It is no secret that 2015 was a challenging year for ArcelorMittal and for steel and mining companies around the world. Challenging markets for oil and other commodities and the effect of imports have impacted steel and mining negatively in various ways. Today, as an industry, we face our most challenging time in more than 15 years.
To weather these market conditions and future maturations, our business must be resilient, agile and lean. We must be driven by our global values – sustainability, quality and leadership. These values will continue to promote a performance driven culture which allows us to confront the business, environmental and social trends and the challenges that shape our operating landscape. To that end, ArcelorMittal launched a new narrative for sustainability in 2015. Our 10 sustainable development (SD) outcomes are the core of a framework that will help us address material issues and improve performance by thinking globally and acting locally. In the United States, we know we are more than just the steel we produce and the raw materials we mine. Our stakeholders are interested in our performance at every level, giving us the opportunity to demonstrate operational and environmental excellence and leadership in our communities.
Since 2009, ArcelorMittal has produced an annual corporate responsibility report in the United States. In 2012, we began producing an annual fact book to review our opportunities and challenges as a company and an industry. This year, in support of a global push toward integrated reporting, our team in the United States has merged these two documents and added key performance indicators (KPIs) vital to the sustainability of our business. This marks our first step toward integrated reporting, connecting the work of our 10 SD outcomes with our operations' goals and business strategy. We can no longer discuss sustainability as a concept. We must move to seeing it as a necessary means to find new markets, become more valued by our current customers, and grow in productivity and market share.
Our performance in 2015
As you read our first annual integrated report, you will learn more about our progress related to our 10 SD outcomes as well as the key financial and industry statistics that drive our business today and in the future. First, allow me to discuss a few key topics related to our 2015 results and 2016 objectives.
- Safety of our people
I am committed to setting the tone at the top of vigilance and zero tolerance as it relates to health and safety initiatives. In 2015, we sadly experienced two fatalities in the United States - one employee and one contractor. Though our lost time injury (LTI) rate did improve over 2014, we can and must do better. We reported a LTI rate of 1.33 in 2015 (includes flat carbon and long carbon facilities, full time employees and contractors).
- Our products and supply chain
While sales volume decreased slightly at ArcelorMittal in the United States in 2015 over the previous year, I congratulate the employees of ArcelorMittal in driving important results commercially. Our market share increased, and we made meaningful improvements in our delivery performance. Each year, our customers rate our performance on many dimensions. The highest ratings we receive are for relationships and partnerships. This is not surprising to me, as I know how deeply we engage with our customers at every level. But we must improve our performance in on-time delivery, product quality and service to remain highly competitive in the market.
- Operational efficiency
In the current market environment, we cannot expect a major upturn in prices related to steel or raw materials. We must learn to prosper within current market conditions, ensuring our assets are performing in a manner that produces long-term value for our customers and thereby, our company. High levels of capacity utilization are hallmarks of successful steel companies. In order to capitalize on the opportunities ahead, we must find ways to achieve higher levels of capacity utilization with no loss of volume or market share.
I encourage you to read on to the strategy section in this report, where you’ll learn more about how we are addressing our challenges through Action 2020
. This strategic five-year road map aims to achieve targeted financial improvements for the company by 2020.
In closing, I encourage you to view 2015 and 2016 as I do – part of a journey in which we work together to secure ArcelorMittal’s future. While the stakes are high for our company, we also have the opportunity to achieve great things. Our commitment to delivering value across the enterprise with our 10 sustainable development outcomes is evidenced in this report and just one step of many in a journey toward sustainability for ArcelorMittal in the United States and around the world.
Chief executive officer
ArcelorMittal USA Flat Carbon