07 08 - usa.arcelormittal.com€¦ · our action 2020 strategic plan. the main investment will be...

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1 Company 1 Community 1 Magazine ArcelorMittal USA March/April 2018 Vol. 11, No. 2 03 Brett: Pursuing sustainability and profitability Jolice Pojeta 06 Steel shines in Detroit Advanced steels were once again in the spotlight at the 2018 NAIAS Mary Beth Holdford 07 This is us Our steel in the U.S. Navy’s newest submarine Jolice Pojeta 08 Extreme Shared Vigilance Indiana Harbor employee donates kidney to co-worker Kelly Nissan 04 Delivery matters Burns Harbor implements new strategy

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Page 1: 07 08 - usa.arcelormittal.com€¦ · our Action 2020 strategic plan. The main investment will be construction of a new hot strip mill. Construction will take approximately three

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03Brett: Pursuing sustainability and profitability

Jolice Pojeta

06Steel shines in DetroitAdvanced steels were once again in the spotlight at the 2018 NAIAS

Mary Beth Holdford

07This is usOur steel in the U.S. Navy’s newest submarine

Jolice Pojeta

08Extreme Shared VigilanceIndiana Harbor employee donates kidney to co-worker

Kelly Nissan

04Delivery mattersBurns Harbor implements new strategy

Page 2: 07 08 - usa.arcelormittal.com€¦ · our Action 2020 strategic plan. The main investment will be construction of a new hot strip mill. Construction will take approximately three

1 | ArcelorMittal USA | March/April 20181 Company 1 Community 1 Magazine2

Our 10 sustainable development outcomes are how we will contribute to making a more sustainable future, from the way we make steel and use resources,

to how we develop new products, and support our people and our communities. 1 Safe, healthy, quality working lives

for our people

2 Products that accelerate more sustainable lifestyles

3 Products that create sustainable infrastructure

4 Efficient use of resources and high recycling rates

5 Trusted user of air, land and water

6 Responsible energy user that helps create a lower carbon future

7 Supply chains that our customers trust 8 Active and welcomed member

of the community

9 Pipeline of talented scientists and engineers for tomorrow

10 Our contribution to society measured, shared and valued

All underpinned by transparent good governance.

Look for “The 10” symbol in 1 Magazine to see how our company works toward a more sustainable future.

Our 10 sustainable development outcomes

Global News>

ArcelorMittal Galati, Romania, has supplied steel for an Antarctic supply research vessel (ASRV), with impressive icebreaking capabilities. The Australian government commissioned the ship to broaden the country’s exploration of the Southern Ocean and Antarctica.

The vessel is under construc-tion at Damen Shipyards in Galati, Romania. Damen is building the ASRV for Serco Defence on behalf of the Australian Department of the Environment and Energy.

Our company supplied heavy plates in grades ranging from AH36 to EH36. The marine steels are built strong, with a low carbon content, ideal for tackling the challenging conditions

of the polar waters. The vessel is designed to

carry out both research and supply functions in Antarctic waters. It will be able to break up nearly six-foot-thick ice at speeds and will supply Australia’s permanent research stations in the area with cargo, equipment and personnel. She will also feature science laboratories and offices.

Smooth sailing with DamenArcelorMittal Europe – Flat Products and Damen Shipyards Group have a longstanding working relationship, reinforced by yet another high-profile project.

One of the main challenges ArcelorMittal successfully met

was to deliver the plates to Damen in the required dimensions – a third to be thin and wide. The thinner plates are used for the deck of the vessel, while the thicker ones are usually used to form the hull. Additionally, the extra wide plates significantly reduce the number of welds required.

ArcelorMittal Galati’s proximity to Damen’s shipyard minimized the chance of transport delays. It also allowed our experts to provide a swift answer to any technical questions the client might have.

Previously, our company supplied steel and collaborated with Damen on its new class of service operation vessels (SOVs).

Symbolic coin for the keel laying ceremony

In August 2017, to recognize the start of the construction, the official keel laying ceremony took place at the shipyard in Galati. Several coins were placed under the keel in accordance with tradition, including a Dutch silver coin from 1642, the year that Dutch explorer Abel Tasman became the first European to reach Tasmania. Tasmania is not only where the offices of the Australian Antarctic Division are located, but the island’s capital, Hobart, will be the vessel’s home port.

Delivery of the ASRV is scheduled for April 2020.

The vessel is currently being constructed at Damen Shipyards in Galati, Romania.

Global News>

New state-of-the-art research vessel built tough with ArcelorMittal steel

ArcelorMittal is investing $1 billion in its Mexican operations, focused on building ArcelorMittal Mexico’s downstream capabilities, sustaining the competitiveness of its mining operations and modernizing its existing asset base. The program is designed to enable ArcelorMittal Mexico to meet the anticipated increased demand requirements from domestic customers, realize in full ArcelorMittal Mexico’s productive capacity of 5.3 million metric tons and significantly enhance the proportion of higher-value added products in its product mix, in line with our Action 2020 strategic plan.

The main investment will be construction of a new hot strip mill. Construction will take approximately three years and, upon completion, will enable ArcelorMittal Mexico to produce c. 2.5 million metric tons of flat rolled steel. Coils from the new hot strip mill will be supplied to domestic, non-auto, general industry customers. Further investments will be made at Lázaro Cárdenas to improve the quality and productivity of the asset base, with additional investment in the group’s Mexican mining operations.

The announcement follows confirmation that the Mexican government has established five special economic zones (SEZ) in southern Mexico to attract infrastructure investment in areas of undeveloped economic potential. Lázaro Cárdenas, home to ArcelorMittal Mexico’s primary steelmaking operations, was named a SEZ.

Commenting, Lakshmi Mittal, Chairman and CEO, ArcelorMittal, said: “To make investment decisions of the scale we have

announced today we need both a favorable investment environ-ment and confidence in long-term domestic growth prospects. I therefore warmly welcome the confirmation of the special economic zones by the Mexican government, which establishes a positive regulatory investment framework aimed at facilitating economic and infrastructure development in the south of the country. Our investment program is aligned with the Mexican government’s objectives, and will enable us to benefit from the anticipated increased demand for higher-added value steel products from domestic Mexican custom-ers. It reinforces our long-standing presence in Mexico, will support the creation of approximately 800 new jobs and play an important role in bolstering economic activity in the region.”

Victor Cairo, CEO, ArcelorMittal Mexico, added, “Construction of the new hot strip mill, alongside the other projects in our investment program which are geared towards enhancing the efficiency and quality of our operations, will enable us to optimize our asset base and increase the proportion of finished steel products for our domestic customers. The investments will help us to meet the demand requirements for higher-added value products we expect to see from domestic customers, which today are heavily dependent on imports, while continuing to support ArcelorMittal’s NAFTA operations by providing high-quality semi-finished steel slabs.”

ArcelorMittal Mexico currently produces approximately four million metric tons of steel a year. Following completion of the investment program, production

would be optimized to approxi-mately 5.3 million metric tons per year, with the proportion of

finished steel for the domestic Mexican market significantly expanded. Flat rolled steel

production would total approxi-mately 2.5 million metric tons, long steel approximately 1.8

million metrics tons with the remaining one million metric tons made up of semi-finished slabs.

ArcelorMittal announces $1 billion investment program in Mexican operations

Enrique Peña Nieto, President of Mexico, and Lakshmi Mittal, CEO and Chairman ArcelorMittal.

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1 | ArcelorMittal USA | March/April 20181 Company 1 Community 1 Magazine3

John Brett

For five of the last six quarters, ArcelorMittal USA (LLC) has posted financial losses. In 2017, we did better than forecast and came close to breaking even for the year. But, as we pursue sustainability and profitability this year, we must take advantage of market conditions, urge Washington to act on imports and take advantage of the benefits of digitalization. Most of all, we need to work together to ensure safe, healthy, quality working lives for our people.

The marketIn 2017, we made many impor-tant strides toward a more sustainable future, but there is still work to be done to become the most cost-effective and productive workforce possible and to match the cost structure of our closest competitors. We want to be in a position to take advantage of the opportunities presented by higher-than-fore-cast pricing. Last year, we missed business plan volume by a half million tons, with more than half of the full year’s miss occurring in Q4, primarily due to a slowdown in demand and, to a lesser extent, operational issues. Quality took a step back from 2016 and that has

to change. We are facing greater challenges from new players and new investments in the USA steel markets and that has resulted in more aggressive customer negotiations. To be successful, we must take advantage of market conditions, improve our operational reliability and create a dependable delivery system, which will be a primary focus this year. I am happy to report that we are on track to achieve our footprint savings goal of $230 million one full year ahead of schedule. But we must continue to look for additional ways to operate more efficiently. We expect steel demand to continue its modest growth this year and are committed to taking advantage of that opportunity.

The political climateImports remain a grave concern, spiking 15 percent last year, and ArcelorMittal USA is putting pressure on Washington to act. We have joined forces with more than two dozen American steel companies to lobby the Trump administration to further restrict steel imports under the rarely used “Section 232” of a 1962 trade law. It allows for trade restrictions to protect national security.

Last April, President Trump ordered an investigation of foreign steel imports under Section 232.

He received the results of that investigation on January 11 and has 90 days to respond. In February, the Commerce Department recommended three possible remedies:• a 24 percent global tariff on steel imports• a tariff of more than 50 percent on steel from a dozen countries, including Brazil, China, India, Korea, Turkey and Vietnam• a quota on steel imports that would allow foreign countries to export only 63 percent of the amount of steel they sent to the United States last year

Keep in mind, there is no way to predict what the president may decide. He is not bound by the recommendations and could do something completely different or do nothing. Either way, any action to further curb imports will take time to institute and so any benefit this action may bring will not be felt immediately.

The newly enacted U.S. tax reform is unlikely to have a direct material impact on our company in the foreseeable future. However, we are hopeful that these tax changes will help spur economic growth and improve market conditions, thereby producing an indirect and positive impact on our USA business. In addition, the president is seeking $1.5 trillion for infrastructure improvements, which should benefit our industry.

Future trendsSteel is well positioned to be the material of choice for the 21st century. But, we still face challenges from aluminum and other competing materials. This emphasizes the importance of innovation.

To remain competitive, we continue to invest in research and development, including our portfolio of advanced and ultra high-strength steels for automo-tive. And we are seeing results. For example, we are supplying more advanced high-strength steel for more automotive products, including the Dodge Ram, Honda Odyssey, Chrysler Pacifica and Chevy Bolt.

The move toward electrifica-tion is also well underway and

nearly all automotive manufactur-ers are introducing electric vehicles into their product lines. Steel is a superior product for these vehicles. Our electrical steel products reduce electricity use at all levels of performance and provide greater strength, less heat generation and improved magnetic properties. This results in improved engine performance and, ultimately, an increased driving range.

We are also exploring the potential of Industry 4.0 (the “Internet of Things”) digitalization and data analytics. We already see examples of this trend toward automation and data exchange in manufacturing. Our North America IT team has been participating in cross-functional workshops, looking for value-creating opportunities using “big data,” which can reveal significant patterns, trends and associations. AM/NS Calvert has developed a pilot program for autonomous cranes. Burns Harbor is one of several facilities using drone technology. I/N Tek and I/N Kote uses automated guided vehicles

(AGVs). These are just a few examples of how we are working to optimize our resources. Our long-term success in this new digital era requires a clear vision and strategy, a strong partnership between IT and business units, and collaboration across groups.

Our peopleThe engagement and motivation of all employees are key enablers of our success. We are currently in the process of analyzing your responses to ArcelorMittal’s climate survey. Your local management team and human resources representatives will be meeting with you to go over the survey and get feedback. We will be studying the results of those conversations to do what we can to address your concerns.

Health and safetyI cannot emphasize enough that health and safety will always be our top priorities. For USA flat carbon, we achieved our LTI target in 2017. However, we cannot forget we had tragic events in the United States that

resulted in three fatalities: one at Indiana Harbor, one at Monessen and one at Riverdale. Please do everything you can to ensure your own safety and look out for your co-workers. I urge you to treat each co-worker as you would a member of your own family. Other large steel companies have achieved zero fatalities. I’m confident that we can too. To that end, we have adopted new safety targets for 2018. For flat carbon, the new target is 0.85 and for Steelton, it’s 1.18.

On April 26, we will observe Workers Memorial/Health and Safety Day. On that day, and every other day, we must re-commit to practicing Shared Vigilance to protect each other. Together, we can achieve a future where ArcelorMittal USA is an industry leader in ensuring the health and safety of its workforce.

We want all of you to feel safe, respected and valued – and to be engaged and motivated. Working together, I know ArcelorMittal USA can achieve its goals for 2018, and beyond.

John Brett, CEO, ArcelorMittal USA

Pursuing sustainability and profitability

Greg Ludkovsky, vice president, Global R&D

Greg Ludkovsky

While sales of battery electric vehicles (BEV) are still far behind conventional internal combustion engine (ICE) vehicles, BEV technology and sales continue to improve at a rapid pace. Globally, BEV sales exceeded one million units in 2017, compared to just 773,600 in 2016. Global BEV sales are expected to reach two million units in 2018 and account for 25 percent of all car sales by 2025. While vehicle makeup will look very different in 2025 compared to today, one constant that will remain is the critical role that steel plays in vehicle design.

First, to understand where the future of mobility is heading, it’s important to understand what is driving the change. Both North America and the European Union have rolled out stringent emissions targets that aim to reduce CO2 emissions while tightening testing requirements. Furthermore, local governments around the world are looking to implement vehicle design and driving restrictions that will help reduce smog and particulate levels and, thereby, improve public health. Such factors are quickly moving us toward an electrified world for transportation.

The most obvious reason for the shift is that BEVs emit no carbon or nitrogen oxides during the drive phase, reducing overall fleet emissions significantly. But, there are many other benefits for consumers:• BEVs have nearly 90 percent less rotating parts than ICE

vehicles, meaning less wear and tear on the car and a lifespan exceeding 600,000 miles. • Regular maintenance of BEVs is significantly lower as they require no oil changes and other tune-ups more common in ICE vehicles.• Operating costs per mile are significantly lower in BEVs, as compared to ICE vehicles.

While the benefits are significant, the financial cost and driving range of BEVs are key in determining how quickly sales will take off. The innovation taking place to improve the range, cost and charging time of batteries has accelerated. In the last four months alone, we’ve seen key announcements from major automakers on their expectation for this field. Volkswagen announced it will spend $40 billion on electrification over the next five years. Meanwhile, General Motors will launch at least 20 new electric vehicles by 2023 and Ford will invest $4.5 billion and introduce 13 electrified models in the next five years.

One of the limitations of BEVs is the weight of the battery and the extra reinforcement needed to protect the battery during a crash. A BEV requires greater energy absorption to handle the larger kinetic energies of a heavier vehicle and a stronger roof structure to manage greater roof crush loads.

ArcelorMittal’s advanced steel grades – including our patented press hardenable steel Usibor® 2000, MartINsite® 1700, and MartINsite® 2000 – all offer greater strength per unit density than aluminum. And our Fortiform® cold stamping grades

offer greater energy absorption per unit density than aluminum. In fact, steel’s unmatched strength enhances intrusion resistance, while the thinner gauge steel allows for more space in the battery protection system to accommodate larger batteries, thereby increasing driving range.

Aside from protection and performance, another focus for automakers is controlling vehicle cost. Increasing battery capacity by just one kilowatt per hour typically costs around $120. Advanced high-strength steels (AHSS) offer the most cost-effective solution to improve battery range without adding more weight. In fact, steel is the most affordable material over all competing materials.

Automakers are also recognizing the benefits of steel, with major applications of steel seen in today’s BEVs. As just one example, the body-in-white of the Chevrolet Bolt is composed of 86 percent steel, including 44 percent AHSS. Like Chevrolet, OEMs are using the advanced lightweighting potential of steel to achieve their range goals, while keeping costs low.

One final yet critical, benefit that steel offers can be found in a vehicle’s lifecycle – production phase, drive phase and disposal. In North America, regulations only consider tailpipe emissions generated during the drive phase of a vehicle. However, an ICE vehicle’s production phase comprises nearly 20 percent of total greenhouse gas (GHG) emissions and that figure more than doubles to 47 percent for BEVs. Peer-reviewed and publicly

available research shows that aluminum production requires seven times more energy than steel and emits four to five times more GHGs. If we don’t consider production phase emissions when evaluating the environmen-tal impact of a vehicle, we may choose a lightweighting material that emits more GHGs during production than it saves during the vehicle’s drive phase. This will result in a huge and irreversible environmental mistake.

Steel offers the optimal balance of strength, performance and mass reduction with the least impact on the environment. Steel is the material of choice for today’s vehicles and will remain the material of choice for vehicles of tomorrow.

Greg Ludkovsky is vice president of global R&D for ArcelorMittal.

Reinforcing the role of steelRaw Material Blog>

“ArcelorMittal USA’s profitability is based on Earnings Before Interest and Taxes (EBIT) and communicated through the hourly profit sharing letter. EBIT is a metric within ArcelorMittal’s audited financials that was identified and agreed upon in the Basic Labor Agreement with the United Steelworkers. Based on EBIT, ArcelorMittal’s USA business has not been profitable in five of the last six quarters and has not made a profit sharing payout since Q3 2016. Our Q4 2017 EBIT was a loss of approximately $38.9 million. Therefore, our USA performance did not trigger a profit sharing payout for hourly or salaried employees.

“I understand this is hard to digest, especially when our parent company announces a positive outcome for the global business. Recent corporate earnings announcements reflect a much improved performance for the global business as a whole, but it does not reflect the challenges we are working to overcome here in the USA. These challenges include increased imports, despite the recent trade tariffs that have been put in place, as well as new domestic competition that reflects our dynamic and evolving marketplace, and various production and logistical issues.

“In order to understand where we are going, we must not lose sight of where we’ve been. Since the later part of 2008, ArcelorMittal has weathered the most challenging

economic times to face our industry in years. Our team worked diligently to ensure our business is resilient, agile, lean and positioned for success in the future. Starting in 2016, ArcelorMittal USA has under-gone significant transformation under the Action 2020 framework, setting our business on course for a stronger future, regardless of the cyclicality of our industry. The work completed thus far has shown signs of positive impact and realized financial improvement. That said, we haven’t yet witnessed the fruits of our labor.

“Like many of our colleagues, our leadership team isn’t satisfied by our current level of profitability, but we are encouraged by the forward progress we’ve seen in recent months. ArcelorMittal USA is on track to achieve our Action 2020 savings goal of $230 million one full year ahead of schedule. But frankly, we started this process from a significant deficit. Results show that we are close to achieving profitability, and we will continue to look for additional ways to achieve more cost-effective operations. In order to maintain this momen-tum, we must capitalize on a strong market and pricing environment, improve opera-tional reliability and enhance our delivery process. Initiatives are in place to accomplish all three. Our journey continues, and I look forward to achieving both sustainability and profitability for our company and our deserving employees.”

An explanation of ArcelorMittal USA’s profit-sharing metrics

2017 Earnings>

In announcing the 2017 financial results for ArcelorMittal, Lakshmi Mittal, chairman and CEO, stated, “Overall, I am very satisfied with our performance. We have made important progress in multiple areas and start 2018 in a strong financial position, supported by healthy demand in our core markets,

with good momentum in the execution of our strategic plan Action 2020.”

ArcelorMittal releases 2017 global results

The finanical results and Mr. Mittal’s video are available on ArcelorMittal.com.

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1 | ArcelorMittal USA | March/April 20181 Company 1 Community 1 Magazine4

Jolice Pojeta

The most effective way to ensure the sustainability of ArcelorMittal is to provide timely delivery of high-quality products to our customers.

ArcelorMittal USA has embarked on a new initiative to improve on-time delivery (OTD) performance to our valued customers.

Over the past year, ArcelorMittal Burns Harbor has become one of several USA facilities to develop teams in both the light flat rolled (LFR) and plate divisions to identify and begin implementing projects in support of the ArcelorMittal USA delivery initiative.

The most noticeable changes with the new delivery initiative will be the perspective of the performance metric. The old metric tracked the ability to get material ready at the plant by a prescribed date. Instead, the new metrics will track perfor-mance through the eyes of our customers.

“For those customers desiring measurement to mean delivered – so be it,” said John Mengel, vice president and general manager, ArcelorMittal Burns Harbor. “For those

customers seeking time of shipment, also fine, and finally for those customers whose expecta-tion is ready on our floor, we will measure that way for them. The point is, perception is reality and for our performance to be relevant to each customer, the measurement must be as they perceive necessary to match their business model. Delinquent orders will be tracked and measured (as a percentage of order entry trend) and prioritized to minimize disruptions in delivery. This is delivery performance measured as our customers see us.”

According to Chad McKeever, process manager, delivery improvement, ArcelorMittal Burns Harbor, delivering a quality product on-time is essential in today’s competitive landscape and will help to further secure and grow our business as the market changes.

“This new measurement is influenced beyond the manufac-turing plant and will measure the efficiency of both the logistics and outside processing suppliers supporting our customer base,” says McKeever. “This will allow us to understand how we are performing through our custom-ers’ eyes. We now understand what our customers expect, and if we consistently deliver to their expectations, we position

ourselves to be their preferred supplier.”

On the plate side, Tony Trial, plate delivery facilitator, says many departments are studying and implementing the improved delivery effort. Changes to plate processes of planning, scheduling, production, met testing, loading and shipping have been critical to the process.

“Each element of change has been critical to our progress. But the project that will offer the most significant step change to Burns Harbor plate is the installation of plate edge marking systems at the 110" and 160" plate mills. The new systems will provide edge identification on all thicknesses of plate. This is an exciting advancement that offers multiple improvements which will ultimately result in improved timeliness and accuracy of deliveries.”

Within Burns Harbor, several teams have been established for the enhancement of OTD performance. “John Mengel and Jean Louis Muller, senior division manager, hot rolling and finishing, have fully supported this collaboration, helping to focus the delivery initiative efforts of the IT, quality, operations, and planning and scheduling departments across the facility,” added McKeever.

Projects to support the Burns Harbor LFR delivery effort include:– order dressing - reducing the time to metallurgically and dimensionally dress an order to make it available for caster scheduling– caster scheduling – organizing grades for melting inside the tundish and prioritizing by due date– slab management – optimizing inventory management software– slab sorting – sorting slabs by next downstream step, directly off the caster conveyor, improving storage and hauling efficiency– slab hauling – computer technology inside vehicles to provide visibility of inventory in storage yard, increasing hauling efficiency– hot mill scheduling – rolling every schedule every week, prioritizing slabs to be rolled by due date

McKeever said improved results are already apparent in some areas, as evidenced by Burns Harbor’s record delivery performance in 2017 as currently measured. Trial noted that for plate, improvement will begin in early 2018 with the most significant change in Q4,

following the installation of the plate edge marking systems at each plate mill.

“Burns Harbor plate recognizes the importance of meeting or exceeding customer expectations as stated in the Burns Harbor quality policy. Our customers expect and deserve a quality product delivered on-time, and a best-in-class internal vision is key to ensuring our share of the competitive plate market,” added Trial.

“Burns Harbor’s high-quality products, combined with the delivery performance expected by our customer base, will provide security that will sustain our workforce and community for years to come,” said McKeever.

[email protected]

1 Magazine will be reporting on delivery initiatives at other facilites in the coming months.

New strategy designed to improve delivery performance

Kelly Nissan

What does it take to make significant improvements in quality metrics? If you ask Indiana Harbor’s Kevin Neale, he’ll credit the diligence and hard work of the employees for the improvements

and quality records set at his plant in 2017.

“We have more exposed product in our mix than ever before and it has the most demanding surface quality requirements. However, we still achieved a decrease in sliver rejections. I have to commend the steelmakers and hot mill folks

for this. What a great effort on the part of these employees,” said Neale, division manager, quality.

So how did they do it?“We’ve eliminated many of the causes but, for the most part, we’ve reduced the size and frequency of excursions,” Neale explained. “And that’s due to the

employees on the line - how they react when they have a problem. Rejections have gone down without any significant increase in claims and that’s not easy to do.”

The focus for 2017 was improving how employees react when problems occur. Improvements were made at the hot mill on run out table scratches, at the tandem mill on water carryover and at the coating line on coating defects.

Some new business in 2017 for Indiana Harbor was supplying 20,000 tons per month of substrate to Columbus Coatings for the GA line. “We’ve been below target in both areas of measurement related to Columbus: reject rate Indiana Harbor substrate at Columbus, we were below target. And reject rate Columbus substrate at Indiana Harbor, we were also below target. These are significant achievements,” said Neale.

Also, both No. 5 pickle and No. 80 tandem set rejection rate records in 2017. It’s fair to say that Indiana Harbor had an excellent year. And while the quality plan for 2018 requires an additional 5 percent in improvements over 2017, Neale expresses complete confidence in the Indiana Harbor team.

“I’m proud of our employees. If everyone keeps pushing forward, keeps eliminating source causes and excursions, we can certainly achieve more improve-ment to reach our 2018 targets.”

[email protected]

Quality improvement credit goes to Indiana Harbor employees

Quality>

Quality engineers conduct a sample meeting to review and disposition product quality against customer standards. Pictured from left, Sophie Ydstie, Joseph Liszka, Lindsey Emge and Libby Frebes.

Oven wall with concave bow. Repaired wall.

Burns Harbor plates are loaded on a flatbed truck and delivered to customers.

Hot rolled coils in storage warehouse awaiting shipment.

Coke plant develops innovative oven repair

Innovation>

Nagendra Singh

The Burns Harbor coke plant team has developed an innovative method of repairing the battery’s coke oven walls. This method has prolonged the service life of the battery by five years, strength-ened the environmental perfor-mance of the battery and has helped defer about $20 million of capital expenditure.

No.1 coke battery at Burns Harbor is a middle-aged battery, at 33 years old. Early in its life, a large capital campaign funded repair work to its walls. During this end-flue repair project, workers demolished the ends of all the oven walls and replaced them with new refractory bricks. At that time, in 1994, it was estimated that the oven would need similar repairs in about 15 years.

However, the consistent operation and preventative maintenance by the coke plant team has already extended the life of the repairs beyond 23 years.

In 2014, 20 years after those repairs, it was time to assess the condition of the oven walls on No.1 battery. The coke plant team concluded that some of the ovens repaired in 1994 needed attention. Despite the excellent performance of the battery since the repairs, age finally caught up with it. If left unaddressed, these issues would lead to stickers and stack opacity issues, eventually forcing the ovens to be banked and a permanent loss of production capacity.

The traditional response to such a situation would be to initiate another campaign of

end-flue repairs. These repairs would cost about $20 million, not including the production lost during the repair campaign.

Instead, the coke plant team delved deeper into the matter and discovered that all the damaged ovens suffered from the same problem – the formation of concave bows on the walls.

The coke plant adapted the use of ceramic welding technol-ogy to overcome this issue. Normally, this method is used to fill small cracks or open joints, no larger than an inch, in the refractory bricks to prevent flue leakage that causes stack emission issues. But the team used this technology to fill in the concave areas on the wall and align the new welded wall face with the straight wall face.

This method has proved to be extremely successful in improving the condition of the ovens in the medium run. A case in point is oven 154. Over time, oven 154 had become prone to be a sticker oven, as indicated by high pushing forces. However, after the repair, the pushing forces have dropped significantly to safe levels. No flue leakages have been observed that can contrib-ute to high stack emissions.

Using this technique on several other ovens has resulted in the deferment of expensive capital repairs from 2014 to 2019.

Nagendra Singh is a process manager, operating technology, coke plant, ArcelorMittal Burns Harbor.

7. Supply chains that our customers trust

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1 | ArcelorMittal USA | March/April 20181 Company 1 Community 1 Magazine5

Using drones for critical energy-related detectionsBecause it’s an evolving technology, some people may not realize the benefits of using drones.

Cleveland’s gas energy system incorporates miles of steel pipes in various lengths and sizes throughout the plant. Drones are used to identify any structural issues within the gas system.

Drone image within Cleveland’s power house, where a gas leak was reported and identified, saving a special team from suiting up to inspect the area.

Infrared images of the Burns Harbor boiler stacks taken with the drone.

Why is product quality important for ArcelorMittal? This question and many others were answered by experts at the “Metallurgy for Professionals: Defectology” course held at Global Research and Development, East Chicago Center. Attendees, pictured here, returned to their home plants, applied what they learned and are seeing many positive results.

Jolice Pojeta

Over the past few years, the use of drones is becoming increasingly popular in industry. Drones allow companies to reduce costs by decreasing time requirements while improving the quality and accuracy of the information gathered. They also make many jobs safer, by reducing risks.

Two ArcelorMittal USA facilities, Burns Harbor and Cleveland, are utilizing cameras mounted on drones to inspect energy-related infrastructures.

“Energy efficiency, conserva-tion and reliability of energy assets continue to be a major focus and target for continuous improvement at ArcelorMittal,” said Gabriel Monroy, manager, structural maintenance, MEU, ArcelorMittal Burns Harbor. “Drone technology helps us deploy inspection personnel in a much safer manner with

greater ease and at a substantial reduction in cost when compared with traditional inspection methods.”

Monroy noted that Burns Harbor has been using drone technology for three years. The facility invested in a drone with the capability of supporting an infrared (thermal imaging) camera, as well as a platform for an advanced 4k quality optical/digital camera. The team responsible for the operation of the drones relies on specialists of a particular area within the Burns Harbor facility to request the investiga-tion for a certain asset and to provide relevant parameters related to its efficient operation.

“In particular, the team is monitoring various energy-related assets, including electrical and natural gas distribution network structures, as well as other gas-related assets, such as blast furnaces, stacks, louvers, generators, etc.,” noted Monroy.

“The team had identified leaks and potential sources of issues, most notably, the detection of a blast furnace gas leak that could be potentially hazardous.”

The team uncovered other risks, too, including a compromised liner of acid storage tanks, compromised refractory material in stacks and other gas networks leaks.

At Cleveland, a drone is being used to inspect roofs, power lines and gas lines.

“We also have a portable weather station to monitor local atmospheric conditions at the flight location,” said Henry Cuevas, senior project engineer, high energy and reliability, MEU, ArcelorMittal Cleveland.

Cleveland’s power system has a vast grid covering 930 acres. It supplies power to each building. The electrical system includes both uninsulated wires and insulated cables. With their drone, Cleveland can verify the mechanical condition of the structures that sustain and protect the electrical power system.

Steel pipes transport natural gas and steam in the facility’s energy system. Cuevas said that energy might be wasted if the physical characteristics, such as pressure or temperature, do not reach the final user as expected. That can affect efficiency and increase the operational cost.

Both Monroy and Cuevas agree that the benefits of using drones are invaluable. And while cost savings are important, there is one more critical and valuable benefit.

“The most valuable benefit

of drone use is the human safety aspect – keeping employees from being exposed to a potentially dangerous situation

like a fall from a roof or exposure to gases,” noted Cuevas. “When you think about it in these terms, we cannot overstate

the enormous benefits of drones used in our facilities.”

[email protected]

Kelly Nissan

Quality engineers on a key automotive account are applying what they learned in “Metallurgy:

Defectology” training held at Global Research and Development. And it’s paying off in customer satisfaction.

“We were having splitting issues on an auto part. We observed the mill certified

properties and could not find a root cause or evident problem. It was a mystery,” said Daniel Frazier, manager, customer technical service, quality assurance, ArcelorMittal USA.

“I attended the training along

with my colleague on the account, Emanuel Chavez. We very quickly learned that the reason for a problem is not always obvious or black and white. We had to look further. In this case, at the microstructure of the steel.”

Items covered in the course include theoretical basics, defect types and origin; product/quality design; diagnosis and root cause analysis; locking in knowledge and review of case studies.

“Before the training, we didn’t know we could send samples to Francis Chen’s laboratory for analysis,” said Frazier. “They analyzed samples and determined a cause. Chen’s team came through and we found a resolution to this complicated issue.”

Steel Academy Courses are offered through ArcelorMittal University. In addition to defectology, courses in cokemak-ing, blast furnace, steelmaking, hot rolling, cold rolling, formability and coating are offered, just to name a few. Employees travel to the East Chicago campus from all over the U.S. seeking under-standing and solutions from experts at Global Research and Development.

“They go back to their plants with improved fundamental knowledge about their work, valuable information about resources at their disposal and solutions to deploy,” said Bernard Chukwulebe, group manager, steelmaking and refractories, and training course coordinator, ArcelorMittal Global Research and Development. “We offer training courses because we want to provide the best available knowledge in all the areas and to share best practices from plants we’ve traveled to across the world. Our goal is to help the operators be successful in their tasks so their plants can be successful, thereby helping the company overall.”

[email protected]

ArcelorMittal University course provides answers to customer challenge through ‘defectology’ training

Our Customers>

7. Supply chains that our customers trust

Senior operating technician, Terry Dziepak, checks the pressure set points on the air compressor PLC screen at 4AC station. Indiana Harbor switched some diesel air compressors to electric. It saves the plant money and reduces carbon emissions.

Making a switch for savingsBest Practice>

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1 | ArcelorMittal USA | March/April 20181 Company 1 Community 1 Magazine6

Chrysler Pacifica body-in-white

Audi A8

VW e-Golf

Dodge Ram

Steel shines in DetroitThe North American International Auto Show in Detroit’s Cobo Center put steel in the spotlight.Mary Beth Holdford

Steel is no stranger to the Detroit auto show. This year, the circuit debuted more than 60 steel-intensive vehicles and the 2018 car, truck and utility vehicles of the year all featured advanced steels – the Honda Accord, Lincoln Navigator, and Volvo XC 90, respectively.

“With so many new steel-intensive vehicle debuts across key vehicle segments, it truly reinforces how advanced high-strength steel (AHSS) is driving innovation across the industry and helping automakers reach their lightweighting targets,” said Jody Hall, vice president of the automotive market for the Steel Market Development Institute (SMDI). “There are more than 200 grades of innovative AHSS available to automakers today...allowing engineers to apply the right grade in the right location for exceptional occupant protection, durability and crash energy management.”

The spotlight was also shining on the all-new steel-intensive 2019 Ram 1500,

which is a contender for the 2019 truck of the year title.

“Everything we’ve done has a single purpose… for starters, we’ve made this new Ram pick-up even stronger, with a focus on durability. We’ve used 54 percent high-strength steel in the bed and the cab, and 98 percent high-strength steel in the frame. That results in a Ram truck that is stronger than ever yet still 225 pounds lighter,” said Mike Manley, head of the Ram Brand during the auto show unveiling.

An interactive steel display – designed by SMDI in collaboration with FCA and SMDI members, including ArcelorMittal – is featured in the Ram exhibit. The display panel features four removable panels depicting four different grades – conventional, high-strength, advanced high-strength and ultra high-strength steels.

“This display showcases how steel truly is a ‘mixed material’ and provides engineers with the right grade for the right application. The all-new Ram is a great demonstration of how steel is driving automotive innovation with the truck’s capability, efficiency, durability and weight reduction,” added Hall.

In addition to dozens of other steel-intensive vehicles on display in Detroit, there was another observed trend that bodes well for steel.

“One of the big themes of this year’s show is autonomy,” said Dr. Blake Zuidema, director of automotive product

applications, ArcelorMittal. “All major manufacturers are talking about their plans for autonomous vehicles, and along with autonomy comes electrification. Most manufacturers have now made the connection that autonomous vehicles are most likely going to be electric. And both promise to be good for steel as steel is low cost and lightweight.”

This same message about the relevance of steel is explored further in the blog,

“Future mobility trends reinforce the role of steel,” published by Dr. Greg Ludkovsky, head of global R&D for ArcelorMittal as well as a recent Bloomberg article, “A steelmaker’s plan to win back the car of the future.” Dr. Zuidema reinforced those points in his keynote address at the SMDI press conference held on January 16 during the Detroit auto show’s media days.

“If you leave today with one key takeaway, I want it to be this – steel is and always will be the complete package to help automakers achieve the fuel efficiency targets set before them. It’s the most affordable solution for our customers and the consumer. And, it’s the best choice for the environment,” said Zuidema.

Champions of steel honoredDuring auto show media days, SMDI and partners announced the annual Community Hero and Industry Innovator awards.

The Community Hero award recognizes those whose work using steel impacts the quality of life of the community. The award was presented to Dr. Donald Malen of the University of Michigan. Malen teaches graduate level courses in automobile body structure and product design. He works closely with the steel industry and supported the develop-ment of the software for WorldAutoSteel to assist in material decision making.

The Industry Innovator Award was presented to Jack Dolan, architecture line executive for large vehicles at FCA US LLC, for his efforts to identify and implement innovative AHSS solutions on current and future FCA vehicles. Dolan’s dedication to steel innovation helped reach the efficiency goals for the award-winning Chrysler Pacifica.

“(SMDI) member companies have opened up the plants, enabling a new generation of our engineers to see steelmaking firsthand. When we do that, it opens their imagination to what steel can accomplish,” said Dolan. “There’s no better example than the brand-new Ram 1500 steel intensive truck you’ll see on the floor. It speaks to what we can do together,” said Dolan, son of a steelmaker.

“I’m proud to be part of continuing that tradition today…making sure that steel matters in our products, and laying the groundwork to ensure that it matters even more in the future,” he said.

marybeth.holdford@ arcelormittal.com

Subaru Ascent

Ford Fusion

Dodge Ram chassis

Chevrolet

Honda Accord

Cadillac

This is us

Ford F-150

...with a fully boxed frame made from up to 78 percent high-strength steel...

Greg Ludkovky’s Raw Material blog can be read on our external website: usa.arcelormittal.com.

You may access the Bloomberg article here.

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Jolice Pojeta

ArcelorMittal and the state of Indiana are anxiously awaiting the upcoming commissioning of the USS Indiana (SSN 789). The ship is the latest in the Virginia-class fast attack submarines.

The Indiana was christened on April 29, 2017. Now, the submarine is continuing with sea trials and it is scheduled to be handed over to the U.S. Navy in June.

ArcelorMittal USA’s Coatesville and Conshohocken plate facilities supply both carbon and Navy armor grades of plate to both U.S. companies capable of manufacturing nuclear-powered submarines: General Dynamics’ Electric Boat Division in Groton, Connecticut, and Huntington Ingalls Industries’ Newport News Shipbuilding in Virginia.

“Due to the sophistication associated with these vessels, the government approved the conditions by which these two companies could develop a teaming arrangement to build submarines together, utilizing a modular production process,” said Matt Habenicht, plate sales manager, ArcelorMittal USA. “This ensures there are two manufac-turers of these highly technical and advanced Navy warfare vessels.”

The Virginia-class submarine is a nuclear-powered platform that can carry missiles and torpedoes, gather intelligence and deploy special forces – including Navy SEALS. Each boat costs approximately $2.68 billion to build. While pricey, it is less expensive than the Seawolf-class subs that preceded the Virginia-class. Each of those cost more than $3 billion.

The submarine will be the third U.S. Navy ship to be christened with the name Indiana. The first Indiana (BB-1), the lead ship of her class of battleship, served in the North Atlantic. Later, she participated in the blockade of Santiago de Cuba during the Spanish-American War. The second Indiana (BB-58) was a South Dakota-class battleship that earned nine battle stars for her service in the Pacific Theater in World War II. BB-58 fought in the Battle of the Philippine Sea and participated in the invasions of Tarawa, Kwajalein and Okinawa, and bombarded Saipan, the Palau Islands, the Philippines and Iwo Jima.

The USS Indiana will be 7,800 tons and 377 feet in length, have a beam of 34 feet and operate at more than 25 knots (29 mph) submerged. She is designed with a reactor plant that will not require refueling during the planned life of the ship. That will reduce lifecycle costs while increasing underway time.

With an estimated crew of 135, the USS Indiana will have the capability to attack targets ashore with highly accurate Tomahawk cruise missiles and conduct covert, long-term surveillance of land areas, waters near shorelines or other sea-based forces. Other missions include anti-submarine and anti-ship warfare, mine delivery and minefield mapping. It is also designed for special forces delivery and support.

Habenicht said there are four submarine classes in the current fleet: the Los Angeles, Sea Wolf, Ohio and Virginia. The Ohio-class submarines carry more than one-third of our nation’s nuclear ballistic missile capabilities. They are the largest submarines in the fleet, averaging a little more than

two football fields in length. “Design and production are

underway for a replacement of the Ohio-class platform, to be named the Columbia-class submarine,” added Habenicht. “Plans are for 12 of them to be built, and they are expected to be even larger than the Ohio-class subs they replace.”

The Virginia-class submarine recently underwent a major change, adding an 84-foot section to the middle of the new vessels. Habenicht said the unit, called a Virginia Payload Module (VPM), provides additional space for missiles, underwater vehicles or drones, as well as capabilities to deploy special operation forces, such as Navy SEALS.

These ship manufacturers are very specific about the quality of materials used to build these complex vessels. Habenicht mentioned that a vice president of quality and radiological controls from General Dynamics Electric Boat recently visited the Coatesville facility and expressed the company’s critical need for all their suppliers to adhere to their strict quality standards.

“Suppliers need to focus on the specifications, inspections and manufacturing instructions because peoples’ lives depend on them. In other words, quality is not an option – it’s an imperative,” said the General Dynamics executive.

“The submarine fleet provides stealth capabilities and serves as a powerful deterrent to aggressive acts against the U.S. and our allies around the globe. The safety of these vessels is critical to the survival of the dedicated crews who tirelessly protect our freedoms,” added Habenicht. “Our extensive history and relationship with the armed forces provide us with a

challenging yet rewarding position as the premier plate supplier to our nation’s Navy, for whom many of our employees either have or know someone who has served. This critical market remains one area of our nation’s manufacturing

base which is still made, melted and built in the USA.”

[email protected]

ArcelorMittal provides quality plate for Navy’s latest high-tech submarineArcelorMittal has a long history as a supplier for the U.S. Navy. As a company, we are proud to provide the U.S. armed forces with high-quality steel to protect our troops.

The Virginia-class submarine Indiana (SSN 789) before being launched into Virginia’s James River and moved to Newport News Shipbuilding’s submarine pier for final outfitting, testing and crew certification.

This is us

Pictured with a miniature replica of the USS Indiana during a recent stop at ArcelorMittal Burns Harbor (from left) were: Andrew Smith, senior engineer, quality assurance, Burns Harbor; Lt. John McCauley, program operations officer and Cmdr. Joseph Scott, commanding officer, both from the Navy Recruiting District Chicago, Great Lakes, Illinois; and John Mengel, vice president and general manager, Burns Harbor.

According to the U.S. Army Corps of Engineers, “It took several 300+ horsepower pumps 16 hours and, by Saturday morning, the Poe Lock was nearly empty. A worker was kind enough to stop for a moment and pose for this photo to help illustrate the impressive size of the empty lock.” Photo courtesy U.S. Army Corps of Engineers.

Our Partnerships>

Jolice Pojeta

On a chilly November afternoon, U.S. Navy representatives for the USS Indiana (SSN 789) submarine made a stop at ArcelorMittal Burns Harbor. The visit also included a downscaled replica of the submarine that was on display for a few hours at the facility.

“It was a great pleasure to have the Navy representatives here to show them our facilities and explain the plate process,” said John Mengel, vice president and general manager. “While the plate for the USS Indiana was manufactured at our Eastern Plate locations, I think

they enjoyed seeing the similar plate production process. During this very cordial tour, we wanted to make certain they knew ArcelorMittal USA Plate is a major player in supplying the needs of our armed forces used in shipbuild-ing, submarines and combat vehicles. Every ArcelorMittal USA employee should be very proud to supply our country’s defense needs and gratified that their efforts are leaving generational legacies.”

Ray Shearer, chairman of the USS Indiana Commissioning committee, noted there are more than one hundred Indiana businesses manufacturing components for the submarines in the Navy fleet.

“Namesake visits are very important to the Navy and the commissioning effort of the USS Indiana. It also helps raise awareness of the ship and christening,” added Shearer. “It’s also very important for the crew of USS Indiana to learn more about their namesake and the people of Indiana they represent – especially the skilled employees who help make various components for submarines and ships such as those at ArcelorMittal. The sailors who visited ArcelorMittal were very impressed with the many complexities that go into making the steel that helps protect them at sea.”

[email protected]

Burns Harbor welcomes U.S. Navy and USS Indiana mini-submarine replica

10. Our contribution to society measured, shared and valued

A glimpse of Soo Locks, emptied for winter maintenance

Supply Chains>

Summer Paris

In 2017, ArcelorMittal USA and its shipping partners moved more than 18.5 million tons of iron ore and sinter material on the Great Lakes. That adds up to 36 percent of the total iron ore tonnage shipped on the lakes last year. All of this critical cargo moves through the Soo Locks in Sault Ste. Marie, Michigan. It’s a fascinating system that enables freighters and other boats to traverse the 21-foot drop between Lake Superior and Lake Huron.

During the winter months, the Great Lakes shipping season closes and the U.S. Army Corps of Engineers, Detroit District, performs critical maintenance on the locks. This requires the remarkable job of draining – or dewatering – the locks. The process takes 16 hours and requires several 300+

horsepower pumps!The Poe Lock is the only lock

capable of handling the largest lake freighters that transport iron ore from Minnesota and Michigan to steel mills along the Great Lakes.

Historically, a new lock is constructed every 19 years, but the Poe Lock is nearly 47 years old. ArcelorMittal and other maritime stakeholders have been voicing concern for years about the old Poe Lock. Congress long ago authorized building a second large lock, but never funded the expensive project. Until it is funded, winter maintenance to keep the Soo Locks in good working order is a priority for the Army Corps.

On January 31, Tom Dower, ArcelorMittal’s senior director of government affairs, joined Lt. Col. Sugrue and Matthew McKenna, Director of the Great Lakes Washington Program, Northeast-Midwest Institute to brief congressional offices and

stakeholders on the importance of the locks to the domestic steel industry.

Dower’s message to lawmakers: “The Soo Locks – including a new Poe-sized lock – are indispensable for maintaining U.S. and North American manufac-turing in the 21st century.”

[email protected]

7. Supply chains that our customers trust

See the U.S. Army Corps of Engineers’ full photo album on Facebook.

Read our Raw Material blog on the importance of an infrastructure bill.

Watch a video about the value of the Great Lakes to industry.

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Transplant transforms co-workers into familyWhen Jason Reyes’ kidneys failed him, his co-worker didn’t.

A life-saving kidney donation transformed Heather Szymaszek and Jason Reyes from co-workers to family.

Jason asked his doctor to postpone the transplant so that Heather could spend Christmas with her family. It wound up being on her birthday, instead!

The limit for visitors in the room was supposed to be two. But you couldn’t contain the excitement of both families!

In a kidney donation, the recovery time for the donor is longer than for the recipient, but Heather’s remaining kidney was functioning normally earlier than expected.

At a party before the surgery, both families met and learned more about one another. Jason presented Heather with a fun gift which made everyone laugh!

Kelly Nissan

Jason Reyes’ kidneys had failed him. He endured four-hour long dialysis treatments three times each week. He was on the waiting list for a kidney with an average wait time of eight years.

When co-worker Heather Szymaszek learned of this, she remembered a friend who went through dialysis and how awful it was.

“All I thought about was him being hooked up to machines all the time – it’s no way to live. I just knew I had to help,” said Heather.

These two employees at Indiana Harbor’s No. 4 steel producing didn’t know each other very well. But Heather was willing to donate a kidney to Jason.

“The process to find out if I was a match was a lot to go through,” said Heather. “It’s not just one blood test. So many days, so many appointments. And with each one, you’re just hoping the test results will be good, and you

can move on to the next step.”“When the doctor called and

said Heather was a match, I was very surprised,” said Jason. “Chances were slim. I kept waiting for a call back saying that it was all a mistake. It took a few days for it to sink in really. I’ve been battling kidney disease for about nine years and now I had hope. I’m so grateful to Heather. There are 100,000 people on the waiting list and I found a match on the first try. It’s unbelievable.”

Co-worker Jake Cole wasn’t surprised to hear that Heather donated her kidney to Jason.

“She’s the type of person that takes care of everyone else. It’s remarkable what she’s done and it goes above and beyond expectations,” he said. “It translates a message of team-work, of camaraderie and that’s something we preach at No. 4 steel producing. We try to be a family and her generosity exemplifies that we’re a family here.”

Doctors performed the surgery on December 27

– Heather’s birthday.“That day became Jason’s

new birthday,” said Heather. “It was the best birthday gift for

me because I was able to give him the gift of life.”

[email protected]

Robert “Hoagy” Carmichael (right) of Hoagy’s Heroes recognized Aaron Dearth (center) for his Give Boldly contributions. Division manager Mark Kovach (left) joined Aaron in thanking Hoagy for his efforts to support children in need.

Why I Give Boldly…

‘Iron Butt’ Motorcycle Rider is a biker with a heart

Our People>

For several years, Aaron Dearth has been riding for and giving boldly to Hoagy’s Heroes. The nonprofit organizes charity motorcycle rides to support children with life-threatening disorders and autism, or those suffering from the loss of a parent in the armed forces.

More than a decade ago, founder Robert “Hoagy” Carmichael organized a group of friends to complete an “Iron Butt Association” (IBA) long-distance motorcycle ride for fun. Ride by

ride, Hoagy started recruiting other motorcyclists to join in. Eventually, his passions for riding and for giving back came together with the creation of Hoagy’s Heroes. Since then, riders like Aaron have gotten involved – not just for the rewarding challenge of riding hundreds of miles, but also for the hope and joy they can bring to children in need.

Aaron has completed more than 10 long-distance rides and ridden 12,000-plus miles

in Hoagy’s Heroes events, Together, all of Hoagy’s Heroes have logged more than a million “miles of smiles” in support of children’s charities.

“I met Hoagy in 2006. We have a very diverse group of riders with good hearts, and Hoagy spends countless hours dedicating himself to helping others. He has always been an inspiration to me. I have gotten to travel the country and be a part Hoagy’s Heroes for quite a while now. I look forward to

many more years of helping and hope to inspire others to join us,” Aaron said.

Hoagy recently visited Aaron at the Cleveland hot-dip galvanizing line to present him and ArcelorMittal with a plaque of appreciation for their Give Boldly donations.

Learn more about Hoagy’s Heroes at www.hoagysheroes.org.

Want to Give Boldly by volunteering your time to ArcelorMittal’s partner nonprofits?ArcelorMittal hosts targeted volunteer projects throughout the year with nonprofit partners. Email [email protected] for more information about volunteer opportunities at your facility.

Want to Give Boldly by making a donation to your favorite nonprofit organization?ArcelorMittal USA’s Give Boldly program allows employees to request matches for donations to nonprofit organizations. Each employee can request a match of up to $1,500 per year. ArcelorMittal has been proud to match over $600,000 in employee donations every year since Give Boldly’s inception in 2010. Where will you Give Boldly this year? Visit www.ArcelorMittalGiveBoldly.com to learn more.

Shared Vigilance>

ArcelorMittal employees pledge to practice Shared Vigilance on the job. Heather took that concept to a very personal level when she helped save the life of her co-worker. “It’s the most important aspect of working in the steel mill,” she says. Our lives are in one another’s hands – we’re brothers and sisters.” If you have a personal story about Shared Vigilance, please email [email protected].

The decision to donate

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MTE shares thoughts on trails of discovery

Pat Fisher enjoys spending time with Mighty Acorns students, as they hike trails and explore the wonders of nature.

Pat captured these photographs of beautiful ice formations along Lake Michigan on one of his hikes.

Jolice Pojeta

If Pat Fisher tells you to “take a hike” he means it literally. But don’t be offended – he’s also likely to tag along. Pat is a 43-year ArcelorMittal Burns Harbor iron producing MTE. He lives in the small resort city of New Buffalo, Michigan, just across the Indiana/Michigan border.

Pat’s love for the outdoors dates back to when he was a young boy. But he really didn’t make much of an effort to hike until 2012 when he became ill with the flu. He was overweight and knew he had to make some lifestyle changes.

“I thought, this is enough. I need to get back in shape and feel comfortable with the fact that if my car breaks down in the middle of nowhere, that I can make it to find help in any kind of weather.”

That’s when Pat began to walk the beaches along Lake Michigan in the winter. Eventually, he could walk about five miles with no problem during all seasons. Soon he began to

explore trails in Illinois and across Northwest Indiana and Michigan.

To learn more about the area’s open spaces, he became involved with the Chikaming Open Lands and started the Harbor County Hikers.

One of Pat’s most memo-rable hikes was one winter near St. Joe, Michigan. He discovered a shelf area that was once part of the lake bed. The weather turned nasty with sleet and fog. That’s when he noticed a scrub brush area with bushes coated with an inch of ice.

“It was one of the most beautiful things I’d ever seen,” he said. “Truly a winter wonder-land.” He has seen plenty of wildlife on his hikes: trumpeter swans, cranes and even skunks. Then there was the time he was nearly hit by a deer.

“That was something. She was being chased by a dog and was coming straight toward me. She suddenly stopped on the trail, dug her hooves in the ground then ran away. That was strange and a little scary.”

In his free time, Pat also volunteers with the local Mighty Acorns program. Mighty Acorns,

an environmental education curriculum that engages students and teachers in field studies and hands-on learning opportunities, was created by The Nature Conservancy and is now offered through the Science in Action Center at the Field Museum in Chicago. It consists of both in-class work and field trips to nearby natural areas (local field trips are led by Chikaming Open Lands personnel).

Pat believes that an informed public is better prepared to protect their natural resources. As a father and a grandfather, he enjoys passing on his knowl-edge about nature and the importance of stewardship to the students. “I like the idea of sharing with others – especially children – that nature is its own outdoor classroom,” says Pat. “For me, it’s about curiosity, discovery and watching them learn. With Mighty Acorns, I’m just happy when I can share what I’ve learned about nature and that, hopefully, it stays with them so they can pass that knowledge on to others.”

[email protected]

Brendan Ross, Indiana Harbor senior fire systems specialist

Then and now:From studying taste buds to overseeing fire systems

Our People>

Amanda Scott

Brendan Ross joined ArcelorMittal in 2014 as a senior fire systems specialist at Indiana Harbor. His first job out of college, however, was working at a research lab in his home state of Colorado.

Brendan’s dad is a doctor, so he thought he may want to follow in his father’s footsteps and graduated college with a degree in biology. He got certified as an EMT (emergency medical technician) and did some shadowing, but found it wasn’t the right fit for him. He decided to try out being a research assistant in a biology lab at the University of Colorado.

At the lab, he studied the developmental biology of taste cells – how they function and work – and he would test how X-ray radiation could result in taste malfunction. Many people may not know that chemotherapy and radiation can not only cause hair loss, but can also stop taste cells from proliferating. This can significantly damage people’s sense of taste and may make them abstain from eating, which makes it harder for them to survive.

Though he found the work interesting, it was not the best match for his personality. There is a lot of down time in a lab as experiments are run, and it can take decades to publish a paper that may or may not result in new treatment options. Brendan had done a lot of working with his hands in high school and college, such as landscaping and working on sprinkler systems, so when he realized that biology wasn’t right for him, he reached out to some old friends who worked at a fire system company.

He worked on fire systems for two years before moving to Indiana with his wife. Shortly after, he got a job working on the 500 fire systems at Indiana Harbor East and West.

Regarding his experience at

Indiana Harbor, Brendan explains, “There is so much to learn here, staying on top of all the various types of systems. I only knew about fire alarms before coming out here, and now I know about underground piping, fire hydrants, pumps and more. I get to work on interesting projects and people trust and rely on me and my team to keep the facilities safe.”

Being from Colorado, Brendan has also gained a new appreciation for the region.

“I can see why there is a lot of pride in the area with all of the steel mills. Everything is big and impressive and it’s cool to be a part of an industry that makes a product society depends upon.”

[email protected]

Follow ArcelorMittal USA

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Creating rainbows to teach STEM skillsRainbows-in-a-jar are part of Duneland Family YMCA’s after-school program with support from ArcelorMittal

Environmental collaborative workday activities are conducted by local organizations in Northwest Indiana, to support on-site restoration efforts and neighboring facilities.

Students create their rainbows using liquids of different densities.

Duneland YMCA’s after-school STEM program provides children the opportunity to learn about science in project-based activities. ArcelorMittal supports STEM programs in many communities near our facilities.

It may be winter, but the young scientists attending the Duneland Family YMCA’s after-school program are creating their own rainbows in anticipation of warmer weather.

The kids are learning about liquid density and how some liquids are heavier than others. They add food coloring to various types of liquids, such as honey, dish soap, water and rubbing alcohol. By stacking these on top of each other with the densest liquids on the bottom, they create a rainbow-in-a-jar.

This activity is one of many designed to teach students STEM (science, technology, engineering, and math) concepts at the Duneland Family YMCA’s after-school program. Grant support from ArcelorMittal has fueled great improvements to the

STEM learning program. Youth enrolled in the Duneland Family YMCA after-school program experience hands-on STEM activities each week.

“ArcelorMittal is pleased to provide this critical funding to schools and organizations that are taking a leadership role in ensuring students receive the tools they need to pursue their interest in STEM opportunities,” said Jolice Pojeta, corporate responsibility and communications manager, ArcelorMittal.

Students have built their STEM skills through engaging activities, including:• learning about polymers, as they create bouncy balls • experiencing physics and engineering, as they design, build, test, and improve catapults to launch marshmallows

• investigating how objects behave in water by predicting and testing which types of balls will sink or float, then constructing boats to keep pennies afloat• exploring physics concepts like speed, mass, and volume by building simple ramps and racing cans of different sizes and shapes

With a focus on safety, health, social growth and academic enhancement, the Duneland Family YMCA after-school program serves kindergarten through eighth-grade students with a variety of options to explore and develop their interests and talents. The Duneland Family YMCA is a charitable nonprofit focusing on youth development, healthy living and social responsibility.

Jolice Pojeta

A group of volunteers recently came to Burns Harbor to plant several dozen native trees along the plant’s Main Entrance Drive and P Street.

The trees were made available through ArcelorMittal’s partnership with Wildlife Habitat Council (WHC) and the U.S. Forestry Service (USFS). The Collaborative Workday activity involved ArcelorMittal and other local organizations and compa-nies. The groups came together to help with planned onsite plantings as part of their local restoration efforts.

Volunteers included ArcelorMittal employees, along with representatives from WHC, USFS, Praxair, Primary Energy and Purdue Northwest. Volunteers also erected wire fencing around each of the trees to help protect them from local wildlife.

[email protected]

Native trees help restoration effortsOur Partnerships>

5. Trusted user of air, land and water

Kelly Nissan

ArcelorMittal’s commitment to protect and improve the environment is burning strong at Global Research and Development. A prescription fire on the dune and swale site located on the East Chicago Center’s property will restore plant diversity, manage invasive species and help maintain the health of this rich, natural area.

Dune and swale is a unique type of natural habitat that occurs along the Great Lakes. The ten-acre site at R&D was identified several years ago. It features more than 50 species of plants, including one

state-endangered species, Mountain Blue-eyed Grass, and two state-threatened species, Golden and Prairie Hummock Sedge.

Today, all 10 acres are thriving thanks to dedicated R&D employees who’ve volun-teered their time. The area serves as a destination for local school children to learn about the environment while exercising their STEM skills. And it’s an example of what private land owners can do to contribute to the local ecology.

[email protected]

Grant funding supports habitat restoration

Environment>

A controlled fire burns on the front property of Global Research and Development in East Chicago, Indiana. The support and conservation of our shared environment is a priority for ArcelorMittal and a corner-stone of our community giving program. ArcelorMittal made a grant to The Field Museum to develop the plan to restore the habitat which included coordinating several prescription fires over the course of three years. The City of East Chicago Fire Department lit the fire and controlled it to ensure the safety of everyone involved.

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USA

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1 | ArcelorMittal USA | March/April 20181 Company 1 Community 1 Magazine11

Jovanka Childs and Nicolette Voltaggio

Before our eyes, we watched the phase transformation of steel in real time through the use of a confocal scanning laser micro-scope (CSLM). Next level research tools, like that microscope, fascinated the fresh faces of ArcelorMittal Burns Harbor.

This past October, we were among 13 newly-hired Burns Harbor associates privileged with touring Global R&D in East Chicago, Indiana. Here, we discovered the interface between our customers and large-scale steel mill production. For example, before new steel grades are ready to make a debut in a mill, they must first be trialed at R&D.

Trends in research data at a small scale can then be applied to large-scale production. Doing this minimizes the financial risk of running an entire heat of a new product that is unknown to the

line. R&D also works on reducing costs of production by trying to get the most yield out of the materials needed. For example, a small change in coke rate due to R&D’s research can save the company millions of dollars.

Visiting Global R&D provided the associates with several contacts to facilitate greater utilization of the technology developed there. The tour exemplified the importance of continuous improvement efforts and integration of customer needs, research capabilities and mill implementation. During our Q&A session with R&D employ-ees, we learned about the resources available to us – from the product catalog to opportuni-ties to collaborate on projects, trials, and performing research inside the mill as liaisons to R&D. The interaction between research and operations is crucial for further development and utilization of mill technology and, it is clear, through their investment in exposing new

hires to R&D, ArcelorMittal USA is working toward improving the future of steel.

Following the tour, Burns Harbor senior management met with the associates to debrief the visit. We expressed that our trip added value to the associate experience and that future associate groups would also benefit from participating in a similar R&D tour. The leadership team also identified taking an active career approach, by involving associates in various areas of the business and helping drive our knowledge as important factors to associate and career development.

Jovanka Childs is an associate engineer in quality assurance at the finishing mill, ArcelorMittal Burns Harbor

Nicolette Voltaggio is an associate engineer in quality assurance in steel producing, ArcelorMittal Burns Harbor

Kelly Nissan

Lakeshore Focus is Northwest Indiana’s public affairs forum. Host Keith Kirkpatrick leads conversations with local leaders and politicians about the issues and events that affect Northwest Indiana.

During an interview with R&D’s David White and Jayanth Chintamani, they identified steel as infinitely recyclable – a distinct environmental advantage over aluminum. They discussed how R&D plays a major role in the development and promotion of advanced high-strength steels – vital to enhance safety in the automotive industry. They

acknowledged that it can be difficult to make the newest grades of steel and commended plant employees for their successes.

Click on the video icon associated with this article to watch the entire interview.

[email protected]

Research and development: a cornerstone of sustainabilitySteel is the material of choice for the modern world. Directors David White and Jayanth Chintamani, from ArcelorMittal Global Research and Development, confirmed this sentiment during an interview with Keith Kirkpatrick, host of Lakeshore Focus.

Sustainability>Associates inspired by R&D tourGlobal R&D East Chicago hosted 13 Burns Harbor associates for a tour and ‘lunch and learn’ session.

Jayanth Chintamani, director, automotive product research (left) and David White, director, process research (right), spent time with Keith Kirkpatrick, host of Lakeshore Focus talking about sustainability and being responsive to customer needs. Lakeshore Focus airs on WYIN-TV, the PBS television station in Northwest Indiana.

Burns Harbor employees who toured ArcelorMittal’s Global R&D facility in East Chicago (from top left): Amanda Dujmovich, Brady Ritzert, John White, Matthew Hoyert, Soumitra Agashe, division manager, operations technology, hot rolling and finishing; pictured (from lower left): Jovanka Childs, Eli Hofer, Nicolette Voltaggio and Elizabeth Hartman. Those participating in the tour but not available for the photo were: Lindsey Loberg, Bryce Barringer, Manuel Verdeja, Joseph Syammach and Robert Kuemmeth.

The Association of Women in the Metal Industries (AWMI) recently awarded ArcelorMittal USA its 2017 Cornerstone Award.

Awarded to companies that exhibit outstanding commitment to the work of AWMI, the award selection process includes an evaluation of membership support, speaker accessibility and conference sponsorships.

Presenting the award at AWMI’s annual conference in Chicago, was Donna Peters, AWMI International past president and ArcelorMittal USA employee. ArcelorMittal USA employees attending the conference

accepted the award on the company’s behalf.

“It was an honor to be able to present this award to ArcelorMittal USA on behalf of AWMI,” said Peters. “ArcelorMittal has been a long-time supporter of the organization and of my individual involvement. I was proud to present this award to all of the ArcelorMittal employees who attended this special company recognition.”

Leah Mojeski, who works at ArcelorMittal Dofasco and is the director of the Northeast Region for AWMI added, “I have been a member of AWMI for more than

15 years and it has been a true privilege to work with and mentor women and men in the metal industry. ArcelorMittal Dofasco strongly supports my involvement in the association and encourages me to grow my leadership skills as an executive board member. I’m very proud that ArcelorMittal received the AWMI Cornerstone Award.”

For 36 years, AWMI has been an international, professional organization dedicated to promoting and supporting the advancement and professional development of women and men in the metal industries.

ArcelorMittal USA receives AWMI Cornerstone Award

Recognition>

You can also find these PDFs and others by going to myarcelormittal.com and clicking on USA Publications.

Freshen up that bulletin board with new content!

Tired of seeing the same old stuff on your department’s bulletin board?USA Communications has you covered. Just click on these images or email the communications team at [email protected] to get access to printable PDFs.

No Harassment Heroes

Stay Connected

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1 Company 1 Community 1 Magazine12 ArcelorMittal USA

One South D

earbornChicago, IL 60603USA

GlobalThe Lion City’s latest landmark built with ArcelorMittal steelDUO, the newest addition to Singapore’s flotilla of skyscrapers, is a contemporary twin-tower integrated commercial and residential development. Located in Bugis, the city-state’s vibrant cultural and heritage district, the development’s founda-tions were built with 2,082 metric tons of HISTAR® steel sections produced at ArcelorMittal Differdange in Luxembourg.

AmericasDofasco reaps benefits of Gent benchmarking with new automated coil managementWith the goal of automating the ‘M building’ stockyard, a team at ArcelorMittal Dofasco developed a pilot project for a large-scale, multi-year, automated coil management (ACM) program. The ACM program will utilize ArcelorMittal Gent’s (Belgium) Genesis technology platform to automatically track and optimize coil movements and to automatically operate an overhead crane. The project will reduce tracking errors, enable increased inventory turnovers, and increase utilization of a local axial wrapping machine.

EuropeUnited Kingdom’s biggest online fashion store gets European boost thanks to our steelOur company helped ASOS – the biggest online-exclusive fashion store in the United Kingdom – expand further into the European market by supplying steel for its first-ever distribution and logistics center outside of Great Britain. Located in Großbeeren, south of Berlin (Germany), the modern distribution center – dubbed Eurohub – is being built with Hacierba® liner trays and 2,000 metric tons of steel beams produced at ArcelorMittal Differdange, Luxembourg and ArcelorMittal Dabrowa Gornicza, Poland.

ArcelorMittal expands solar energy portfolio with Exosun acquisitionThe Commercial Court of Bordeaux has confirmed ArcelorMittal will take over the assets of Exosun, a company that specializes in trackers for solar farms. Based in Martillac, France, Exosun designs, develops and markets steel solar trackers that allow photovoltaic panels to follow the sun’s path, and thus increase the performance of ground-mounted solar farms.

Heat recycled from steelmaking to keep Luxembourg’s Belval district warmArcelorMittal, Luxembourg’s Ministry of Economy and SUDCAL, a company facilitating urban heating, have officially launched an innovative project to recycle the heat generated by the plant’s facilities to feed the urban heating network of the Belval district in Luxembourg. The project was initiated by ArcelorMittal and is part of the sustainable development approach implemented in Luxembourg.

For more information, go to www.myarcelormittal.com.

1 is a publication for all ArcelorMittal employees located within the United States of America.Editor:Liz JohnsonUSA Communications Team:Mary Beth Holdford, Kelly Nissan, Summer Paris, Jolice Pojeta, Scott Posey, Heather Ross, Amanda Scott, Beth Spurgeon, Bill Steers, Marcy Twete, Heidi UmbhauGuest Contributors:Jovanka Childs, Greg Ludkovsky, Nagendra Singh, Nicolette VoltaggioPhotographers/Videographers:AWMI, Ashley Cowan, Huntington Ingalls Industries, Henry Cuevas, Damen – www.damen.com, Duneland YMCA, Andrea Eisenberg, Barry Felton, Pat Fisher, Liz Johnson, Susan Kirt, Caroline Martin, Gabriel Monroy, Jolice Pojeta, Reyes and Szymaszek families, Nagendra Singh, Tony Trial, U.S. Army Corps of Engineers, Wildlife Habitat CouncilDesign:Goodnight and AssociatesPrinter:Accucraft ImagingCirculation:20,000

1 | ArcelorMittal USA | March/April 2018

Global News in Brief

Content Links

Pictured on cover:The depicted “connected glasses” enable remote interaction between the operator and the R&D team to allow inspection of the surface condition of steel strips for packaging after undergoing passivation. The project, currently in pilot stage, is a cooperation between measurement and control department at Global R&D Maizières and ArcelorMittal Atlantique and Lorraine Basse-Indre plant in France.

When this icon is shown, a video relating to the story is available for viewing on myarcelormittal.com.

When this icon is shown, more photos relating to the story are available on myarcelormittal.comWhen this icon is shown, more information about this story is available on myarcelormittal.com

@ArcelorMittalUS

Steel Search Trivia Challenge

What is the cost of building a Virginia-class submarine??

In each issue of 1 Magazine, you’ll find our Steel Search Trivia Challenge. Answer the question correctly (you’ll find the answer in this edition), email your response to [email protected] and you’ll be entered into a random drawing for a $100 gift card (one winner per issue, ArcelorMittal USA employees only). Deadline for entries for this edition’s contest is April 6, 2018.

Another winner in ArcelorMittal’s Steel Search Trivia ChallengeIn the January/February edition of 1 Magazine, we asked: What is “The Internet of Things?”

We selected our latest winner (in a random drawing) from hundreds of entries and the winner is Buford Wilson of Cleveland. He had the correct answer (the concept of connecting any device with an on/off switch to the internet) and will receive a $100 gift card.

Steel Search Trivia Challenge>

Sustainability

Stay in the picture!Do you need a reason to work safely? How about these? Your family. Your friends. Your co-workers. Your community. Even your pets! Here’s why some of your co-workers work safely.

Send us a picture of the reason(s) you work safely and you may be featured in an upcoming edition of 1 Magazine. Email a high-quality photo to [email protected] and write “Here’s my reason” in the subject line.

Let’s make 2018 ArcelorMittal’s safest year yet.

Here’s our reason. We work safely because we want to make sure to be at every basketball game, every theatre performance and every dinner together. Our family is why we work safely.Larry Kuzdas is an electrician and Jen Kuzdas is the ICD coordinator at I/N Tek and I/N Kote. They are the parents of Logan (12) and Kayla (10).