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ArcelorMittal Galati , transforming tomorrow Sustainability Report 2015

Transcript of ArcelorMittal Galati 2015corporate.arcelormittal.com/~/media/Files/A/ArcelorMittal/sdr-2015/... ·...

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ArcelorMittal Galati ,

transforming tomorrow

Sustainability Report2015

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Contents

03 - Introductory Word

04 - ArcelorMittal Galati

06 - Our 10 sustainable development outcomes

08 - Outcome 1 Safe, Healthy, quality working lives for our people

14 - Outcome 2 Products that accelerate more sustainable lifestyles

16 - Outcome 3 Steel – the Fabric of Life

20 - Outcome 4 Efficient use of resources and high recycling rates

24 - Outcome 5 Trusted user of air, land and water

28 - Outcome 6 Responsible energy user that helps create a lower carbon future

32 - Outcome 7 Supply chains that our customers trust

36 - Outcome 8 Active and welcomed member of the community

40 - Outcome 9 Pipeline of talented scientists and engineers for tomorrow

44 - Outcome 10 Our contribution to society measured, shared and valued

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“Our transformation is not a tool but a way of life, because our future will not look like our past”

Introductory Word

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Bruno Ribo, Chief Executive Officer of ArcelorMittal Galati:

“Our transformation is not a tool, but a way of life, because our future will not look like our past”

Dear friends,

2015 was an important year for the Galati Steel Plant.

In terms of operations, it was a year when we could see the positive effects of our transformation. We have increased our output at 2 Million tonnes, thanks to the massive technical upgrades of our Blast Furnace no. 5, now one of the best in Europe.

This was reflected in our economic figures: we achieved positive operational results. But let’s remember that these good results came after 17 consecutive quarters with negative results, offset by the constant Group’s support to continue to invest. The Group’s support for our Plant must be understood as the best sign of commitment for Galati and Romania.

But our 4th quarter was again negative due to the collapse of prices, on the ground of massive imports especially from China. The situation was extremely difficult and imposed severe correction measures for adapting to situation, including for our people, who participated at this effort.

In front of this trade crisis, it is key that European states show a common view and actions in order to secure the future of steel industry in Europe. Policy makers in Romania can influence this common position a great deal; Romania should play its role and offer a competitive and stable frame for our activity, particularly offering competitive and sustainable cost of energy.

In 2015, we started to receive the fruits of our ample transformation process, started in 2009, re-shaped in 2015 for a new wave (the third one) named ARC 2020E – Acceleram Reusim Consolidam pentru Excelenta. We need to continue our transformation not as a temporarily tool, but as our way of life to adapt the realities of today: our future will not look like our past.

We are now better adapted for the current economic paradigm and we will continue to improve our competitive position to reach sustainability. We know clearly our next steps and the challenges ahead, which aren’t minor. But – knowing the people we are working with – I am confident we will succeed.

It is our commitment for our community. We contribute 28% to the county’s GDP and we think our responsibility is equally significant.

And this report – which I encourage you to lecture – is reflecting our 2015 efforts to ensure our sustainable long term future.

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Introductory Word

ArcelorMittal Galati

Sustainability Report2015

Bruno Ribo, Chief Executive Officer,ArcelorMittal Galati

Our 10 sustainable development outcomes are designed to describe in simple language what we must strive to look like if we are to prepare for long term social and environmental trends. By embedding the 10 outcomes through our operations, we are able to focus better on avoiding business disruptions, finding new ways to create value and enable our country to do the same.

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ArcelorMittal Galati

About ArcelorMittal

With annual achievable production capacity of approximately 115 million tonnes of crude steel, and 209,000 employees across 60 countries, ArcelorMittal is the world’s leading steel and mining company. Present in 19 countries, the company is leader in all major global steel markets including automotive, construction, household appliances and packaging, with leading research and development and technology, sizeable captive supplies of raw materials, and outstanding distribution networks.

Our approach

Our core philosophy is to produce safe, sustainable steel. In doing so, our top priority is safety and our goal is to be the world’s safest steel and mining company. As a company, we are committed to our promise of ‘transforming tomorrow’. Guiding us in this are our values of sustainability, quality and leadership.

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ArcelorMittal Galati

ArcelorMittal Galati

Sustainability Report2015

ArcelorMittal in Romania

In Romania, ArcelorMittal has 6 operating facilities, which include Galati (flat products), Tulcea (lime quarry), Iasi, Roman, (tubes and pipes), Hunedoara (long products) and Romportmet (a captive port on the Danube) and several functional services units.The total number of ArcelorMittal employees in Romania is about 10,000 people, including 6,500 in Galati, the flagship of the Romanian production units and another 50,000 indirect jobs. ArcelorMittal is among the first exporters in Romania. More than 70% of the output is exported. Located in the South-East of Romania, ArcelorMittal Galati is the largest integrated steel plant in the country and leader in manufacturing metallurgical products, with a production capacity of 3 million tonnes of steel. The unit is one of the main pillars of the community in Galati, known as the ‘steelmakers’ city’.

Hunedoara- Profiles, bars & billets

Pantelimon ArcelorMittal Construction

Bucuresti ArcelorMittal FCE Commercial Offices

Tulcea Lime Quarry

Galati pipes & tubes

Romportmet Danube Port

Roman Seamless Pipes

Galati Flats

Iasi Longitudinally Welded Pipes

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Our 10 sustainable development outcomes

We have to contribute to making a more sustainable future possible. Our 10 sustainable development outcomes are a compelling, practical and demanding way to do this, from the way we make steel and use resources, to how we develop new products, and support our people and our communities.

Leading the solution through 10 outcomes

The 10 outcomes are a strategic way to represent the material, social and environmental aspects of our business. They form the basis of an approach that will help us avoid damaging disruptions to our operations and create substantial value, both for our stakeholders and our shareholders, from the products we make to the way we make them, from the quality of our employees’ lives, to how our communities perceive us.The 10 outcomes are the result of a strategic materiality process we undertook in 2014. They are at the core of our new sustainable development framework that motivates action by our people from site to corporate level

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Our 10 sustainable development outcomes

ArcelorMittal Galati

Sustainability Report2015

All underpinned by transparent good governance

Safe, healthy, quality working lives for our people

Products that create sustainable infrastructure

Trusted user of air, land and water

Supply chains that our customers trust

Pipeline of talented scientists and engineers for tomorrow

Products that accelerate more sustainable lives

Efficient use of resources and high recycling rates

Responsible energy user that helps create a lower carbon future

Active and welcomed member of the community

Our contribution to society measures, shared and valued

Outcome 1

Outcome 2

Outcome 3

Outcome 4

Outcome 5

Outcome 6

Outcome 7

Outcome 8

Outcome 9

Outcome 10

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Safe, Healthy, quality working lives for our people

Outcome 1

1We want our workforce to be safe and healthy, committed to our success, and to carry out our business with integrity. We want a workplace where diversity is valued and every individual is respected and developed to their full potential.

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6155 employees in ArcelorMittal Galati1,19 no LTI per million hours worked OP+SP 2,141 issues related to risky working conditions pointed by the employees, out of which 82% have been solved164,763 total hours of training, including contracting staff8.550 trainees in 2015

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Safe, Healthy, quality working lives for our people

Outcome 1

2015 key facts:

A Gloomy Track-Record: a colleague died, eight suffered serious injuries and two others were about to lose their lives only in the first 2 months of year

A continuous string of work incidents, eight L.T.I.s and one fatality: these are the catastrophic results that we recorded on the safety front only in the first two months of 2015! Five new high-severity accidents that resulted in temporary disability, added up in April and May

The shock was all the greater as it came after a relatively long period when our results seemed to be on the right path. Since 2006, the number of fatalities has decreased, as well as the frequency rate of “habitual” accidents. We have recorded three consecutive years without any life lost on our steel platform, but also an impressive number of months with Zero accidents. Consequently, a significant number of analyzes were conducted revealing the need for open and frequent interaction with the workers on the shop floor. A local video displayed within the H&S Day, was produced in order to explain the worrisome circumstances we found ourselves at the time and a set of rules implemented by means of which we can counter these undesirable outcomes, entitled “4 + 1”, namely: The Cardinal Rules, H.I.R.A. (Hazard Identification and Risk Assessment), R.C.A. (Root-Cause Analysis), H & S visits targeting a new approach focused on strengthening the safe behavior and last but not least, the Ideas of Progress, with an impact on safety.

ArcelorMittal Galati

Sustainability Report2015

Lot time injuries among employees and contractor

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Outcome 1

Over 80% workers believe that during the H&S visits, their superiors get closer to them.

More than 90% of our own personnel and contractors participated in the communication meetings organized within the Health and Safety Day up to mid-May.

„Nothing is More Important than the Health and Safety of Our People”

It is the statement reconfirmed by our CEO, Bruno Ribo, in front of the the management, authorities and local media representatives at the public conference held at the beginning of the Health and Safety Work Day, on April 28th.Reality shows that, despite an amount of 33 million Euro invested in the last 5 years in safety systems in our unit (personal protective equipment, individual gas detector, locker rooms, safety belts, hard caps with built in goggles and headphones, revised equipment containment, state of the art scaffoldings), we have dealt with two fatalities in 2014 and another one in early 2015, to which a considerable number of serious injuries was added in the current year. 80% of cases occurred during maintenance work because of inadequate risk assessment and defective preparation of works. Moreover, 10 of 12 accidents could have been avoided if the rules and procedures had been observed.

During the period prior to the Health and Safety Day a competition was rolled out, addressed to our children, with the challenge to take photos or make drawings to urge their parents pay close attention to their own safety.Throughout the day dedicated to health and safety, a series of activities were carried out, related to hearing protection, medical investigations, and first aid exercises, demonstrations of the medical staff of the Ambulance Service operating inside the Plant.

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Outcome 1

ArcelorMittal Galati

Sustainability Report2015

The LO/TO Project (Lockout – Tagout) in ArcelorMittal Galati

This project is based on an analysis of all the risks for every intervention to the equip-ment. The module implementation leads to: a better traceability of isolation equipment, eliminating human errors, optimizing the process steps of isolation and time savings.

A New Medical Service Package

In 2015, a free package of additional medical services for the employees was released. The new package is a complex one, negotiated with our supplier, the company MedLife and it includes: a full set of blood tests, x-rays, ultrasound, specialized examinations, a Service Call Center and a package of discounts in the MedLife partner networks.“I encourage all our colleagues to use this free package of supplementary services both when in need of health investigation or as a preventive action. This initiative represents the transition from the legal obligation to the real care for our employees”, said Mihaela Craciun, the Head of Human Resources Department.

New Campaigns for the Health and Safety Week

The Health Week, held in the beginning of October, has enjoyed the participation of almost 1,800 employees who were involved in specific various activities, many of them as a first. A novelty was a visit during this week that our colleagues have been able to make at the Hyper clinic MedLife in the city, in order to become familiar with the offer of health services, which all of us can take advantage of for free starting July 2015.

“Our Health is our Greatest Asset” is the slogan under which two important actions during this week were also carried out: the vaccination campaign against seasonal influenza, addressed to all employees, but also an opportunity for those working in the Primary area and the Mills area, who are exposed to hazards, to test their lung capacity - using spirometers brought on the shop floor - but also the blood pressure or blood glucose, after which they were offered fresh fruit.80 steelworkers enrolled in a program for smoking cessation counseling and many more have given up packets of cigarettes for apples and shirts with a motivating message on.A campaign for encouraging blood donation was also supported by way of vouchers.A first aid training course has started for all colleges in all the production areas so that everyone can be able to act in cases of medical emergency.

“Health Promotion through Motion”, another topic of the Health Week program was addressed by way of an outdoor physical activity: a bike competition, a walk on the esplanade and a cross for all ages.

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Outcome 1

B.B.S. Visits, Jointly with the Employee Representatives

A new type of visit, which aims to correct unsafe behaviors, was started in joint teams including representatives of trade unions from the Plant, members of the Steering Committee and Heads of Departments. The aim is to gradually integrate the social partners in the training process, involving two stages: a theoretical and a practical one. The new BBS visits contribute to changing our mentality and behavior, simplifying methods of prevention and analysis work incidents.

Galati Health and Safety, under Group Specialists Focus

For two days in a row, Galati hosted the meeting of the Safety and Health Committee at Global level of ArcelorMittal. Groups of experts and union representatives visited our facility in order to identify methods to improve our results in labor safety through dialogue with our specialists, the local management and the trade unions representatives.Participants visited several manufacturing sectors, especially those where fatalities or serious injuries occurred, so as to identify deficiencies that we still have in complying with standards. Following visits to the Sintering Plant, the Blast-Furnace, the Steel-Melting-Shop and the Heavy Plate Mill, remarks were noted such as: the need for a closer proximity to workers, streamlining audits by comparing results internally and externally, improvement of a safe behavior in every situation and last but not least raising awareness by observing problems and immediate reaction.

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Outcome 1

ArcelorMittal Galati

Sustainability Report2015

ARC 2020E Safety Internal Communication Program

The Plant management took part in training on issues related to safety, During September 2015 – July 2016, all ArcelorMittal Galati employees were invited to meet the CEO and discuss freely about with the current economic context the unit is facing, with the challenges and achievements, abitions and plans, values and objectives. The participants have been explained that the transformation is not a temporary way of life, but a permanent one, the only way to ensure a future for the Plant and their jobs with a number of highlights on: Safety, Quality and Services, Maintenance and taking care of the equipments. All the grievances or referrals raised by the employees have been centralized for adequate solutions.

The South Gate Arrangement

The South Gate revamping works were inaugurated in November in the presence of representatives of contractors, of an interdepartmental team that worked on this project and trade unions, who had the initiative of this project.This is the first step in a multi-annual project in four phases. The works were finished on time, within budget and without accidents. This first phase of modernization was worth about Euro 618,000, and involved the division of the entry and exit lanes for the heavy vehicles, designed to carry goods, not intended for passenger transport. The value of the entire project to redevelop the area will rise to nearly Euro 1. 6 million.

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Outcome 2

We want our steel to become the material of choice for the designers and manufacturers of consumer products, because it’s strong, durable and innovative, and its robust sustainability credentials over its full lifecycle are widely understood and recognized.

Products that accelerate more sustainable lifestyles2

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Outcome 2

ArcelorMittal Galati

Sustainability Report2015

Products that accelerate more sustainable lifestyles

Much of the fabric of modern life – cars, ships, railways, buildings, even ski lifts – all rely on the strength and versatility of steel. Combining aesthetics and mechanics, it is used by architects, engineers and designers around the world. And steel is set to play an even bigger role in the future, as sustainability and environmental stewardship climb up the agenda for governments, companies and consumers, partly because steel is 100% recyclable.A tonne of steel also produces less CO2 than either aluminium, magnesium or carbon fibre over its whole lifetime, thanks to its infinite recyclability.

We need to promote the use of steel wherever its unique properties can be exploited to a maximum. We have the research to show where steel’s environmental footprint is better than other materials, and we need to use and build on this capability to demonstrate to the manufacturers who use our steel, and society in general, that steel can make a positive contribution over its whole lifecycle.

Achieving more sustainable lifestyles is a shared challenge, and steel has a massive contribution to make. It is already playing a key role, for example in making cars lighter, which reduces carbon emissions, and in providing goods and packaging that are easily recyclable. Its strength, durability, and recyclability make it a vital material to support sustainable lifestyles in everyday products from drinks cans to washing machines.

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High Added Value Products

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Outcome 2

Our unit delivers a great range of steel grades for a variety of industries:• Structural Steel (industrial constructions, commercial and residential constructions, civil engineering) • Shipbuilding Steel (container ships, tankers, multi-purpose vessels, coaster vessels, tugs, offshore support vessels, pontoons, floating docks, barges) • Windmill Steel (onshore tubular wind towers)• Energy pipes steel (oil and gas line pipes) • General purpose pipe steel (boiler pipes, construction and industrial pipes, water pipes), Pressure vessels steel (cylindrical and spherical tanks for gas and liquid storage/ transport, boilers, condensers) • Steel for Mining equipment and Yellow goods (high strength steel for lifting and transportation equipment)• Steels for Cold Forming and Deep Drawing Application• Steel for White Goods

However, in the last years, as a result of the ever- changing market, our unit has gone from the classic approach of delivering basic steels to identifying and developing custom made solutions to meet customers’ needs and to bring high added value to each client. Our product development team has made efforts to deliver the best solutions for any of our clients’ projects, offering new high added value steel grades that have been developed to serve our clients in the energy pipes industry, shipbuilding, offshore and pressure vessels industry. TMCP (Thermo-Mechanically Controlled Processed) Steels

With the use of the TMCP process, very fine and uniform acicular ferrite is attained as microstructure, and therefore TMCP steels have higher strength and better toughness. Also, according to the TMCP process, lower hardenability, less susceptibility for cold cracking and the availability for the extra high heat input welding have been improved. The overall consequence is that the quality level of TMCP steels is quite high with the mechanical properties of TMCP steels remaining generally very stable.

High-strength low-alloy steels (HSLA) High-strength low-alloy (HSLA) steels, or microalloyed steels, are designed to provide better mechanical properties and/or greater resistance to atmospheric corrosion than conventional carbon steels. High-strength low-alloy steels provide better mechanical properties or greater resistance to corrosion than carbon steel. They have a carbon content between 0.05–0.25% to retain formability and weldability. High-strength low-alloy steels include many standard and proprietary grades designed to provide specific desirable combinations of properties such as strength, toughness, formability, weldability, and atmospheric corrosion resistance. They are used in cars, trucks, cranes, bridges and other structures that are designed to handle large amounts of stress or need a good strength-to-weight ratio. HSLA steel cross-sections and structures are usually 20 to 30% lighter than a carbon steel with the same strength.

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Outcome 2

ArcelorMittal Galati

Sustainability Report2015

The Organic Coating Line, for better roofs. Quality improvements in Galva

The Galati Plant has decided to invest in a pre – painted products line, to be fully operational in 2016. Complex preparation works were deployed in 2015 for installing the line. The organic coating line will help ArcelorMittal Galati bring value through high quality products and superior service to serve better the local market, currently dominated by imports, but showing a promise of growth. With a 100.000 tons per year capacity, the new line will supply the domestic market and will produce strips over a large range of thicknesses and widths, single and double - sided coatings of various depths in both gloss and matt finishes.

The investment targets to satisfy the customer expectations of all segments like: roofing, drainage systems, sandwich panels, industrial coolers and refrigerator panels and others. Significant investments and improvements are also being carried out in the Galati Galvanizing Line in order to provide an excellent underlying layer for the coating line.

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Outcome 3

We want our steel to become the first-choice material for public bodies who commission and approve construction projects, and the firms that design and build them, because they know that steel is part of the answer for a low-carbon circular economy, and not part of the problem.

3 Products that create sustainable infrastructure

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Founded in 1997, DMHI is a 51-49 joint venture between Korean shipbuilder DMSE, respectively the 2-Mai Mangalia Shipyard owned by the Romanian government. Each year, DMHI builds around eight ships for European clients, mainly German and Greek ship-owners. It holds a leading position within the Romanian shipbuilding industry with 150 thousand tons heavy-plates consumption in 2015. Since 2006, DMHI has sourced heavy-plates for its activities from ArcelorMittal Galati on a project-by-project basis. Scorpio deal included the heavy-plates requirements for 4 identical Capsize dry bulk-carriers of 180,000 DWT.

Heavy-plates at the heart of shipbuilding

The heavy-plate steel product is used to make the hulls of almost every large vessel constructed today and the Scorpio bulkers built by DMHI are no exception. ArcelorMittal Galati supplied more than 5,000 different line-items for the Scorpio project, in thicknesses ranging from 6 to 65 mm. Widths of the plate varied from 1,500 to 3,200 millimetres (mm), while the length ranged from 5,000 to 15,450 mm.

Complexity of the technical requirements.

The normal scrap rate for a Korean shipyard is around 3 to 4%, significantly below the international average of 10 to 12%. Ship costs optimization based on significant reduction of scrap is done by DMSE at the design phase. For a bulk-carrier, it results to 5,000 different line-items (unique heavy plate specification characterised by grade, thickness, width and length) versus only few hundred different line-items used by other European shipbuilders. Complexity of the design assures an important competitive advantage. To further improve their efficiency, DMHI specified that orders would be booked and delivered in blocks in a timeline running from June 2014 through to May 2015. To further optimize their stock costs, DMHI also required each shipment to be delivered on time and in full.DMHI specified that the heavy-plates should meet requirements set by the American Bureau of Shipping (ABS), a common standard in the shipbuilding industry. The ABS standards typically specify the yield strength of the heavy-plate. The Scorpio project required steels with a minimum yield strengths from 225 to 355 megapascals (MPa).

Success leads to new business

ArcelorMittal’s flexibility and the involvement of personnel from every level of the business have ensured that Scorpio contract has pro-ceeded successfully. The efforts ArcelorMittal has made have been noted by the customer. “We appreciate the good cooperation with ArcelorMittal and we expect that the same will continue for the future,” notes DongHee Cho, Purchasing Director for DMHI. The cooperation between ArcelorMittal and DMHI has had tangible benefits. The companies have signed a contract for a new project which will cover the building of four smaller ships, which will require around 60 thousand tonnes of heavy-plate. Deliveries began in the second quarter of 2015.

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Outcome 3

ArcelorMittal Galati

Sustainability Report2015

The steel industry is meeting much of the world’s need for sustainable construction and infrastructure. It is strong enough to build skyscrapers, versatile enough to meet any construction challenge, and endlessly recyclable at the end of its useful life. Our researchers can calculate where steel will bring added sustainability value compared with other materials, due for example to its lower ‘global warming potential’ score. And our innovations can ensure that modern infrastructure produces fewer carbon emissions and is more energy-efficient.ArcelorMittal Galati deployed in 2015 a strong product development plan. This plan consists of a mix of open feasibility studies for specialized grades and also trials in our production facilities and laboratories. Most of the new grades are used in infrastructure projects such as: bridges, energy and other fluids pipes, wind mills, silos and roofing. Our plates capabilities, amounting a total of 1.5 million tons, of hot rolled quarto plates, deliver for infrastructure key applications such as: industrial constructions, commercial and residential constructions, onshore tubular wind towers, oil and gas pipes, industrial and water pipes, pressure vessels (tanks, boilers and condensers) and others.

Delivering steel for DMHI’s Scorpio project

Products that create sustainable infrastructure

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Outcome 3

Green energy using Galati-produced steel

Our plant developed in the last years numerous grades of steel for parts of wind mills. These grades have specific technical specifications and have to resist the environmental and exploitation challenges. ArcelorMittal Galati has been supplying or is currently supplying plates for wind turbines producers from Greece, Poland, Czech Republic, Ukraine, India and Turkey. The clients benefited from short delivery terms for the quantities ordered, tailored logistics solutions and a strong proactive communication system for checking the order’s status. The steel grades produced by the Galati Unit are suitable for manufacturing the most important parts of a turbine: blades, nacelle, rotor hub, tower, foundation and construction works.

ArcelorMittal Galati, as a major energy consumer in Romania, understands the importance of supporting the use of competitive renewable energy in order to mitigate the climate changes and to improve the energy security. But, at the same time, the Company believes that, subsequently, the balancing and backup of the support schemes system should be better addressed.

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Outcome 3

ArcelorMittal Galati

Sustainability Report2015

ArcelorMittal Galati, Supplier for the Longest Suspension Bridge in Turkey

ArcelorMittal Galati plays an important role in the construction of Izmit Bay Crossing Bridge, supplying an important share of the flat steel needed for this grand project, launched in 2013. Approximately 55,000 metric tons of heavy plates are used in the construction, 20,000 metric tons for the towers and other 35,000 metric tons for the deck. The entire quantity used for the deck part of the bridge was covered by ArcelorMittal Galati, which delivered the steel grades S355N/NL, S420M/ML, S460M/ML – to one of the company’s main customers and the manufacturer of both the bridge’s deck and towers. “Our Galati heavy plates mills facilities are capable of producing and delivering the requested plates for various applications, but this project has a special importance for us”, said Bruno Ribo, Chief Executive Officer ArcelorMittal Flat Europe, East – South Business Division. “We have tailored special technical and commercial solutions for this project and we are proud to be part of this prestigious infrastructure element creation“, said Abhijit Sanyal, Chief Marketing Officer of ArcelorMittal Flat Europe, East – South Business Division. With a total length of 2,682 meters and a free span of 1,550 meters between its pillars, Izmit Bay Crossing Bridge is the longest suspension bridge in Turkey, the second longest in Europe and the fourth longest in the world. Part of a 420 kilometers highway project, the bridge that crosses the Bay of Izmit will shorten, after its completion in 2016, the distance between Istanbul and Izmir by about 140 kilometers and will provide three lanes of traffic in each direction. Not only is Izmit Bay Crossing Bridge impressive in terms of length, but also in the complexity of its structure. Located close to the North Anatolian Fault, one of the most seismically active areas in the world, the bridge needed a special earthquake resistant design, which was achieved by building its pylons on a concrete foundation that rests on a large gravel bed the pylons can slide on in the event of a major earthquake.

18 Communities benefit from the slag supplied by ArcelorMittal Galati

ArcelorMittal Galati provided 27,000 tons of slag for fixing and improving the roads infrastructure and other infrastructure elements. Numerous communities from Galati County received quality aggregate slag for building local roads or for repairing dykes. The company certified the aggregates for various construction projects and infrastructure works. The quality of the aggregates was recognized after tests and technical research. Galati Plant is ready to offer slag volumes for emergency situations such as flooding. Also, the unit will continue to support the communities with these materials in the years to come.

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We want to be acknowledged for using resources in the most efficient and effective way, so that we are creating significant value for our customers and shareholders as well as for the environment.

Efficient use of resources and high recycling rates4

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Outcome 4

ArcelorMittal Galati

Sustainability Report2015

The respect for resources

The resources are more and more difficult to find and to preserve. ArcelorMittal Galati is an acknowledged local and regional leader in exploiting the resources in an efficient manner, in the best interest of our stakeholders and community.

The new scrap facility

In 2015, a new scrap facility was commissioned, in collaboration with one of our contractor companies. The new scrap yard benefits from innovative equipments to manipulate and to sort various types of scrap and to prepare it properly before using this valuable resource in the Steel Melting Shop Converters. The investment, amounting EUR 7.2 Millions also allows reducing the transportation costs, as the previous scrap yard was located at almost 5 kilometers distance from the beneficiary.

Exploiting the Slag Dump

ArcelorMittal Galati continued to exploit the Slag Dump, in order to re-introduce in the production flow the scrap abandoned in 50 years of existence of our Plant. Extracting scrap (in various forms, from skulls to scrap “B” and “C”) is not only improving our costs, but also environmental – friendly, as the carbon footprint of a tonne of recovered steel is better than a new-produced one. The exploitation of the Slag Dump is now done with specialized companies, using surface-mining technologies.

Specialized warehouses for hazardous and non-hazardous wastes

All the hazardous and non-hazardous wastes are now deposited in a special designed and built location named “Depozitul Valea Lupului”. In full accordance with local law provisions, the wastes are sorted and taken by specialized companies in order to be fully recycled and to re-enter in the economic circuits. The same approach is for hazardous wastes, which are now handled in an indoor location, secured and surveyed. Through this approach, all the wastes are re-introduced in the production flows of various industries. In 2015, an amount of 165.867t of non-hazardous wastes has been processed, and also to be noticed is the increase in the percentage of wastes domestic recycling, of 39.8% as compared to 2014. The results of indicators concerning wastes management (generating, valorification/recycling, elimination) for 2015 were at a better level than the targets set in the beginning of the year:

2015 Key fact:18% decrease of fuel usage due to the modernization of BF5

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Outcome 4

Blast Furnace Gas – a superior utilization

The Blast Furnace gas - a product resulted from the primary flow operations - is now better used in order to reduce as much as possible the flaring. As this is a combustible gas, a technical solution was found to fuel a number of re-heating furnaces from Rolling Mills using this gas. This initiative brings also a saving for the company, as in the past the beneficiary furnaces were using especially methane gas.

Steam for the community

ArcelorMittal Galati provided high quality steam for preparing the hot water of the city, through the centralized public heating system. This initiative is not only a support for the community of Galati, which is facing the difficulties of sustaining the centralized heating system but also more environmental friendly, as we are using combustible technical gas from our production flows.

Steel Shop Sludge retention: more efficiency and more respect for the environment

With the support of an external company, ArcelorMittal Galati implemented a technology to retain the Steel Melting Shop sludge. In the past, this material (present in evacuation waters) was naturally deposited as sediment in the technical ponds in the nearby of the Plant. Now, the sludge, rich in ferrous material, is reintroduced in the production flow, after retaining it at the Steel Shop and the quality of the technical waters is much better.

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Outcome 4

ArcelorMittal Galati

Sustainability Report2015

New demineralization water station

ArcelorMittal Galati commissioned a brand-new station for demineralizing the waters used in various production processes. The new equipments provide high quality demi-water, produced in highly developed technologies, with a minimum impact for environment and better costs. This investment also increased the efficiency of the plant, now self-sufficient with this product.

2015 - Lowest lime consumption in SMS

In the end of 2015, a historical record was reached in the SMS: the lowest specific lime consumption in the converters. This result is the consequence of several successful technical achievements, including the investment made in BF no. 5, which made possible the production of pig iron with a low percentage of silicium. At the same time, from August on, once the activity in Lime factory no. 2 was stopped, only high-quality exteral lime was used for the process. Furthermore, „the mathematical pattern for calculating the necessary lime”, depending on the content of silicium from the pig iron, was implemented. „Operators from converters were fully involved in implementing, monitoring and adjusting the technological process, in order to avoid deviations from the chemical analysis, which may arise, as a result of decreasing the lime consumption. The effect in costs of decreasing the lime consumption is of EUR 1.83 per tonnes of liquid steel, but more important is the reduction of iron losses, due to reduced amounts of slag, a cost of EUR 2.7 less per tonnes of steel produced”, said Sorinel Nafornita, process engineer in the SMS.

2015 - Lowest lime consumption in SMS

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We want our stakeholders to trust us to share the vital resources of air, land and water because we operate responsibly and transparently, demonstrate that we understand and want to improve our environmental impacts and work in collaboration with partners and local communities to protect and enhance the natural resources we all rely on.

Trusted user of air, land and water5

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Outcome 5

ArcelorMittal Galati

Sustainability Report2015

Stakeholders meeting

Members of ArcelorMittal Galati management met representatives of local authorities, environmental NGOs and mass-media to discuss the highlights of our activity, with a focus on our headways in terms of environmental projects. Bruno Ribo, the CEO of our unit, updated the attending guests on the situation of ArcelorMittal Galati within the current economic realities. A stress was laid on our bad late results in Health and Safety, our output increase this year, planned to exceed 2 million tonnes of steel, our focus on added value products and the change in the customer service and equipment reliability approaches. “Since Q3 of 2014, we have been recording a positive operational result, which is a major financial improvement, but our financial net result is still a negative one. This means that the mother company continues to support our investments which raise to over EUR 40 million this year. In addition to that, we aim at 15% better energy efficiency, which is still a hot spot for our business”, Bruno Ribo informed the audience.

In the second part of the meeting, Vespasian Popescu, the Head of the Environment Department, presented our recent accomplishments regarding the reduction of dust emissions in the sinter plant de-dusting installations, from 60 ÷ 145 mg/Nm3 to 30 ÷ 50 mg/Nm3, by bringing the installations back to the initial state and by preventive maintenance. The new approach will be applied to the other de-polluting installations from plant. Then, the main topic of discussions was the commissioning of the BOF sludge retention installation, a project having three major benefits: reusing the sludge as a raw material in the Sinter Plant (as the sludge has a 45% iron content), reducing the water consumption by 400 m3 per hour and preventing the clogging of Malina North pond. The guests were invited to visit the new investment at the SMS at the end of the discussions.

ArcelorMittal Galati focuses all the time on finding methods in order to protect the environment where we live and produce our sustainable steel

Key facts: Prolongation of the slag dump exploitation till 2023Water consumption decreased by 57%, as compared to 2009

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Outcome 5

Public debate for the issuance of the new Environmental Permit

Environmental authorities, ecology activists, journalists and people from our community attended the Public Debate organized within the procedure of the new Environmental Integrated Permit issuance. During the debate, a comprehensive report regarding all the environmental aspects related with our company was presented to the attendants. The document, which was drawn up by an authorized company, brought detailed clarifications on the environmental status of all our equipments, about the environmental indicators and also the efforts for protecting the air, soil and water around the Steel Plant. Both the document and the opinions from the participants were convergent with the idea that

our company fully complies with all the environmental law provisions, in all the aspects.

“I attended the previous debate in 2007 and then I made some observations and also some criticism. Now I have to admit, for me there is nothing to comment regarding how the Steel Plant is protecting the environment”, stated Petruta Moisi, representing a local specialized NGO. Answering a question from a journalist, Bruno Ribo, Chief Executive Officer, said that in the latest years, the Plant spent more than EUR 150 Millions both on environmental investments, but also for operating the de-pollution equipments.Consequently, in August, the Environmental Protection Agency issued the Environmental Permit no.1/24.08.2015, valid until August 23rd 2025. The Environmental Permit is issued in compliance with the provisions of the European Directive 2010/75/UE regarding industrial emissions, transposed in Romanian legislation by Law no.278/2013.The new permit also allows the prolongation of the slag dump exploitation until 2023, with the remark that in 2024 it will be closed and ‘greened’.The permit’s provisions are applied to all the activities carried out on the platform, from the reception of raw materials to the shipping of finished products.Complying with all the conditions imposed by the Environmental Permit is mandatory.

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Outcome 5

ArcelorMittal Galati

Sustainability Report2015

Environmental investments: Steel Shop Sludge retention: more efficiency and more respect for the environment

Our constant preoccupation regarding the protection of the environment where we perform our operations led to an important investment in the Steel Melting area. With the support of an external company, ArcelorMittal Galati implemented a technology to retain the Steel Melting Shop sludge. In the past, this material (present in evacuation waters) was naturally deposited as sediment in the technical ponds in the nearby of the Plant. Now, the sludge, rich in ferrous material, is re-introduced in the production flow, after retaining it at the Steel Shop and the quality of the technical waters is much better.

Water consumption in ArcelorMittal Galati

The water consumption of ArcelorMittal Galati was reduced this year, too, due to several important measures, such as the identification and removal of water losses from networks and the implementation of projects for water recirculation. Our colleagues succeeded to achieve for 2015 a target of 11.1 m3/t LS, a decrease of 52% as compared to 2010, when we started to reduce the water consumption of the Plant. For 2016, our colleagues envisage a target of 11m3/t LS

Evolution of dust emissions

At ArcelorMittal Galati, we make constant efforts to provide to the community we are part of and to our families a clean and healthy environment. In this respect, one of our constant concerns is the quality of air, that is why we give a great importance to our dust emissions and we continuously monitor them.According to the below graph, the highest share of the total quantity of dust emissions is represented by the Primary area, respectively the Sinter Plant.

However, the dust emissions level is aligned with the target set for 2015, which was 1357 t.

Evolution of dust emissions in tonnes

t

Evolution of the industrial water consumption in ArcelorMittal Galati

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We want our stakeholders to trust that we are making a positive contribution to a lower-carbon future because we are cutting our energy use and carbon emissions, and developing innovative new products that help our customers and other industries do the same.

Responsible energy user that helps create a lower carbon future6

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Outcome 6

ArcelorMittal Galati

Sustainability Report2015

2015 was a step stone for the politics regarding the climate changes with an inevitable impact on our company. Locally, significant changes are already underway which have demanded a response from ArcelorMittal. On 23 October 2014, European Union leaders debated the final draft of the 2030 Climate & Energy Framework, which ambitiously targets a cut in carbon emissions by energy-intensive industries, including the steel industry, by 43% from 2005 levels, part of the broader plan to reduce greenhouse emissions by 80-95% from 1990 levels by 2050 and achieve energy savings of 20%. In theory, the framework focuses on reducing greenhouse-gas emissions, increasing renewable energy, making energy supplies more secure and affordable, and encouraging Europe to become more energy efficient. However, we believe the emissions reduction targets are jeopardizing the re-industrialisation of Europe: these measures will raise energy costs further and lead to greater uncertainty. And despite investing in improvements, the steel industry in Europe does not have the technology to achieve the emissions reduction targets proposed.

2015 Key facts: 4,288,727 tonnes of direct CO2 emissions

15% reduction of the energy consumption by way of ENERGIZE projects

Eur 16 million invested in energy efficient projects

Issuing our first Energy Policy

Our Plant issued – for the first time – its Energy Policy, a general document which shapes the fundaments of all our commitments and ambitions related to the energy. The Policy states that we understand and are committed to the obligations stipulated under the European Union and Romania specific laws. The policy also sets out specific targets for our Unit:

• improving the preservation performance and using the Energies in order to reduce the greenhouse gas emissions and any further impact on the environment; • reducing to minimum possibly the consumptions of fossil fuels through a permanent optimization of the processes parameters; • cutting the energy costs based on its systematic and adequate management. Our Plant, by way of numerous projects already implemented and the ones approved for the next years on energy strategy, continues the recent years work to reduce the energy consumptions by 15% before the end of 2016, in order to increase its competiveness.

ISO 50001 Certification, on the Energy Management System in ArcelorMittal Galati, was obtained in November 2015 and remains valid for the next 3 years , with the yearly Lloyd`s mandatory surveillance audit.

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Outcome 6

CO2 emissions per tonne of steel produced

Since 2007, when Romania joined the European Union, ArcelorMittal Galati participates as operator at the European Union Emission Trading Scheme (EU-ETS).This scheme is a tool aiming to promote the reduction of greenhouse gases emissions at the European Union level being based on the “cap and trade” principle used under the frame of the EU policy on climate change, not being a mechanism provided by the Kyoto Protocol*. A cap is set on the total amount of greenhouse gases that can be emitted by all operators. ‘Allowances’ for emissions are then auctioned off or allocated for free, and can subsequently be traded. The operators must monitor and report their CO2 emission, which is the main greenhouse gas, ensuring they hand in enough allowances to the authorities to cover their emissions.EU- ETS was applied in the first phase (named trial phase) during the period 2005 - 2007, being followed by the second phase (named commitment phase) developed in 2008-2012 period. The third stage of EU-ETS began on 1 January 2013 and will run for eight years, until 31 December 2020.The footprint of ArcelorMittal Galati in 2015 was of 4,288,727 tons of direct CO2 emissions. The diagram belowpresents the evolution of the CO2 emission factor in relation to the liquid steel production during 2008-2015.

*The Kyoto Protocol is an international treaty which extends the 1992 United Nations Framework Convention on Climate Change (UNFCCC) that commits State Parties to reduce greenhouse gases emissions, based on the premise that (a) global warming exists and (b) man-made CO2 emissions have caused it.

The closure of Coke Oven Plant and transition process to align with the monitoring rules are pointed out in 2008- 2009 period. The decreasing trend of the CO2 emission factor is revealed during 2010-2015 period.Implementation of Blast Furnace 5 modernization starting with 2012 and “Energy Saving” projects allowed the obtaining of ambitious carbon footprint reduction goals of 15%. In 2013, the emission factor fell below the baseline of 2 t CO2/t LS.These results are due to ArcelorMittal Galati reduction of its consumption intensity of materials with high carbon content as coke and coal.The main projects developed during 2009-2014 period converged into the reduction the CO2 footprint of ArcelorMittal Galati were:• BF5 modernization;• Modernization of sinter plant 2 (machine 5 and 6);• Utilities modernization:• Modernization of 5 boilers to reduce natural gas consumption;• Modernization of turbo-blowers associated to BF5 to reduce overall energy consumption;• Modernization of 2 turbo-generators to recycle blast furnace gas.

Specific energy reduction / tonne of HRC equivalent

* * BP= Business Plan

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Outcome 6

ArcelorMittal Galati

Sustainability Report2015

A New Vacuum Pump

ArcelorMittal Galati invested EUR 3 million to implement an upgrading project at the Steel Melting Shop, aimed at increasing the energy efficiency of the Plant. The new revolutionary vacuum pump from the Steel Melting Shop R.H. secondary metallurgy area will support the Company’s programme to improve the operations of the unit by providing a better treatment for the liquid steel and assuring predictability in supplying the necessary raw materials.“A major aspect of our strategy is to increase the energy efficiency of our operations and, thus, to increase our competiveness at local and regional level”, said Bruno Ribo, Chief Executive Officer of ArcelorMittal Galati. “Not only that this investment will support our cost reduction strategy, but it will also increase the quality of the plates manufactured in Galati. Thus, we manage to continue increasing our competitiveness, consolidate our position in the region and respond to the demands of our customers.”The vacuum pump is degassing the liquid steel and eliminating the Hydrogen, with positive effect in the quality of the final products, especially for plates. The former vacuum pump used high pressure steam – pur-chased externally - but the new one is using low pressure steam, produced internally, with excellent costs. Also, the new pump is degassing better and faster the liquid steel and brings

immediate energy and financial savings. The equipment was supplied by “Danielli”. The investment is part of ArcelorMittal Europe’s “Energize” Project focused on reducing the energy consumption by 15% by 2016. The action plan under this project covers a wide range of areas, from energy-efficient equipments and processes, to office activities and involves all parts of the business, from operations, to maintenance, investment and purchasing.

Investing in the Future of Steel

During 2015, ArcelorMittal Galati completed two investment projects which have reduced the energy use and increased energy generation. The projects consisted of the installation of a new variable frequency drive (VFD) exhaust motor on BOF 1, and the revamping of two turbo blowers and a generator.

The quickest project was the installation of new VFD motor which took just three weeks. The existing exhaust motor consumed between 2.2 and 2.4 megawatts (MW) of electricity per hour. By contrast, the new VFD motor only runs at high capacity during blowing, reducing energy consumption to 0.7 MW/h. “This investment has led to significant drop in energy use and emissions and will be paid back in less than a year,” says Norel Corneliu Jantea, energy project manager.During 2015, ArcelorMittal Galati also redesigned the air flow of two turbo blowers on Blast furnace 5. A turbo generator, powered by steam produced with blast furnace gas, was included in the redesign and now produces up to 5,000 MWh of electricity. The changes will reduce the mill’s energy costs and environmental footprint. Total cost of this project was EUR 8.25 million which will be paid back within 3.1 years.

Transforming the Internal Transportations

The vision for the transformation of rail transportation consisted in the coordination, management and monitoring of the railway shunting through a central dispatcher where all operations performed on the steel platform are monitored and managed in real time, along with innovations and modernization of rolling stock.The transformation results in achieving a transport system dedicated to the steel producing area by operating remote locomotives and switches and automatic coupling and uncoupling of the wagons.In the summer of 2015, the first electric locomotive powered by batteries was inaugurated at national level in Galati. It is used in the charge and discharge fronts. This engine uses Lithium- Ion batteries, charged every two hours at a power station nearby. The locomotive battery has a range of up to 12 hours and led to a decrease by 95% of fuel costs.

Also, maintenance costs have been reduced as such, increased labor productivity and, first of all, it has generated a significant decrease in pollution.In order to increase efficiency in service, decrease costs, based on strategy, the Internal Logistics Department is going to expand for the future the transformation of the classic locomotives into batteries powered locomotives.

Turbo blower parts waiting to be installed at ArcelorMittal Galati

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We want our customers to trust that we live up to their standards, both in our own steel and mining business, and in our supply chain.

Supply chains that our customers trust7

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Outcome 7

ArcelorMittal Galati

Sustainability Report2015

Supply chains that our customers trust

In 2015, EUR 883 Millions were spent for purchasing products and services. More than a half are from Romanian economy.ArcelorMittal Galati used hundreds of suppliers and purchased goods and services from the national economy amounting - in 2015 - roughly EUR 445 Millions.

Our Supply Chain transformation

Part of our overall transformation, the supply chain modernization will improve our value chain and will help to manage better the risks and seize of the opportunities.

“Specific logistic solutions for raw materials, better and faster shipping solutions for our close and remote customers, a better and more efficient structure and clear ethics rules will bring us closer with our stakeholders: customers and suppliers”, said Bogdan Grecu, the Head of Supply and Demand .

2015 key facts

Clarity and traceability of our inputs, production phases and deliveries

The steel produced in Galati is serving customers worldwide, but it is in our attention to ensure the traceability of our products.

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Outcome 7

Implemented since 2013, a project consisting of a web platform to follow online the status of the logistic processes, but also to optimize it started to show the results. Now, through it, the allocation of transport orders is optimized in order to obtain better costs and to reduce the waiting times. The transportation orders are now automatically assigned. The transportation is now more efficient, as the charging hours are reserved as per the availability of the loading point. Also, the system is permanently monitoring the performance of the transport suppliers.

The traceability of our products – PELICAN Project

PELICAN Project is a totally new integrated system for advanced planning and manufacturing execution. Basically, the system allows to have a clear traceability of the products in any step of the production flow, from the Steel Shop until the coil and plates are delivered to the customer. Order processing and the product configurations are now clear and easy to follow . Also, the system allows to follow strictly the material usage, the inventories, the status of the products in the flows, the quality parameters, the internal logistics and the warehouse management. Since 2011, a detailed scheduler and a planner were implemented thanks to this system. In 2016, there are scheduled to be finalized other important steps, such as the Manufacturing Execution System for the Continuous Casting and the Advanced Planning System for plates.

Our challenge - Supply Chains that our customers trust

We need to manage our supply chain actively and effectively, so our stakeholders and customers can be confident that our suppliers behave ethically and work towards upholding robust environment and social standards.

Simpler logistics, better costs

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Outcome 7

ArcelorMittal Galati

Sustainability Report2015

The outcome we need

We are confident that our suppliers live up to our own standards because we know we manage our supply chain responsibly and are trusted to do so by our customers and stakeholders. All our suppliers are asked to acknowledge our code for responsible sourcing or commit to equivalent standards. When we register a new supplier, we require them to agree to the terms of the code.

The company started to assess the risk linked with the suppliers in various domains such as: Ethics, Economic Sanctions and Environment. The suppliers and vendors are assessed in regard with complying with our standards apart with the checking in terms of Health and Safety, and Financial Analysis. This comes in parallel with the profound transformation of our purchases, a process started in 2015, which aims to use the advantage of the size of our Group and to streamline these operations.

Our code for responsible sourcing

The code for responsible sourcing covers wide and important aspects such as: health and safety, human rights, labor standards, business ethics and environmental management.ArcelorMittal Galati is organizing recurrent training for the buyers in order to update them with all the aspects of the code. We ask the new local suppliers to agree with the terms of the code. Moreover, via our Security structures we are checking if the suppliers are using workforce in full accordance with the Romanian and international labor law provisions. All these aspects are regularly shared with our suppliers and vendors on yearly meetings.

“We have 100% clarity when it comes to the customers we are delivering to. In the meantime, we are ensuring that our steel is used for all the applications except those excluded from international laws”, said Abhijit Sanyal, Chief Marketing Officer of Business Division East South of ArcelorMittal.

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It is important that we are welcomed as good neighbors that actively engage and listen to local stakeholders, and make a positive contribution to more resilient and thriving communities through both our day-to-day operations and through thoughtful, well-targeted investments.

Active and welcomed member of the community8

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Outcome 8

ArcelorMittal Galati

Sustainability Report2015

2015 key facts

Since 2014, ArcelorMittal has re-focused its efforts for the community welfare in two fields: Health and Education, supporting projects with real and direct impact in the community. Since then, strong partnerships have been opened with Galati County Clinical Emergency Hospital and with Galati School Inspectorate.

Investment in Public Health – 8 projects.

Investment in Public Education – 10 projects.

Investment in public infrastructure – a permanent project for donating slag for the communities

Our New Approach – A Focus on Health and Education

In March 2015, ArcelorMittal Galati commissioned new projects aimed at improving the quality of care and service provided by local medical facilities. The Company announced having donated some modern medical equipment to four wards of St. Andrew Galati Emergency County Hospital: the Emergency Admission Unit – “Red Code”, Anaesthetic and Intensive Care, Plastic and Reconstructive Surgery and Orthopaedics.“This donation further cements our long-term commitment to the local community and demonstrates our ongoing involvement in identifying its needs”, said Bruno Ribo, Chief Executive Officer of ArcelorMittal Galati. The donation included: • a fresh air injector system and air conditioning devices for the Emergency Admission Unit – “Red Code”;• 12 specialised beds with electrical engines, which allow patients to be positioned in a certain manner (for the Anaesthetic and Inten-sive Care ward);• two sets of binocular eyeglass, four tourniquets, two sets of microsurgery kits; • 15 anti-bedsore mattresses which enable faster patient recovery for the Plastic and Reconstructive Surgery. Also, ArcelorMittal Galati donated 10 transporting wheelchairs for the Orthopaedics ward.“The equipment donated by ArcelorMittal Galati is of critical importance, covering essential operational needs within the hospital”, said Dr. Mihaela Debita, the Manager of St. Andrew County Hospital.

Enriching the Public Health Infrastructure

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Outcome 8

Excellence in Education – Awarded by ArcelorMittal Galati

The most outstanding 39 pupils of Galati County received in June 2015 today recognition on the part of the main economic pillars of the local community: ArcelorMittal Galati and Damen Shipyards. The two companies awarded the winners of the national Olympic contests and members of the national batches for the first time together, after eight consecutive years tradition started by our unit. „We joined forces with our business partners and friends DAMEN for the first time in this project and, as they are well-known for launching ships, I am happy to let you know that our Plant has launched three “ships” recently - as a bridge towards education: the Apprenticeship School, the Internship Program and the Scholarships. I truly hope that there are among you, here, some who will become our colleagues in the future”, addressed Bruno Ribo, the CEO of ArcelorMittal Galati, the audience.

“Damen Shipyards Galati is excited to join forces with ArcelorMittal Galati in support of the National Education Olympics, as well as in recognizing the superior achievements of our local students in this year’s competition. I am looking forward to seeing the next CEO of Facebook or Microsoft from among you. Aim high, sky is the limit!”, encouraged Christopher van der Stelt, Managing Director of Damen Galati, the pupils in the audience. The prizes ranged between 1,800 and 4,400 RON for every pupil with remarkable results in any objects of study and 8,000 RON for a basket team ranking 2nd at the national level.

In June 2015, The Company has offered an anaesthetic unit for the “C.F.R.” Hospital and continued to donate a series of necessary equipments for Galati Emergency County Hospital. “The donation for the Surgery Ward at the “C.F.R.” Galati Hospital allowed us to resume - in good conditions - the surgery procedures in our hospital. Thus, we will continue to be able to save the lives of our patients”, said Dr. Gabriela Ionescu, Manager of the Hospital.

Also, Galati Steel Plant delivered 4 new Life Monitors, two Elevators for non-transportable patients and a set of Video equipment for Difficult Intubation, for the Anaesthesia and Intensive Therapy Batch from the Galati Emergency County Hospital. “Now we have 12 new high-end Life Monitors, all donated by ArcelorMittal Galati. The elevators for the non transportable patients are facilitating our work and are improving the care for the patients. The intricate intubation system with video-camera can save lives”, said Dr. Nicoleta Lupu, manager of the Anaesthesia and Intensive Therapy Batch from the Galati Emergency County Hospital.

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41

Outcome 8

ArcelorMittal Galati

Sustainability Report2015

ArcelorMittal Galati Continues to Support Local Technical Education Institutions

In September 2015, ArcelorMittal Galati donated more than 1,000 tools and equipments necessary during the practical sessions of the students from four technical high schools from Galati, Tecuci, Beresti and Pechea.“Some pupils could become our future employees. Thus, these tools will help them during their practical sessions. In the future, we will continue to support and implement projects that focus on education and health”, said Bruno Ribo, Chief Executive Officer of ArcelorMittal Galati.

ArcelorMittal Galati donated to the technical labs of these high schools several types of micrometers, indicating snap gauges, comparison measurers, files, electric measurement devices and others equipments.

In 2014, ArcelorMittal Galati launched an Apprenticeship School for 20 young people from professional and technical schools in Galati County and hired 17 graduates, as workers. Other smaller projects, such as supporting the National Chemistry Olympiad and supporting exceptional pupils, were also implemented.

ArcelorMittal Galati Supports the City Sports Infrastructure

ArcelorMittal Galati has invested in the local sports infrastructure by installing a new modern heating system for Galati Danube Skating Arena.This facility hosted the Fed Cup women tennis match Romania – Spain. The arena fully complied with the temperature standard imposed by the International Tennis Federation. “We are proud and happy that our unit could support this modernization which is for the benefit of the local amateur sportsmen. I would like to encourage all our employees and our children to participate in sports activities”, said Bruno Ribo, Chief Executive Officer of ArcelorMittal Galati.Also, our company decided to invite to this event key customers who encouraged, together with our representatives, the tennis players performing in the field. Among them, Simona Halep, no. 3 in the World Tennis Association ranking no. 3 worldwide, in the picture .

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It is important that we are welcomed as good neighbors that actively engage and listen to local stakeholders, and make a positive contribution to more resilient and thriving communities through both our day-to-day operations and through thoughtful, well-targeted investments.

Pipeline of talented scientists and engineers for tomorrow9

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Outcome 9

ArcelorMittal Galati

Sustainability Report2015

Pipeline of talented scientists and engineers for tomorrow

The skills associated with science, technology, engineering, and mathematics (STEM) are critical for sustainable development. Sectors like construction, automotive and our own industries of steel and mining all require top-quality engineers to develop more sustainable production methods, rethink the assumptions we make about how we use and re-use resources, and develop the technology for clean energy generation.The economy of tomorrow will rely on science, technology and engineering skills, but as the demand for these roles increases, it will get harder and harder to attract the very best.Within the company, our human resources teams work to build a pipeline of talented people for the future.It also extends to partnerships

with academic organizations, and offering internships, sponsorships and scholarships. In Europe, the average age of our employees ranges from 42 to 50. As this generation of European moves towards retirement, we risk losing the skills they have developed.We need to replenish our pool of engineers and technicians before the skills gap has a negative impact on our business. But we know this is a long-term issue, and we have to commit to it for the long term. In other words, we need to start while children are still at school, and inspire them with the idea of a future in science, technology or engineering.

Scholarships for the brightest students and our future employees

ArcelorMittal Galati launched a scholarship contest at the beginning of 2015, dedicated to 3rd and 4th year students from the Faculty of Mechanics. This initiative is part of the Company’s strategy to strengthen the relationship with the educational environment.“We want to encourage excellence among students of Galati, which is why we are glad to be able to develop new projects that support education and health. Our goal is to implement valuable initiatives in the future as well, encouraging high education in Galati and paving the way towards developing experts who will join us as colleagues on the plat-form.” – Mihaela Craciun, Head of Human Resources.The unit offers a monthly scholarship to selected candidates during the entire university year. Moreover, after graduation, they also have the opportunity to be employed on a position that best fits their studies. The students also receive support in developing study projects and will have the chance to participate at the Summer School, organized by the Company during August - September.

15 students received scholarships in 2015.

“We want to continue to extend this type of partnership and to encourage students to develop those abilities required to work in our unit”, added Mihaela Craciun the Director of the Human Resources, ArcelorMittal Galati.

Key Point: About 240 students were involved in our STEM projects throughout 2015.

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Outcome 9

Summer School for students

The fourth batch of interns graduated Summer School in 2015, part of the Internship Program, launched by ArcelorMittal Galati in 2012. The Summer School offered to the 39 students the opportunity to work with the Plant’s specialists, under their guidance and mentorship. The interns worked for two months on real projects, both in production and support departments. The students also participated at training sessions on time management, project management, presentation techniques and job interview. Also, for the first time, the interns visited DAMEN Shipyards Galati, one of the most important clients of ArcelorMittal Galati. At the end of the 2 months period spent in our unit, the 39 interns presented the projects they worked on in the presence of their mentors and the plant’s management.“We need to prepare our future. This is why we have launched Internship – to attract young specialists and the Apprenticeship School – to recruit young workers”, said Bruno Ribo, CEO of ArcelorMittal Galati. “The action is also part of the Group’s focus on science, technology, engineering and mathematics”, said Bruno Ribo, Chief Executive Officer. “Until now, 123 students participated in the four editions of the Summer School and 27 of them were hired”, said Mihaela Craciun, Head of Human Resources. “After the completion of the Summer School, we hired three students. Other six are ArcelorMittal Galati scholars and will join our team when they will finish their studies”.

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Outcome 9

ArcelorMittal Galati

Sustainability Report2015

Blast Furnace Thematic Session for students

Since 2012, our company organizes every year thematic sessions for students, covering various areas in the plant and 2015 made no exception. Over 80 students and their professors joined us for a one day event dedicated to our grandest revamping project – Blast Furnace 5. Specialists from our plant were the speakers for this thematic session - “Blast Furnace 5, a dream come true”- presenting the production processes at the blast furnace and talking about the recent investments that turned this key equipment into the most successful project on our platform. The event was also attended by members of the management, including Bruno Ribo, our CEO, and Philippe Schittly, Head of Primary. They shared with the students the benefits brought by the investment and the importance of engineering skills in complex projects such as this one.„The basis for any project is a dream. All engineers dream forward, imagine and then sketch the project. This is why this session is called “Blast Furnace 5 – a dream come true”. However, an engineer must also have the capacity to convince, to convince others that his project is worth the investment. Only after that, the dream can become reality. Another quality of a good engineer is proactivity; he must always be ready and foresee possible difficulties. Other valuable skills are team work and spirit of innovation, because engineers are not paid to copy, but to bring novelty and progress”, said Philippe Schittly. The students also visited the Blast Furnace, in order to better understand the equipment. Afterwards, they were challenged in a series of competitions meant to test their ability to think strategically and creatively. Over 500 students participated to thematic sessions organized by the company since 2012.

CEO talks at the Faculty of Engineering

Over 100 students participated at an open talk with Bruno Ribo, the CEO of our plant, held right there, in the faculty’s theatre. Bruno Ribo presented the current economic context, our accomplishments and our ambitions for the future, but also the educational projects developed by our unit in the last years, such as the Internship and the Scholarship Programs. Besides, the students got answers to their questions regarding the development of the competencies requested by any employer. The attendees were given the opportunity to ask various questions and the best questions were awarded with a visit in our unit, where the 8 students had the chance to discuss with our CEO, in a small circle.The “Ask the CEO” event is now at its second edition and is part of the company’s strategy to create a strong connection with the educational system, in order to attract and train young specialists.

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We want to be able to show the value of the contribution we make to society, and we need our stakeholders to understand and appreciate it.

Our contribution to society measured, shared and valued10

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Outcome 10

ArcelorMittal Galati

Sustainability Report2015

People

6,338 own employees + 2,600 employees from direct contractor companies. EUR 83 Million paid in salaries.

BusinessTurnover : RON 3.8 Billion. The volume of exports :EUR 508 Million. The volume of goods and services bought: EUR 445 Million.

Taxes and ContributionsIn 2015, the Steel Plant paid EUR 4 Million to the local budgets.Social protection and insurances expenditures: EUR 14 Million. The economic activity of ArcelorMittal repre sents 27% of the Gross Domestic Product of Galati County and 55% of Galati city GDP.

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Editorial TeamBruno Ribo – Country HeadIonel Bors - Country ManagerDorian Dumitrescu – Country CommunicatorOana Vasile -Corporate Responsibility CoordinatorRaluca Lefter – Public Relations SpecialistTheodora Maria Gatin – Public Relations SpecialistLaurentiu Iordache – Photo and Layout