Asian Rich List 2024

Welcome to interactive presentation, created with Publuu. Enjoy the reading!

Lakshmi and

Aditya Mittal

Steel

£12.9bn £100m

LAKSHMI MITTAL, who is 73, is executive

chairman of ArcelorMittal, a position he took

over in February 2021. Although his son, Adi-

tya, is only 47, he is already the chief executive

officer of the firm and being groomed to take

over from his father as head of the firm. In

some ways, Aditya is already captaining the

side.

Mittal’s daughter, Vanisha, who is four years

younger than her brother, is also on the board

of ArcelorMittal as a non-independent director.

The steel industry was badly affected by the

COVID pandemic. Just when its fortunes start-

ed to revive, the war in Ukraine disrupted ener-

gy prices, making steel production much more

expensive. As it is, the Mittals have a large plant

in Ukraine in Kryvyi Rih in the south of the

country. This was going to be mothballed, but

management agreed with the locals that it

should be kept going for “both business and

community reasons”. But only one of its three

blast forces is making steel in a plant working

at “20-25 per cent” of capacity.

For the Mittals, the big chal-

lenge is posed by climate

change. Steel is notorious

for producing huge quan-

tities of carbon dioxide.

There is a joke going

around in the steel in-

dustry, especially at

ArcelorMittal: “For

every tonne of steel

you make, you pro-

duce two tonnes of

carbon dioxide. So,

you could actually

say, steel compa-

nies are actually not

steel companies;

they are companies

that make carbon

dioxide, and steel is

a byproduct.”

In an effort to

reach the Net Zero

target by 2050, the

Mittals have bought

a couple of plants

that will help the

transition: the state-

of-the-art Compan-

hia Siderúrgica do Pe-

cém in northeast Brazil

and the Hot Briquetted

Iron (HBI) outfit in Cor-

pus Christi, Texas, in the

USA.

At the Indian plant in Hazira in Guja-

rat, which ArcelorMittal owns in a joint

venture with Nippon Steel of Japan, in-

creasing production of steel – initially

from nine million tonnes a year to 15m

tonnes and then to 20m tonnes – is al-

ready under way.

Across Europe – in Ghent in Belgium,

Spain, and France – the Mittals are in-

troducing new ways of making steel

using either natural gas or “green” hy-

drogen.

One prestige project that has gone to

the Mittals is the contract to make the

torches for the 2024 Olympic and Para-

lympic Games in Paris. ArcelorMittal

will

also manufacture

the mini-caul-

drons and

the “Spec-

taculars”,

the large Olympic

rings and Paralym-

pic agitos that will

be installed in Paris.

The high-tech torch-

es look very different

from the ones that

have been used in past

games. They are 70cm

long, have mini-

mum and

maxi-

mum diameters of 3.5cm and 10cm,

respectively, and will each weigh

1.5kg.

They will be made using steel from

three French plants, which is perhaps

a little ironic considering back in 2006,

both Arcelor and the French govern-

ment did everything possible to block

the hostile bid by Mittal Steel. Three

French sites have been carefully cho-

sen to produce steel with a reduced

carbon footprint.

At Châteauneuf, ArcelorMittal is cast-

ing 100 per cent recycled steel from

scrap. This chosen route produces

steel with a reduced carbon footprint.

The steel is then rolled at Florange, on

lines that are usually used for the most

demanding products in the automo-

tive and food packaging industries. Fi-

nally, the ArcelorMittal site at Woippy

cuts the steel sheet into blanks ready for shap-

ing. In total, there are 10 main components

that need to be assembled with meticulous

care.

Aditya is thrilled that ArcelorMittal has been

bestowed with a metaphorical medal even be-

fore the Olympics have begun.

He acknowledged: “It’s a privilege and a great

responsibility for ArcelorMittal to manufacture

the torches – such an iconic symbol of the

Olympic and Paralympic Games – for Paris

2024.

“ArcelorMittal’s teams are mobilising all their

expertise to produce high-quality steel with a

reduced carbon footprint, enabling us to create

a torch as beautiful as Mathieu Lehanneur im-

agined, and as sustainable as we want it to be. I

am delighted with this superb achievement

and congratulate all the ArcelorMittal teams

working on this fantastic project.”

It so happens that father and son ran with the

torch when the Olympic Games came to Lon-

don in 2012, so it is possible they will do the

same in Paris.

Although he has been giving increasing re-

sponsibility to his son, Mittal says he remains

“actively engaged in the business”, works full

time, and comes in daily to his offices in Berke-

ley Square in London.

He expects his staff to follow his example. It is

known he is not a fan of the hybrid or “work

from home” schools of thought. It seems many

of his staff, especially at senior levels, have

been with him for long periods of time. It is

said to be a “sticky” company that manages to

hold on to its talents.

To be sure, he has to travel extensively, visiting

his plants or leading politicians all over the

world. In Europe, he has managed to convince

governments that ArcelorMittal’s switch to

green methods of making steel has to be subsi-

dised by European Commission funding.

Today, he is widely recognised as probably

the most important man in the steel industry.

On a mission to produce

smarter steel

Mittal duo all set to take the steel industry into the green future

10

Asian Rich List

Eastern Eye Asian Rich List | 2024

STEELY RESOLVE: Lakshmi

Mittal; (above) a model of

ArcelorMittal’s Olympics torch;

(opposite page, top) Lakshmi Mittal,

Belgian prime minister Alexander

De Croo and Aditya Mittal and (bot-

tom) with the Olympic torch in

London in 2012

Made with Publuu - flipbook maker