packaging, mining etc.

Review of literature :

1.Birth of ArcelorMittal and after :

Abstract: With merger of Mittal Steel with Arcelor, Laxmi Mittal created the largest steel maker

in the world. The merger was not smooth. The process displayed how the acquisition price could

be vastly increased benefiting the shareholders of the target and how some defense mechanisms

can backfire. It also had fair share of suspense arising from counter bid and some international

intrigue. This teaching note introduces students to the common features of transborder

acquisitions and some not very common features that come up only in wedding of behemoths.

2. The Myopic Industrialization of Orissa: Arcelormittal's 'Greenfield' vis-a-vis Peoples

Green Fields: :

Abstract: The natural resources of Orissa coupled with the governments new found industrial

fervor has in the recent past seen large corporations of mostly a particular hue make a beeline for

the state. In this fast burgeoning state of affairs, the latest entrant is the worlds largest steel

company Arcelor-Mittal. This paper is a modest endeavour to highlight the ill effects ofindustrialization on the people of Orissa with special reference to Arcelor-Mittal's Greenfield

project in Keonjhar district. In order to emphasise the lack of, and as a corollary a need for, a

comprehensive policy on development (or industrialization: there being no difference between

the two in the quotidian sense at least) an effort has been made to draw attention to its negative

ramifications. However, implicit in this picture, I believe, are the contestations that will need to

be settled if we are to arrive at a comprehensive, inclusive and equitable process of industrial


4/27

development. One such unsettled and arguably definitive issue is that of displacement, which

almost all developmental or industrial activity invariably entails. The vacillating position of

government on this issue has led to widespread disenchantment, which is now manifested in not

only peaceful resistance but also by an upsurge in insurgency the rise in Naxal influence to

be precise. It has also been added in the paper, that irrespective of which side of the development

divide one stands on, one might even consider the idea of an acceptable to all development

paradigm as an impossibility: unless of course, both the theory and praxis of development is in

some way severed from industrialization, and therefore radically altered.

3. ArcelorMittal's Mining Project in Liberia: Balancing CSR and Financial Returns:

Abstract: In 2006, the Liberian government began a review of all concession contracts awarded

by the previous interim government. Among the contracts under review was a Mineral

Development Agreement for an abandoned iron ore mine signed in August 2005 with Mittal

Steel Co., which, in 2006, was in the process of merging with Arcelor SA. Given the delays,

infrastructural hurdles, and the government's scarce administrative resources, ArcelorMittal wasnot certain that the contract was worth renegotiating. However, the investment fit ArcelorMittal's

long-term expansion strategy, and the company would incur losses on the project if it turned

back. Furthermore, refusing to renegotiate might have negative implications for the company

from the corporate social responsibility perspective.

4. An Overview Of Ladle Free Open Performance At Arcelormittal Brasil Monlevade :

Abstract: ArcelorMittal Monlevade is an integrated plant with sinter plant, blast furnace, BOF,

ladle furnace, continuous caster, and rolling mill, with a capacity of 1.2 million tpy. During the

last years, Monlevade has been raising the ladle free open index through refractory qualityimprovement and standardization of operational parameters. The main actions were changing of

the geometry of ladle well block and nozzle, use of two-layer sand, and control of sand residence

time before BOF tapping. Based on these facts, the ladle free open index has increased from 98.5

to 99.8% from 2002 to 2006.

5.Mittal Steel in New Liberian Government Review Process:

Abstract: Cleary Gottlieb represented Mittal Steel in the review by the new Government ofLiberia of the mining development agreement signed in August 2005, which gave Mittal accessto about 1 billion metric tons of rich iron ore reserves in Western Liberia.Following the election

of Ms. Ellen Johnson Sirleaf to office in November 2005, the new Government of Liberia, whilerecognizing the validity of the contracts signed by the predecessor transitional government,launched a review process involving all significant investor agreements. Mittal agreed tocooperate with this review process. The parties eventually engaged in long and strenuousrenegotiations of certain matters regarding allocation of ownership and control rights overexisting infrastructure, tax and customs treatment, guarantee of project execution and project-related environmental obligations. An Amendment to the mineral development agreement wassigned in Monrovia on December 28, 2006. The Amendment, which remains subject to


5/27

ratification by the Liberian Legislature, confirms the parties commitment to the project, withMittal expected to invest more than $1 billion over the life of the project for mine development,related railway and port infrastructure and community development.

6. Mittal Steel and Corporate Governance,The New Art of Empire Building:

Abstract:This paper examines the growing importance of corporate governance as a weapon ininternational hostile takeovers. It is variously used as a public relations too, legal device, and as a

focus for shareholders considering swapping allegiances to new boards. Whilst the recent

international literature has focused on the convergence, or persistence, of national models, the

current machinations played out by Mittal Steel's bid for the European behemoth, Arcelor

effectively leapfrog these arguments, and produce truly international dimensions for corporate

governance, as it plays out in the heat of battle. The resort to corporate governance, as an

internationally recognized source of business ethics, with its own currency and validity, marks

new ground in the internationalizing of governance concerns for global firms. This paper

recounts these issues through the prism of the Mittal deal, and makes some observations about

how, in a post-modern and global environment, these effects are likely to evolve in the next

decade.

7. Cold Steel: The Multi-billion-dollar Battle for a Global Industry:

Abstract: COLD STEEL is the gripping story of the world's biggest and most hard-fought

industry takeover of recent years, an epic corporate battle that would send shockwaves through

the political corridors of Europe, excite the world's financial markets, enrich thirty hedge funds

and transform the global steel industry. In 2006, the two largest steel-producers went head to

head in a bitter battle for total market domination. Lakshmi Mittal, a Calcutta-born industrialist

who had raised himself up from humble beginnings to become the world's fourth-richest man,

proposes a friendly merger with rival Arcelor, a pan-European company whose interested parties

include the governments of Spain, Luxembourg and Belgium. Arcelor's mercurial CEO,

Frenchman Guy Dolle, firmly refuses, and the scene is set for a massive hostile takeover

involving billions of dollars of finance, government and shareholder manoeuvring, and

accusations of jingoism and double-dealing. Fast-paced and electrifying, COLD STEEL brings

to life the cut and thrust of big business at war.

8.Technical Efficiency in the Iron and Steel Industry:

Abstract: In this paper we examine the technical efficiency of firms in the iron and steelindustry and try to identify the factors contributing to the industrys efficiency growth, using atime-varying stochastic frontier model. Based on our findings, which pertain to 52 iron and steelfirms over the period of 1978-1997, POSCO and Nippon Steel were the most efficient firms,with their production, on average,exceeding 95 percent of their potential output. Our findingsalso shed light on possible sources of efficiency growth in the industry. If a firm is governmentowned, its privatization is likely to improve its technical efficiency to a great extent. A firmstechnical efficiency also tends to be positively related to its production level as measured by a


6/27

share of the total world production of crude steel. Another important source of efficiency growthidentified by our empirical findings is adoption of new technologies and equipment. Our findingsclearly indicate that continued efforts to update technologies and equipment are critical to thepursuit of efficiency in the iron and steel industry.

9. ArcelorMittal: Going nowhere slowly. A review of the global steel giant's environmental

and social impacts in 2008-2009:

Abstract: The new report ArcelorMittal Going Nowhere Slowly: A review of the global steelgiant's environmental and social impacts in 2008-2009 reviews the companys environmentaland social impacts during the year since the coalition published its first report onthecompanyinMay2008. The new report includes case studies from Bosnia-Herzegovina, theCzech Republic, India, Kazakhstan, Liberia, Romania and South Africa. In addition to pollutionproblems from existing plants the report includes case studies on two new planned investments.ArcelorMittals plans to build two giant steel mills in the Indian states of Orissa and Jharkand are

heavily opposed by local tribal people, who would be displaced from their land. In Romania, thecompany is planning to participate in the controversial Cernavoda 3 and 4 nuclear reactors usingCandu-6 technology, which critics such as Greenpeace claim is outdated and dangerous.

10. Experience of teachers in steel mill learning :

Abstract: Part of a larger study on the experience of teaching in the steel mill learningenvironment was an inquiry focused on professional development. Teachers and coordinatorswere all members of the Teachers Action Research Group for Educational Technology(TARGET), a group of adult educators interested in improving learning and teaching in careerdevelopment programs in steel mills. Data collection methods included interviews with two menand seven women, observations of classroom dynamics, and a review of documents generated byTARGET. Interviews concerned interviewees' perceptions of their own professionaldevelopment. Findings indicated no participant had any academic preparation in adult education;they arrived at their current positions almost accidentally; they seemed to possess a markedflexibility in relation to their careers; all exhibited a sense of mission for their programs and afairly sophisticated sense of the possibilities of adult education; they recognized the need forcareer development centers to undo the bad educational experiences of workers; all coordinatorsworked to establish the centers as a safe space, an idea that carried over into offerings; learningthe job and becoming a part of the culture were important parts of professional development and professional identity; professional commitment and renewal took many forms, includingparticipation in national conferences, university classes, self study, and networking.

11. ArcelorMittal to bid for China Oriental:

Abstract: ArcelorMittal, the world's largest steelmaker, said Friday it will offer at least $1.65billion for the remaining shares in China Oriental Group Co. that it does not own after a rulingby Hong Kong's securities regulator. But an analyst said Beijing was unlikely to give its approvalfor foreign majority ownership in such a strategic sector of the Chinese economy as steel.ArcelorMittal said it would offer at least 6.12 Hong Kong dollars ($0.79) a share, the same price


7/27

it paid for a 28.02 percent stake, or 820 million shares, in the Chinese steelmaker last month,according to a statement posted on China Oriental's Web site.

That would bring the total offer price for the remaining 2.1 million shares to at least HK$12.9billion, or $1.65 billion. The Luxembourg-based steelmaker said it would maintain China

Oriental's listing on the Hong Kong stock exchange. The purchase would still need to beapproved by China's communist leadership, which has strict rules on foreign majority ownership.

12. Steel Industry - Dangote Urges FG to Review Relevant Laws:

Abstract: The Federal Government had been enjoined to review all relevant existing laws,policies and regulations, for revitalization of steel industries across the country in order to boostthe economy. The group Executive Director, Business Development, Dangote IndustriesLimited, Mr. DVG Edwin, gave the charge when the House of Representatives Committee onprivatization and commercialization led by its chairman, Hon, Abass Braimoh visited the steelcompany over the weekend in Osogbo to assess the level of preparation for the take off of the

Company before the end of the year.

13. Sustainable development and cleaner production in iron and steel industry of China:

Abstract: The present paper briefly reviews the development status of iron and steel industry inChina and the development trends of the world iron and steel industry. The sustainableelevation of business market competitiveness and environmental benignity is thefundamental intension of achieving sustainable development in iron and steel industry. Theboth form a comprehensive target system which includes: product cost/ price, quality /kind,fund returning rate, ability and sources for service system/energy intensity and efficientcirculation of materials, inequity, etc. On the basis of reviewing the practical achievements

of energy conservation, reducing consumption, decreasing pollution and increasingefficiency by structural readjustment and execution of cleaner production in Chinese ironand steel industry in recent years, and by incorporating the international trend ofdevelopment, it also discusses the future direction of cleaner production in the industry andproposes the short-term targets for cleaner production.

14. Investigation to Erosion-Corrosion Behavior of Stainless Steel and High Carbon Steel:

Abstract: The erosion-corrosion behavior of 1Cr18Ni9Ti (designated as 18-8) steel and highcarbon steel (mass fraction of carbon is 08%, designated as T8) was investigated via self-made liquid-solid two-phase flow erosion-corrosion tester. The electrochemical measurement

system fixed on the tester could separate the pure corrosion rate and the pure erosive rate fromthe total erosion-corrosion rate effectively during the wear tests, so the interaction betweencorrosion and erosion of the materials could be obtained. The results show that 18-8 steels whichhas a superior corrosion resistance to T8 steel represents a good erosion-corrosion resistanceunder different test conditions such as different erosive angles, different erosive velocity anddifferent slurry temperature. This means that the corrosion resistant properties of the materialsplay an important role under the test conditions. The erosion-corrosion resistance of 18-8 and T8steels is reduced to absolute inferiority while the erosion angle is set up as 45.The reason is that


8/27

the values of pure erosive rate and interaction rate of both reach the maximum simultaneously atthis angle, thus more attention must be paid for the wear resistance of the materials under thissituation.

15. 40,000 acres of land being acquired for steel plants of ArcelorMittal :

Abstract: That giant steel manufacturers are expected to set up base in Karnataka is now certaingiven the fact that they have remitted to the State Government a major part of the money thatthey have to pay towards the cost of land acquisition.Sources in the State Government told TheHindu here on Monday that the steel manufacturers have sought lands in the districts of Bellary,Gadag, Bagalkot, Haveri, Raichur and Koppal, and several taluks of all these districts are knownfor iron ore deposits. Each of the steel units have sought between 1,000 acres to 5,000 acres ofland.

Chief Minister B.S. Yeddyurappa, who is keen on banning iron ore exports from the State, ishimself closely monitoring the implementation of the memorandum of understanding signedwith the steel manufacturers and others during the Global Investors Meet held some time ago.The State Government is stated to have constituted a high-level committee under the leadershipof Chief Secretary S. V. Ranganath and Principal Secretary, Department of Commerce andIndustries, V.P. Baligar to hold a regular review with the firms and serve as a facilitator to theirrequirements. It is a weekly review with them.

ArcelorMittal and Brahmani Steels (floated by the family of Minister for Tourism G. JanardhanReddy) are being provided with lands in Bellary taluk and both of them have each sought about4,000 acres. The Government has now issued the final notification for the acquisition of these

lands and the two companies have been asked to pay the total amount for the lands beingacquired for them by the Karnataka Industrial Areas Development Board. While ArcelorMittalhas so far deposited around Rs. 350 crore, Brahmani Steels has deposited Rs. 270 crore and hasbeen asked to pay another Rs. 57 crore for the total cost.


9/27

Orgizitional chart of ArcelorMittal :


10/27

Qus. 1. What is therein these companies which makes them most innovative? (In terms ofculture, policies, human resource etc.) ?

General Philosophy of ArcelorMittal:

ArcelorMittal core philosophy is to produce Safe, Sustainable, Steel . Safety is the Company's top priority. Companys safety performance has improved

consistently over the last three years, most recently by 25% in 2009, and they willcontinue to target the ultimate goal of zero accidents.

The Company's leadership position in the steel industry is the result of a consistentmanagement strategy that focuses on product diversity, geographic reach and verticalintegration - both into raw material production, designed to minimize risk caused byeconomic cycles, and downstream distribution, providing value-added and customizedsteel solutions through further processing to meet specific customer requirements.

customers are the heart of their business. They collaborate closely with them to ensurethat they evolve and develop the products in line with their continually changing needs. ArcelorMittal is committed to its promise of 'transforming tomorrow' and the three values

that underpin it - Sustainability, Quality and Leadership. These values shape theirbehavior. They recognize that the Company has a duty to its stakeholders to operate in aresponsible and transparent manner and to safeguard the wellbeing of all its stakeholders,including employees, contractors and the communities in which it operates.

They have a strong focus on Corporate Responsibility. This is evidenced in numerousareas, for example the Company's efforts to develop breakthrough steelmakingtechnologies, company leadership of the steel industry's Ultra Low Carbon Steel(ULCOS) programme and the global activities of the ArcelorMittal Foundation.

Working Enviornment in ArcelerMittal :

Work environment free of harassment and discrimination:

ArcelorMittal is committed to providing a work environment that is free of any

form of sexual or other harassment, whether it is harassment by an employee of

another employee or harassment by an employee of a customer or supplier or

vice-versa.

ArcelorMittal is committed to ensuring that each one of us is treated with fairness

and dignity; accordingly, any discriminatory practice based on race, color, sex,age, religion, ethnic or national origin, disability or any other unlawful basis will

not be tolerated. The Company seeks to provide each of employees with equal

opportunity for advancement without is crimination.

An employee who believes he or she has been the victim of, or a witness to, a

situation involving harassment or discrimination should immediately report that


11/27

situation to the head of the Legal Department. All such reports will be treated in

confidence.

ArcelorMittal permits family members of existing employees to work for the

Company, provided that they are evaluated and selected objectively and on the

basis of the same criteria as other candidates and provided that their respectivepositions will not be potentially in conflict or collusion.

Occupational Health and Safety:

ArcelorMittal makes every effort to provide employees with a healthy and safework environment, to conduct regular inspections so as to eliminate anydangerous conditions or behavior and their causes, and to develop programsdedicated to the safety and well-being. They must abide by the Company'sstandards in safety matters, do our part to maintain a healthy and safe workenvironment and take the necessary steps to ensure our own safety and the safety

of others.

Respect for the Environment:

Respecting and protecting the environment is an important value to whichArcelorMittal subscribes. They must comply at all times with the environmentallegislation applicable to ArcelorMittal, and they have an important role to play inimplementing the guidelines issued by the Company in this regard.

Environment for employees :

During the 1990s they reinvented and expanded their view of opportunity to one based onglobal competitiveness, sustainable growth, and shared success with their customers,shareholders, and employees. their employees are the key to realizing these opportunitiesand, as a result, they take pride in providing careers that offer both personal andcorporate.

At ArcelorMittal Dofasco, they work in multi skilled teams and provide each employee

with opportunities to explore challenges as they arise. Through their countless rewards,

innovations, and community prospects, they are offering you the chance to gain

experience, create your own opportunities, and build an exciting career.

Sharing the Rewards :

ArcelorMittal provides attractive compensation opportunities.


12/27

Their philosophy relating to compensation and benefits goes beyond thetraditional elements of pay and benefits. Company strive to leverage otherindirect reward elements, such as providing opportunities to learn and grow, towork in a stimulating and multi-cultural work environment, to switch betweenfunctions and countries, and to engage in multi-disciplinary task forces.

What is the Compensation Strategy?

Compensation and benefits are designed to:

Motivate managers toward achieving company goals, increasing efficiency and realizinggrowth opportunities;

Encourage continuous development of skills and competencies needed to helpArcelorMittal achieve its desired strategy;

Retain individuals who consistently perform at expected levels of performance andcontribute to the success of the organization and its changes;

Signal, through the pay for performance process, the need for improvement to managers

who do not perform up to company standards.

Core value in ArcelorMittal:

Sustainability is one of ArcelorMittal core values, and absolutely integral to our overall

vision to transform tomorrow. We know we operate in a sector that can have a

significant impact on the environment, which means we have an even greater


13/27

responsibility to make sure we use resources wisely, and manage our waste and

emissions effectively. Complying with environmental regulations is just the start: in

our performance we aspire to excellence.

The challenge is that they have to do this in the context of an ongoing, and indeed growing,

demand for the steel they produce. Steel is one of the building blocks of the world economy, andis helping to fuel much-needed growth and development in emerging markets. they have to find away to supply that demand today, while protecting the environment for the future.

They have one advantage on their side, and that's the fact that steel can be 100 percent recycled,over and over again. So even if steel production is carbon-intensive, it has immense potential asan environmentally-friendly construction and manufacturing material, which puts us in a pivotalposition to help drive the sustainability agenda.

Working experience at ArcelorMittal : vision of ArcelorMittal :

Our Vision

ArcelorMittal is an entrepreneurial company. Theyencourage innovation and leadership within a culture that places great emphasis on personal development. theirapproach is to work together through:

Accountability - Management at each operation is held accountable for running thebusiness and delivering results.

Open communications within a team approach - Openness and the sharing ofinformation across functions and geographic boundaries are encouraged: the value ofdiverse ideas is recognized.

Empowerment - Those closest to the point of action are encouraged to make decisions.Managers are responsible for building the skills of their teams. Individuals perform bestwhen they self-manage and delegate effectively.

Continuous improvement -Constant learning is supported by the Group-wideKnowledge Management Program.

For Human Resources, the primary focus going forward is talent management. Developing theskills of its employees is an integral part of the ArcelorMittal vision to be the most admired steelinstitution in the world. Enabling employees at all levels to contribute to the best of their abilityis the duty of any good employer. It also makes good business sense.
http://www.arcelormittal.com/index.php?lang=en&page=509http://www.arcelormittal.com/index.php?lang=en&page=509


14/27

Like other international companies, they face huge competition to develop and attract talentedpeople with multi-country experience. Finding managers with both business and internationalexperience remains a key challenge.

The response of ArcelorMittal has been to invest heavily in the fostering and development of

internal talent through a multi-pronged Leadership Development Program. This programcombines several tiers of internal and external training with a continuous review processdesigned to identify and develop a long-term pool of talent.

AboutInnovation R&D in ArcelorMittal:

Innovation is a mindset at ArcelorMittal. Not only are ArceloMittal the largest steelmaker byvolume but they offer the broadest range of steel grades, new steel products, steel solutions andcutting-edge technologies.

Close cooperation with customers - involving mutual trust, an open-minded approach andpermanent exchanges of personnel - helps foster the spirit of innovation, enabling them todevelop the products and solutions that will meet their ever-growing demands.

Over the longer term, they continue to work at cutting edgesteel products, solutions and processtechnologies.

Mission of R&D in ArcelorMittal's:

R&D is the main instrument for delivering ArcelorMittal's ambitions in technological innovationand supporting its sustainability and future growth.

The R&D mission is to:

Invent the steels and steel solutions of tomorrow - developing products that create valuefor customers and expand the use of ArcelorMittal's steels worldwide;
http://www.arcelormittal.com/index.php?lang=en&page=11http://www.arcelormittal.com/index.php?lang=en&page=12http://www.arcelormittal.com/index.php?lang=en&page=11http://www.arcelormittal.com/index.php?lang=en&page=12


15/27

Improve ArcelorMittal's competitiveness - by developing new and optimising currentindustrial processes to reduce cost and improve quality;

Contribute to sustainable development - by reducing environmental impact; Continuously upgrade ArcelorMittal's scientific knowledge and attract technical talent.

R&D key figures:

1,400 full time researchers 15 Research Centres in Europe, North and South America A budget of over US$280 million ( 190 million)

Activities done by R&D:

Research dedicated to markets and products :

ArcelorMittal's R&D is highly business-oriented, ensuring a shortertime-to-market and improved competitiveness.

Automotive Packaging Construction General industry Long products Stainless steels Special plates

Research dedicated to process

Process R&D is indispensable for the implementation of new steel products and solutions butalso to meet the following objectives:

= cost reduction through improved productivity and reliability in our production processes;= improved environmental performance through reduced emissions; increased product and by-product recycling; energy saving; flexibility in the use of raw materials and energy resources;and the systematic study of the impact of our products and processes on the environment throughLife Cycle Assessment (LCA).

Upstream process: from raw material selection to hot rolling operations Downstream process: from cold rolling to coating and finishing operations

Research Centers in different different countries:
http://www.arcelormittal.com/index.php?lang=en&page=530http://www.arcelormittal.com/index.php?lang=en&page=531http://www.arcelormittal.com/index.php?lang=en&page=532http://www.arcelormittal.com/index.php?lang=en&page=533http://www.arcelormittal.com/index.php?lang=en&page=534http://www.arcelormittal.com/index.php?lang=en&page=535http://www.arcelormittal.com/index.php?lang=en&page=536http://www.arcelormittal.com/index.php?lang=en&page=537http://www.arcelormittal.com/index.php?lang=en&page=538http://www.arcelormittal.com/index.php?lang=en&page=530http://www.arcelormittal.com/index.php?lang=en&page=531http://www.arcelormittal.com/index.php?lang=en&page=532http://www.arcelormittal.com/index.php?lang=en&page=533http://www.arcelormittal.com/index.php?lang=en&page=534http://www.arcelormittal.com/index.php?lang=en&page=535http://www.arcelormittal.com/index.php?lang=en&page=536http://www.arcelormittal.com/index.php?lang=en&page=537http://www.arcelormittal.com/index.php?lang=en&page=538


16/27

Value creation for employees or innovation n creativity :

If at first you do not succeed, try, try again :

Excellence is not only achieved through creative thinking. The organisation needs to have thechance to assimilate improvements. The best image to present this double mechanism remainsthat of the Deming circle which rolls up a slope (creative component), while a wedge prevents itfrom rolling backwards (system).

In the production departments, non-conformities such as quality problems often have to do withall kinds of variations in the process. Consequently, the objective is to keep these variationsunder control and to progressively marginalise them even further. An important aid that we usein this effort is OSPC, which stands for Online Statistical Process Control. This is a programavailable on the network, which manages several hundreds of SPC cards used by ArcelorMittalGent.

Knowledge is the greatest good :
http://www.arcelormittal.com/gent/prg/selfware.pl?id_sitemap=95&language=ENhttp://www.arcelormittal.com/gent/prg/selfware.pl?id_sitemap=95&language=ENhttp://www.arcelormittal.com/gent/prg/selfware.pl?id_sitemap=95&language=EN


17/27

On the basis of everything that we do lies the professional knowledge of our people. We makeevery effort to maintain and increase all our knowledge. Our management system is thereforealso oriented towards knowledge management. The major challenge is processing the constantchanges in our organisation: people come and go. We make sure that the essential knowledgealways remains available within the organisation, is kept up-to-date and is further developed and

improved.

First mover advantage for ArcelorMittal :

ArcelorMittal Gent was the first ArcelorMittal plant to develop the following new products:

ULC BH 260, hot-dip galvanized, for external automotive components TRIP 590, 700, 780, hot-dip galvanized DP1000, hot-dip galvanized DP500, hot-dip galvanized, for external automotive components

QUS. 2. New innovation n product innovates by arcelor mittal :

ArcelorMittal Dofasco unveils new ultra-low carbon steel technology:

World's largest steelmaker unveils innovative production process to meet future demands ofautomotive industry. ArcelorMittal has unveiled a unique new ultra-low carbon productiontechnology at its Dofasco plant in Hamilton, Canada, which will give the world's largest

steelmaker greater capability to produce more advanced grades of automotive steel - enablingcloser tolerances, lowering weight and improving functional performance of finished car parts.

This new production technology, which has been recognized for its low capital expenditure at thesame time as being highly innovative, has also been pivotal in helping ArcelorMittal betterunderstand how it can drive efficiencies across the business through application of low-carbonsteelmaking technology.

In 2009, ArcelorMittal invested US$235 million in research and development across the sectorsincluding the automotive industry. This new ultra-low carbon steel production process,developed by ArcelorMittal Dofasco, is just the latest example of how the company's

commitment to research is delivering in terms of innovation for car manufacturers.

The research team at Dofasco delivered the findings of their low carbon steel project to anaudience of ArcelorMittal employees and key stakeholders during ArcelorMittal Group's annualGlobal Leadership Convention in Chicago, USA. The convention, attended by over 400company executives, saw the Dofasco team receive the Leadership and Innovation Award as partof the Group's Performance Excellence Awards - one of six performance-based accoladesawarded by the ArcelorMittal Group for business excellence amongst its employees.


18/27

ArcelorMittal Dofasco was one of 28 submissions for the award and surpassed three otherfinalists from Global R&D, Global R&D Distribution Solutions and ArcelorMittal Bremen. TheCanadian plant was recognized for its notably low capital expenditure at the same time as beinghighly innovative.

"In order to ensure ArcelorMittal's ongoing status as a world-leading company, it is essential thatwe continue to share best practice across the network and champion innovation throughout ourglobal operations," commented Lakshmi N Mittal, Chairman and Chief Executive Officer,ArcelorMittal. "The Performance Excellence Awards are a vital tool in achieving this aim,ensuring recognition for the many exciting projects going on around the business. I waspersonally delighted to see the sheer variety of entries submitted for the PEAs this year andwould like to take this opportunity to personally congratulate not just the winning teams, but allthose initiatives that were nominated during the 2009 financial year," he added.

"This award recognizes the importance of driving continuous improvement through the effort ofour people - empowering teams and challenging their hearts and minds," said Sean Donnelly,

Vice President, Technology and Continuous Improvement at ArcelorMittal Dofasco.

The Performance Excellence Awards were established in 2007 as a means of recognizing and promoting excellence and innovation within the ArcelorMittal Group. Additional categoriesinclude: Health and Safety, Operational Excellence, Customer Satisfaction, Margin Generationand Corporate Responsibility.

Ultra Low Carbon steel at ArcelorMittal Dofasco is made via the Vacuum Degas tank

process without the ability to sample steel chemistry during processing. Because of this

constraint, the deep vacuum degassing time was fixed historically at 13 minutes to cover

variation in the process. As carbon specifications tightened and productivity demands

increased, changes to the processing method were required. A unique solution wasdeveloped between steelmaking technology and research that involves real time slag

chemistry measurement together with laser based tank off-gas analysis. These two new

technologies combined with newly developed control strategies have improved carbon

capability by up to 20% and reduced average decarburization time by 23%.

Packaging design: making the best of steel :


19/27


20/27

A number of typical co-engineering projects that were set up with customers include: working onthe development of steel structures for dishwashers (instead of plastic solutions), steel conceptsthat reduce the noise created by washing machines when rotating at high speeds, back walls forflat screen TVs, reducing the weight of the mowing arms of large harvesting machines or largecrane arms, and even redesigning steel furniture. Thus, a wide range of applications - which also

immediately explains the attractiveness of the industrial market.

For its innovative projects, ArcelorMittal Global Research & Development Gent has the mostmodern machines and equipment, allowing us to penetrate into the structure and composition ofthe material down to the level of just a few atoms.

ArcelorMittal Global Research & Development Gent... where innovation is the starting point...

ArcelorMittal Global Research & Development Gent is active in the following areas, amongothers:

Development of new steels and metallic coatings.

Surface functionalisation (surface treatments, process development for thin organiccoatings, hybrid coatings, characterisation of the metal/polymer contact layer, adhesionproblematic)

Toxicology (ecology, working environment, safety, etc.) Application of steel strip (welding, laser-cutting, shaping, connecting), including

technical support of ArcelorMittal customers Rustproof steel (development of new types of steel, surface functionalisation, coatings,

application of rustproof steel, support of Ugine & ALZ) Technical support of ArcelorMittal Gent

Technical and scientific support of third parties (also in areas other than steel) in the formof customised contract work.

Other innovations :

High-strength steel: strong, stronger, strongest

Over the past five years, ArcelorMittal Gent has worked intensively with ArcelorMittal Global
http://www.ocas.be/http://www.ocas.be/


21/27

Research and Development Gent (also known as OCAS) on the development of a range of steelswith high-strength properties in both the hot rolled and the cold rolled and zinc-plated states.These steels are primarily used in the automotive industry. For the ultra-high-strength types,however, applications certainly exist in other markets, such as energy transport (gas or oil

pipelines).

High-strength steel: a development rather than an invention :

The development of high-strength steels involves proper application and the best possiblecombination of a number of fundamental metallurgical principles.

The most efficient way of increasing the strength is by refining the grain of themicrostructure. This is achieved by controlling the treatment of the steel in the hot stripmill and during annealing, and by adjustment of the steel's chemical composition.

A second method is solid-solution hardening. This method entails the addition of alloyingelements such as Mn, Si and P. The last one in particular has a great influence upon thestrength, even in small quantities.

A third method involves the creation of precipitates such as titanium carbide (TiC) andniobium carbide (NbC) in the steel. These particles, which may measure as little as a fewnanometres (1 nm = 0.000000001 m), have a major effect upon the final mechanicalproperties. The first steels to make major use of this method are the microalloyed steels,which have a strength in the order of 500 MPa.
http://www.ocas.be/http://www.arcelormittal.com/gent/repository/innovatie/Fig1%20overzicht%20kw%20hoge-sterktestalen%20EN.jpghttp://www.ocas.be/http://www.ocas.be/


22/27

In order to attain even higher strengths, the various phases in the microstructure have to bemodified. Steel normally consists of a ferrite matrix in which Fe3C particles (cementite) aredistributed. By optimization of the process parameters, however, metastable phases such asbainite, martensite and austenite can be obtained. They substantially enhance the strength, and in

some cases other special properties such as toughness.

Typical microstructure of an IF high-strength steel (a), a dual-phase steel (b) and a TRIP steel

The use of transformation induced plasticity (TRIP) steel, which combines high strength withexceptional formability, enables our automotive customers to make important progress inthe field of passenger safety and weight savings (environmental responsibility).

Since the beginning, in the late 1990s, the developments progressed particularly in the attainedtensile-strength level, reaching 700MPa (TRIP 700). Thanks to close cooperation betweenresearchers from a number of disciplines and representatives from the various productiondivisions, ArcelorMittal Gent was able to produce the first hot-dip galvanized TRIP coil in 2001.That was a first for the ArcelorMittal group.

Application tests performed by certain leading automobile manufacturers indicated, however,that scope still remained for improvement, particularly in the area of spot-weld ability. In thecourse of 2002, we then developed an adapted concept involving less carbon, which resultedin the ArcelorMittal product attaining the same standard as that of our chief competitors. At thesame time, we continued laboratory-scale research into ways of reducing the carbon content even


23/27

further, by adding phosphor (P). These efforts were rewarded in mid-2003 by industrial-scaleimplementation at ArcelorMittal Gent of a hot-dip galvanized TRIP 700 type with the lowestcarbon content (best spot-weld ability) anywhere on the European market. Within one year, wehad therefore achieved an exceptionally important breakthrough in the area of wieldable and hot-dip galvanized TRIP steels.

At the end of 2003, we expanded this patented concept further, so that ArcelorMittal Gent is nowable to offer a complete range (590-780 MPa) of hot-dip galvanized TRIP steels. Thisachievement would not have been possible without the close and sound relationship between theArcelorMittal Global Research and Development Gent and ArcelorMittal Gent.

Parallel to these efforts, a concept for galvannealed TRIP - initially developed by Nippon Steel inconjunction with ArcelorMittals Ledepp laboratory - was produced at ArcelorMittal Gent,resulting in full-hard material. This material was then zinc-coated in Bregal and Mardyck. This

industrial test was completed so rapidly that it caught the attention of the senior management atArcelorMittal Auto.

At the "Journeys Sidrurgiques Internationals", accolades are awarded each year to a number ofprojects that are the product of an expressly multidisciplinary approach. ArcelorMittal Gent /ArcelorMittal Global Research and Development Gent was nominated for the award andreceived the ATS prize for the development of hot-dip galvanized TRIP steel. The award is arecognition of strong and sustained teamwork.

Perfection in laser welding :

In order to permit continuous processing of the coils in the successive phases of the productionprocess, the coils must be welded to each other. A buffer installation on the processing linesgives us precisely enough time to weld each incoming coil to the preceding one, resulting in asingle, endless steel strip. This takes place for example on the pickling line and in the coldrolling mill, where the hot rolled coils are welded together. A few years ago, we switched fromconventional butt welding to laser welding for this purpose. Laser welding and cutting now formpart of everyday operations.
http://www.ocas.be/http://www.ocas.be/


24/27

Analysis and Recommendations:

ArcelorMittal is the world's leading steel company, with operations in more than 60 countries

and 4 continents. ArcelorMittal is the leading company in steel market they have huge steelmarket and demand of steel is constantly growing up, many of other companies are also in the

field of steel but ArcelorMittal leads in market with the maximum % of market share. They have

the leading R&D and technology and a huge and very effective distribution networks.

ArcelorMittal is deals in many business i.e. automotive, construction, household appliances and

packaging. Sustainability, Quality and Leadership is the core values of ArcelorMittal. They used

the latest and developed technology for health, safety and wellbeing of its employees. Its an

proud and honor for ArcelorMittal that they are the official steel supplier for London Olympic

2012. Core philosophy of ArcelorMittal's is to produce Safe, Sustainable, and Steel . Safety

of their employees is the top priority for ArcelorMittal, they have improved their safety status so

much they have reduce the accident rates by25% in 2009 and goal to achieve the level of Zero

accident in next few years. Product diversity, geographic reach and vertical integration these

are strategies that made ArcelorMittal company in a leadership position in market.

Sustainability, Quality and Leadership these are the three values of ArcelorMittal for

transforming tomorrow in term of business. Companies have kept in their mind about the interest

and responsibilities towards their stakeholders, employess and society. These are some factors


25/27

that make ArcelorMittal an innovative and most creative company. They have a strong focus

on Corporate Responsibility. This is evidenced in numerous areas, for example the Company's

efforts to develop breakthrough steelmaking technologies, company leadership of the steel

industry's Ultra Low Carbon Steel (ULCOS) programme and the global activities of the

ArcelorMittal Foundation.

ArcelorMittal is committed to providing the Work environment free of harassment and

discrimination an working environment that is free from sexual or other harassment an

working environment where all employees whether they are at the Top, Middle or Lower level

they all treated equally. They provide the equal opportunity to all employees. ArcelorMittal

permits family members of existing employees to work for the Company.

ArcelorMittal makes every effort to provide employees with a healthy and safe work

environment. Respecting and protecting the environment is an important value to which

ArcelorMittal subscribes. At ArcelorMittal employees are given chances to improve their self.

At ArcelorMittal Dofasco, they work in multi skilled teams and provide each employee withopportunities to explore challenges as they arise. Through their countless rewards, innovations,

and community prospects, they are offering their employees chance to gain experience, create

your own opportunities, and build an exciting career. ArcelorMittal provides attractive

compensation opportunities beyond traditional elements of pay and benefits. They strive to

leverage other indirect reward elements, such as providing opportunities to learn and grow, to

work in a stimulating and multi-cultural work environment, to switch between functions and

countries, and to engage in multi-disciplinary task forces so that employees can learn a lot. These

are some reason why everyone wants to be a part of ArcelorMittal family; these are some

reason that makes ArcelorMittal an creative, most innovative origination. They provide such

culture and working Environment that everyone wants to be a part of this family. Everyone

wants to serve this company.

These are some important factors that come under the working culture of ArcelorMittal,

are:

Continuous improvement for their employee.

Providing Empowerment to their employee so that they can take decision according to

the situation.

Accountability for the managers towards the project.

They done a lot and spend a lot for the improvement of their employee and training program,

Developing the skills of theiremployees is an integral part of the ArcelorMittal. They spend

or to invest heavily in the fostering and development of internal talent through a multi-

pronged Leadership Development Program.


26/27

They have an spared R&D and Innovation department across various countries in that R&Ddepartment they have 1,400 full time researchers, 15 Research Centers in Europe, North andSouth America,A budget of over US$280 million ( 190 million), through these R&D andInnovation department they produced or manufactures lot of new and innovative products,which make them a unique steel company from others. Ambitions in technological innovation

and supporting its sustainability and future growth are the mission of R&D and Innovationdepartment of ArcelorMittal.

These are some factors that the employees of ArcelorMittal are very creative:

They have mutual trust and mutual understanding with each others.

Open-minded approach of their employees. Permanent exchanges of personnel - helps foster the spirit of innovation.

Do work with free mind.

ArcelorMittal R&D is highly business-oriented and the objectives of R&D department are:

Cost reduction through improved productivity and reliability in our production processes.

Improved environmental performance through reduced emissions increased product andby-product recycling, energy saving.

Some First mover advantage for ArcelorMittal in which they create monopoly in market:

ULC BH 260, hot-dip galvanized, for external automotive components TRIP 590, 700, 780, hot-dip galvanized

DP1000, hot-dip galvanized DP500, hot-dip galvanized, for external automotive components

Some new innovations done by ArcelorMittal:

ArcelorMittal Dofasco unveils new ultra-low carbon steel technology.

High-strength steel: strong, stronger, and strongest.

Perfection in laser welding.

They changed their packaging style for steel Bundle in such manner so it looks like very

attractive.

They Development of new steels and metallic coatings.

Rustproof steel (development of new types of steel, surface fictionalisation, coatings,application of rustproof steel, support of Urine & ALZ).


27/27

So finally having an R&D Department is the major strength for ArcelorMittal, because of this

R&D Department they done lot of research and manufacture and produced many of new

technologies and products. Thats why it makes ArcelorMittal an unique company.

Documents

2003 Final Term Paper of Creativity