Companies meeting the demand for steel
Publication of the Rich List in the Sunday Times (27 April 2008) showed members of the international set to be the richest. Lakshmi N. Mittal, President and CEO of Arcelor Mittal heads the list. Mr Mittal, 57, who retains his Indian passport but spends much of his time in London, tops the list for the fourth consecutive year. His family's wealth has increased by £8 billion to £27.7 billion in the past year thanks to a strong demand for steel (The Times, April 28, 2008).
Mr. Mittal founded Mittal Steel Company (formerly the LNM Group) in 1976. Arcelor Mittal is the combination of the world's number one and number two steel companies, Arcelor and Mittal Steel. Over the years, Mr. Mittal has also championed the development of integrated mini-mills and the use of Direct Reduced Iron or 'DRI' as a scrap substitute for steelmaking and led the consolidation process of the global steel industry. Other related activities of Mittal Steel include shipping, power generation and distribution, and mining (Mittal Steel Website).
Another successful Indian steel company is Tata Steel, part of the Tata Group, a multinational conglomerate based in Mumbai and the largest private company in India. It is one of the top five steel companies in the world. In December 2006 Tata took over Corus, the Anglo-Dutch steel producer (Wikipedia).
See the Times 100 case study on Corus, the UK's biggest steel manufacturer which employs nearly 50,000 people in 40 countries. It is the eighth largest steel maker in the world with an annual turnover of nearly £10 billion. Corus works in a sustainable way to meet the demand for steel, which is particularly in demand by newly emerging and developing states. Steel is 100% recyclable and can be used time and time again with no loss of quality.
Potential Study Questions:
- In the market place, demand depends on several factors. Name three of them.
- Define the term 'disequilibrium'.
- What happens to a market when it is in disequilibrium and why?
- Steel is unrivalled as a sustainable packaging material for a number of reasons. Refer to the case study and name three of them.