...ArcelorMittal is a steel and mining company with a global presence in more than 60 countries. It is a leader in major global carbon steel markets such as automotive, construction, and household appliances to name a few. It is the combination of Arcelor and Mittal Steel, the latter being the origin of the present company. Mr. Lakshmi N. Mittal, Chairman and CEO of ArcelorMittal, started in the steel industry by building his first steel plant in Indonesia in 1976. This would form the beginning of Ispat International, while also establishing its parent holding company, LNM Group. In the 1980’s, still a minor player in the steel industry, Mittal looked to a new potential raw material source, DRI (Direct-reduced Iron). This had immense potential as production costs could be reduced by half while production volume itself could increase by tenfold. In 1989, Mittal leased one of the largest DRI suppliers, Trinidad & Tobago, and later bought it outright in 1994. As Ispat and LNM Group continued to expand over the next decade, Ispat acquired its parent, LNM Group, in 2004, and immediately merged with International Steel to form Mittal Steel, making it one of the largest steel companies in the world by volume and a major player in the steel industry. Mittal Steel’s growth finally led to the proposed acquisition, in 2006, of the world’s second largest steel producer in terms of production, Arcelor. After this successful acquisition, ArcelorMittal succeeded Mittal Steel and became...
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...Manikandan Tata’s Corus Valuation Introduction: Tata Steel was established by an Indian, Jamshetji Nusserwanji Tata in 1907. Though he died in 1904, before the project came to light, he sowed the seeds for a company that can stand the test of times. A century later, they took over Corus to become the 5th largest steel producer in the world. On January 31st 2007, Tata Steel took over Corus for USD 12.11 Billion. It took 9 rounds of bidding against a Brazilian competitor, CSN to seal the deal. The deal between Tata and Corus was officially announced on April 2nd 2007 at a price of 608 pence per common share in cash. It was a 100% acquisition and a new entity was born, to be run by one of Tata’s subsidiary in London. When the acquisition process started off in 2005, the initial offer was 455 pence and finally ended with Tata paying 608 pence, which is 33.6% more than the initial offer. This raises many an eyebrows about the final price. What transpired between 2005 and 2007? Was 608 pence/share a fair price? Steel Industry Tata Steel has its own mines and manufacturing units for the production of all kinds of steel. Steel is an alloy consisting mostly of iron, with carbon content between 0.2% and 2.1% by weight depending on the grade. Iron, like most metals, is found in the Earth's crust only in the form of an ore, i.e. combined with other elements such as oxygen or sulfur. Iron imputed with carbon forms steel. Carbon is the most cost-effective alloying material for...
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...Papers Home Page » Business and Management Steel Industries of Bangladesh In: Business and Management Steel Industries of Bangladesh STEEL INDUSTRIES OF BANGLADESH REPORT ON FOCUS The report “Bangladesh on its way of becoming self sufficient in rod production, export is also a possibility” by Shuvankar karmakar, that was analyzed here, was published in the Daily Prothom Alo, on 17th November, 2012. BACKGROUND Bangladesh Steel industry is emerging as one of the major industrial sectors of the country. It consists of small up to the largest scale of steel melting and re-rolling factories across the country that mostly produce deformed bar rod of different grade (40, 60, 500), angel, channel and coil for the construction industry. Though the history of Steel Industry is not older one but it can make a glorious future. Before 1971 Bangladesh did not have any steel mill and even after the liberation there were only a few steel factories in the country. In 1990s the actual development began in this sector through a revolution. During that period the building constructing agencies or developer companies came forward to build modern infrastructure. Then with the increasing demand, new investors started investing in steel or rod production. In 2012 we have almost 400 mills across the country including Dhaka, Chittagong. Although most of them are manual steel plants, 30 mills among them are automated. Many steel producing companies have gained reputation as a...
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...Discuss the trends in the steel industry and how it may impact Nucor’s strategy. Nucor Corporation started as a Nuclear Corporation of America. The latter was a highly diversified and marginally profitable company; the company products included instruments, rare hearths, semiconductors and construction. One of the company potential acquisitions was Coast Metals, a family owned producer of specialty metals. When the acquisition fell through, Nuclear hired one of the top engineers as a consultant to recommend other acquisition targets. Ken Iverson who was the president and CEO of the Nucor Corp. had strong technical skills and general management experience. The Nuclear Corporation of America was involved in the nuclear instrument and electronic business. The company went through many years of severe financial strains; he was responsible for the supervising the joist operations as well as the research, chemical and construction segments. Shortly after Iverson became the CEO of the company, he concluded that the best way to put the company on sound footing was to exit the nuclear instrument and electronics business and rebuild the company around its profitable South Carolina based Vulcraft subsidiary which was in the steel joist business. So Iverson moved the company’s headquarter from Phoenix, Arizona to Charlotte, North Carolina, in 1966 and proceeded to expand the joist business with new operations in Texas and Alabama. The company adopted the name Nucor Corp. in 1972, than...
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...Introduction VBF Tubing is the largest steel producer in the Netherlands. VBF produces welded steel tubing plants in three of its plants. These tubes find application in various fields ranging from structural components to gas, steam & liquid transmission. The major concern for VBF is their low inventory ($ 4.5 million) turning rate. Process i. Raw material preparation: Flat rolled steel is used as raw material, which is wound into rolls, unwounded, and then the start of one coil is welded against the end of previous coil. Continuous steel strip is then fed to tube forming & welding operation. ii. Tube formation: Two basis sizes called as ‘Mother Tubes’of 4 & 3 inch diameter. 4 inches in diameter accounted for 90% production. 3 inch mother tube produced over a 5 day period, only 3 times a year because it required a major changeover. iii. Stretch-reduction: Vast majority of 4 inch tubes are stretched & reduced in SRM machine into smaller dia. (0.5-2.5 inch). There is a production loss of 10 days when 4 inches are being cut. Production rates are minimum for smaller dials. iv. Finishing operations: Cost of storage of semi-finished tube is $400/ton. Various operations performed in finishing include zinc plating, threading tube ends, and adding caps before shipping to the customer. Problem Statement i. The inventory turnover is very low in spite of increasing demand. Excess holding of 3000 tonnes of finished goods indicates major problems in the sales operations. ii. 15...
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...AN ASSIGNMENT ON MERGER AND ACQUISITION OF Tata Steel and Corus BY Lokesh Bhatiya 09MBA02 SEMESTER 4 INTRODUCTION: STEEL INDUSTRY Contribution in the development of India’s economic growth: The Indian steel industry is more than 100 years old now. The first steel ingot was rolled on 16th February 1912 - a momentous day in the history of industrial India. Steel is crucial to the development of any modern economy and is considered to be the backbone of the human civilization. The level of per capita consumption of steel is treated as one of the important indicators of socio-economic development and living standard of the people in any country. It is a product of a large and technologically complex industry having strong forward and backward linkages in terms of material flow and income generation. All major industrial economies are characterized by the existence of a strong steel industry and the growth of many of these economies has been largely shaped by the strength of their steel industries in their initial stages of development. India is the seventh largest steel producer in the world, employing over half a million people directly with a cumulative capital investment of around Rs. one lakh crore. It is a core sector essential for economic and social development of the country and crucial for its defense. The Indian iron and steel industry contributes about Rs.8,000 crore to the national exchequer in the form of excise and custom...
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...taken by an individual manager or by an organization at the strategic, functional or operational levels Reinventing a Giant Corporation: The Case of Tata Steel D V R Seshadri and Arabinda Tripathy A KEY WORDS Reinvention Change Management Turnaround Tata Steel Liberalization Response to Globalization t the meeting of the senior management of Tata Steel to celebrate the spectacular performance of the company, Mr. B Muthuraman, the Managing Director, recalled with satisfaction the remarkable strides that the company had made from the difficult days in the early nineties, when the company, used to a protected environment, was suddenly thrown open to global competition, consequent to the liberalization of the Indian economy. The company had closed the year with a record profit of Rs. 34.74 billion. A series of initiatives launched by the company over the last 15 years had culminated in these stellar results although there were many challenges at every step. At each stage in its journey, the company did what needed to be done. In retrospect, however, the various initiatives launched by the company over the years now appeared to fit into a coherent picture. The company had made steady progress over the years and had now achieved a pre-eminent status in the Indian steel industry. It had become one of the lowest cost steel producers in the world five years ago, a distinction that it had continued to maintain. All key performance indicators indicated that the company was in the...
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... Nucor Corporation was the most profitable steel producer in North America in both 2005 and 2006. It is regarded as a low-cost steel producer in the United States, and one of the most efficient and technologically innovative steel producers in the world. Nucor is known for its aggressive pursuit of innovation and technical excellence, rigorous quality systems, strong emphasis on employee relations and workforce productivity, cost conscious corporate culture, and ability to achieve low costs per ton produced (C-194). Offering a streamlined organizational structure, Nucor uses its ability to achieve incentive-based compensation systems that rewards goal-orientated individuals for their performance. Over the years Nucor has expanded progressively into the manufacturer of a wider and wider range of steel products, which has gotten it to be able to offer steel users one of the broadest product lineups in the industry. In this industry steel products are considered commodities, and most steel plants turn out products with comparable quality to other companies. This makes one producer’s reinforcing bar essentially the same as another producer’s reinforcing bar, which in turn makes a particular grade of sheet steel made at one plant almost identical to the same grade of sheet steel made from another plant (C-195). Because of this, steel producers are forced to be price-competitive with the market price of each individual steel product being driven by demand-supply conditions...
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...BSRM Steels Ltd. Work Plan for SWOT Analysis Duration: 2 months (15th February to 15th April) Project Manager: Mr. Mahmud SWOT Steps/Activities | Data Sources | Data Collection Method | Responsible Person | Working Group | Logistics Supports | Required Fund | Timeline | Remarks | Analysis of General Environment | Primary & Secondary | Survey, govt. & regulatory publications, etc. | Mr. Adnan & Mr. Masud | 4 | Transport, survey instruments, technological support. | TK. 100,000 | 15th Feb to 14th March | Info gathered from both sources. | Analysis of Industrial Environment | Secondary | SEC publications, industry competitive analysis, business journal, industrial publications etc. | Ms. Shanila& Ms. Sinthia | 3 | Company’s database access, Technological support, analyzing tools. | TK. 70,000 | 15th Feb to 14th March | | Analysis of Internal Environment | Secondary | Company profile, minutes of meetings, financial statement etc. | Mr. Muhib | 2 | Factory inspection, company’s database access, analyzing tools. | TK. 50,000 | 15th March to 31st March | | Describing 1. General OT 2. Industry OT 3. Internal SW | Secondary | Findings from external & internal environment analysis | Ms. Tahmina | 1 | Technical support, fact finding tools. | TK. 20,000 | 1st April to 14th April | Describe the findings of previous steps | Strategic Conclusion | This work plan will be taken as cornerstone of SWOT analysis of BSRM Steels...
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...Gopal Iron & Steels co. (Gujarat) Ltd. -A Managerial View A Report by:- Mohak Bhandari, Sambhav Jain, Harsh Patel, Bharat Gabra Table of Content SR.NO | Particulars | Page. no | 1 | Company Overview | 3 | 2 | Industry Overview | 4 | 3 | Company Details | 6 | 4 | Shareholding Pattern | 7 | 5 | Financial History | 8 | 6 | Management Practices | 9 | 7 | Operation Management | 10 | 8 | Process | 11 | 9 | Management | 12 | 10 | Labor Response | 13 | 11 | Globalization Responses | 14 | 12 | Change and Innovation | 15 | 13 | Leadership | 16 | 14 | PESTLE Analysis | 17 | 15 | Conclusion | 18 | Company overview Gopal Iron & Steels Co. (Gujarat) Limited (GISCO) is established in the year 1994. We are a leading manufacturer of Structural Steels, Bars and ERW Tube / Pipes in the state of Gujarat. Over the years, GISCO has been continuously upgrading with latest technology and infrastructure. GISCO has earned the status of preferred steel manufacturer for traders, customers, engineering, construction, infrastructure and other primary industry. Since its inception, as Gopal Rolling Mills Private Limited, the company has never looked back. Every year has brought enormous rewards not only in the form of revenues and records, but also in the form of continuously growing customer base. The company was converted into a Public Limited Company in the year 1995 and since then it is known as Gopal Iron & Steels Co. (Gujarat) Limited...
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...com ASBE 35th: Proceedings Page -401- Association for Small Business & Entrepreneurship 35th Annual Conference 3 ABSTRACT Nucor Corporation 2008-2009 is a strategic management case appropriate for first-year MBAs or seniors in an undergraduate capstone course. The focus of this case is the strategy of the most successful steel-maker in the United States as of 2008/2009. It has a difficulty level of five. Secondary issues include Porter’s Five-Forces Framework of industry analysis and the effects of the global economic slowdown in the last quarter of 2008 and the first quarter of 2009 on Nucor’s business. The case is designed to be taught in a single 75-minute class and is expected to require two to three hours of outside preparation by students. In order to facilitate students’ understanding of the economics of accounting figures, we have rearranged the balance sheet so that “earning assets” equal “permanent funding sources.” For real wealth to be created, the average return on earning assets must equal or exceed the weighted average cost of capital demanded by permanent funding sources. Nucor has been the most successful American steel maker for more than 35 years. It has a unique company culture and is recognized as the technology leader in its field. In an industry that is heavily unionized, Nucor’s work force is non-union. The company is also a textbook example of Porter’s Cost Leadership...
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...teelIRON AND STEEL INDUSTRY IN INDIA Corporate Catalyst India A report on Indian Iron and Steel Industry OVERVIEW 1.1 Background The Indian iron and steel industry is nearly a century old, with Tata Iron & Steel Co (Tata Steel) as the first integrated steel plant to be set up in 1907. It was the first core sector to be completely freed from the licensing regime (in 1990-91) and the pricing and distribution controls. The steel industry is expanding worldwide. For a number of years it has been benefiting from the exceptionally buoyant Asian economies (mainly India and China). The economic modernization processes in these countries are driving the sharp rise in demand for steel. The New Industrial policy adopted by the Government of India has opened up the iron and steel sector for private investment by removing it from the list of industries reserved for public sector and exempting it from compulsory licensing. Imports of foreign technology as well as foreign direct investment are freely permitted up to certain limits under an automatic route. This, along with the other initiatives taken by the Government has given a definite impetus for entry, participation and growth of the private sector in the steel industry. While the existing units are being modernized/expanded, a large number of new/greenfield steel plants have also come up in different parts of the country based on modern, cost effective, state of-the-art technologies. Soaring demand by sectors like infrastructure...
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...his companies emerged the steel to build the infrastructures such as railroads, bridges, automobiles, and ships that would build a nation in need of direction. He played a major role in the transformation into the Industrial Revolution, producing the steels to make machinery and transportation possible. Carnegie built his empire from cost control, low prices, low profits, and high volume to make himself the richest man in the world. Some people call him a villain, some people call him a hero? So, was Carnegie really a business hero in American history? Andrew Carnegie was born in a very poor family from Scotland. His first job was at the age of thirteen; he was working as a bobbin boy in a cotton mill. It was his second job in which he was able to learn many important structures of business. Working most of the day, he never had time to go to school like other kids. Therefore, he went to the library to study whenever he has time. He later was hired by Thomas A.Scott to work as a private secretary and a personal telegrapher. When the Civil War came, he was the right hand man of Scott, who was the supervisor of military transportation for the North back then. Working as Scott’s right hand man, Carnegie was able to gain experience in the railroad industry. After the Civil War, Carnegie took Scott’s former position as superintendent of the western division to the Pennsylvania Railroad. Andrew Carnegie formed his wealth by the production of iron and steel, and some of which was used...
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...Year Eleven Chemistry Rust prevention in coating. Introduction/Abstract. The context of ships rusting at sea. Steel has many properties that make it a useful and essential building material in boats. Its strength and durability make it a great choice for structures exposed to high amounts of stress, such as weather, heat, large amounts of applied force and constant usage and is also a viable option for the sea although it can still be bettered. Steel is better protected by; galvanisation, waterproof paint or a sacrificial anode to better the corrosion protection for boats in the water compared to just bare steel framework (Corrosion methods, Corrosion-doctors.com;) these methods in theory protect the steel from the chlorides and salts to further the durability and life of the framework of a boat and hence allow them to endure more, and with corrosion costing $2.7 billion to just ships alone it’s easy to see why corrosion must be prevented. (The cost to the world because of corrosion with ships at $2.7 billion.) The chemistry of rust. Rust is caused by a few factors; moisture is the leading cause of rust along with water and salt, all making boats the most common victims of rust. (4 Fe+ 3O2 + 6 H2O= 4 Fe(OH)3,) Both water and oxygen must be present for rust to start and with water and oxygen on its own enough for rust to start destroying the structure of a boat, but along with salt to the water, it’ll become evident quickly that rust can be a big problem for many boat...
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...1)Sources of Industrial Growth a)Industrial Technologies i)Most impt tech development was new iron + steel production techniques- Henry Bessemer and William Kelly invented process to turn iron to steel, possible to produce large quantities and dimensions for construction, RRs ii)Steel industry emerged in Pennsylvania and Ohio (Pittsburgh notably)- iron industry existed, fuel could be found in PA coal iii)New transportation systems emerged to serve steel industry- freighters for the Great Lakes, RRs used steel to grow + transported it (sometimes merged w/ one another). Oil industry also grew b/c of need to lubricate mill machinery b)The Airplane and the Automobile i)Development of automobile dependent upon growth of two technologies: creation of gasoline from crude oil extraction, and 1870s Eur development of “internal combustion engine”. By 1910 car industry major role in economy ii)First gas-car built by Duryea brothers 1903, Henry For began production 1906 iii)Search for flight by Wright Bros lead to famous 1903 flight. US govt created National Advisory Committee on Aeronautics 1915 to match Eur research c)Research and Development i)New industrial technologies lead companies to sponsor own research- General Electric established first corp lab 1900, marked decentralization of govt-sponsored research. At same time cnxn began btwn university research + needs of industrial economy- partnership btwn academic + commercial d)The Science of Production i)Principles of “scientific...
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