Mittal: "We have achieved our objectives"

LE FIGARO. – ArcelorMittal escapes shortly after the first loss in its history. Are you satisfied with this performance?

Lakshmi Mittal. – No, although, given the circumstances, we are very far out. We achieved all our objectives of lowering costs, reducing debt, adjusting our production, and have negotiated with the various unions in the world … while 2009 was one of the most difficult years for thirty years the capitalist world. The crisis is not over. The recovery will be slow and gradual. But we managed to overcome the crisis successfully.

Using your production capacity from 50% in late 2008, to 70%. Do you anticipate this year?

Our production planning is based on the request of our customers. In 2009, only 10 of its 25 blast furnaces were in production. Now, twenty are active.There remain four or five who are temporarily stopped and restarted when demand recovers. At the end of 2010, our plants should operate at 85% of their capacity. The automotive market is expected to improve slightly over fourth quarter 2009 in Europe and strong growth in emerging countries. We organize days of innovation with our major customers. We present our new products, our development programs. They are still waiting for better products, steel both stronger and lighter, and more services.

How do you make 5 billion cost-cutting announced in 2012?

This total includes 5 billion of the savings already achieved (2.7 billion Editor's note). We have implemented many measures to improve our productivity.ArcelorMittal is a great company so we can make a "benchmark" in the group! We have implemented a continuous improvement plan which aims to save $ 30 (or 20 euros) per tonne of steel produced. There were hundreds of initiatives in this area. In 2009, we managed to save 13 euros per tonne. We still have to win 7 euros. At group level, it will represent an additional saving of 1.4 billion euros. And we can still reduce our administrative costs and expenses. This will include a specialization of production sites that could be devoted to one type of product payday advance . That does not mean that we will close …

… Or that you will continue to reduce your workforce?

The group has 35 000 employees less in 2009 than in 2008.We have plans in place starting in early retirement, voluntary severance schemes … We have nothing planned as of this year. We have just completed what was started. There is no excess production capacity in Europe. In China, yes.

You also talked about the resumption of investment.

Yes. We will resume mining projects and investment in developing countries, including Brazil. We do not expect to make further acquisitions in the steel. The cost would be higher than the expansion of existing capacity. We focus on the latter solution.

The introduction of carbon tax is a threat to your business in France?

We will be less competitive in Europe. We are in discussion with the French Government, to explain the impact of this tax on our costs.I met President Nicolas Sarkozy a few weeks ago. He says he wants a strong industry in France. We'll have to find solutions. European policy in terms of CO2 is already a burden for the European steel industry, compared to our competitors in China or India. This clearly represents an additional cost, difficult to quantify but very real. Finally, the carbon tax would be inconsistent with a strong industry. But both will have to coexist.

Chinese production of steel which starts again on the rise is a threat to your industry?

Last year, net exports of Chinese steel amounted to 10 million tonnes. This year, they should not exceed 25 million tonnes. First, because the Chinese domestic demand has picked up.Then, because Chinese steel production depends on imports of raw materials, making it less competitive for export. Finally, China mainly exported to South-Eastern Asia. Nevertheless, we are always attentive. If China's exports, it can make European prices down, it already happened before 2008. There is always a risk.

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Gold, placing anti-crisis par excellence, in senators' crosshairs. Tenants of the Palais du Luxembourg in fact want to submit the sales of precious metals – gold, but silver jewelry and works of art to the general social contribution (CSG), revealed Thursday "Le Parisien". Supported by the Social Affairs Committee, but considered "difficult to implement technically" by the government, this new tax, which should be passed in the day aims to bridge the deficit in Social Security. In detail, if the measure is adopted as from 1 January next year, each transaction will be taxed to the tune of 8.2%. For example, the sale of a jewel worth 200 euros, Social Security will receive 16 euros CSG. With this new tax, the senators hope to get a "few million" each year.

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While economists hoped that the UK went into recession in the second quarter of 2008 would have returned a meager growth (which they saw to 0.2% on average) between July and September, the first estimate of the NSO The British equivalent of INSEE, showed the contrary, a fall in gross domestic product (GDP) of 0.4% over the previous quarter and by 5.2% over one year.It is hardly better than the second quarter, where GDP had declined by 0.6%, and while the UK economy fell by 5.9% since its entry into recession.

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