ANNUAL REPORT ARCELOR 2003 - paperJam

BCSArcelor in BrazilThe European construction industry uses almost 58 milliontonnes of steel annually. It is an important growth marketfor Arcelor, which derives more than a quarter of itsrevenues from the construction market.In the construction industry, steel is synonymous withefficient solutions for a vast array of applications. Be itin new construction or renovation, steel has multipleuses: structural shell, roofing, facade, partitions, floors,decoration, technical equipment, air-conditioning, heating,water supply, bridges, tunnels, highway infrastructure,construction site facilities, accessories, and more.Arcelor participates in these markets with a particularlyextensive offer, incorporating all of the products marketedby all of its sectors. This range includes all major applicationsof steel, offering solutions that are reliable,aesthetic, environmentally friendly and economicallyefficient.BCS – Building and Construction Support – is a unitdedicated to developing Arcelor solutions. BCS hasconstruction specialists who are able to handle projectsand suggest appropriate solutions to customers byfacilitating interaction between the market players andArcelor’s business units, and by sharing their experienceand solutions that have been proven, approved and putto the test throughout the world.The principal missions of BCS are carried out in closecooperation with the Group’s business units:- monitor the markets and identify projects prior to theissuing of tender invitations in regions in the core markets(Germany, Benelux countries, France, Spain, Italy);- offer and ensure the adoption of Arcelor solutions forlarge construction projects that have a representative orshowcase character in Europe;- take advantage of the comprehensive distribution andtrading network to create value chains for fragmentedmarkets, geared to the innovative solutions developed byArcelor;- make the various players in the construction industryin particular aware of and familiar with the products,solutions and services of the Arcelor group, includingby way of the Internet.Arcelor has been present in Brazil for more than 80 yearsthrough its 54.03% subsidiary Belgo-Mineira. Thiscompany, which dates back to 1921, specialises in steellong products and operates in partnership with othermanufacturers, including the Belgian group Bekaert, awiredrawing business.Since 1998, Arcelor has also held significant stakes inAcesita (27.68%*) and Companhia Siderúrgica de Tubarão,CST (29.61%*). Acesita, which Arcelor manages, is theleading producer of stainless steel in South America. CSTproduces flat carbon steel.In 2000, Arcelor launched construction on a new siteof a cold rolling and special coating plant for the automarket, Vega do Sul, in which it holds 77.88%*. This$400 million investment, which came on line in 2003, todayrepresents Arcelor’s largest international investment.Through this project, Arcelor has furnished Brazil witha new technology and has contributed to the creationof 350 direct jobs and 250 indirect jobs, the operatorsbeing trained in the Group’s European plants.Arcelor plays an active role in the development of thesteel industry in Brazil. During the last ten years, theGroup has quadrupled the revenues of Belgo-Mineiraand has made it a global benchmark for the productionand processing of wire rod, while encouraging the progressivetakeover of Acindar, an Argentine steel producer.Arcelor also restructured Acesita and led to its positionas one of the best performing stainless steel producersin the world.Finally, Arcelor is supporting the development of CSTwith the construction of a strip mill and increased liquidsteel production capacity.In 2003, all of Arcelor’s Brazilian holdings representedrevenues of 9 billion reais, 45% of which was earned fromexport, and directly employed nearly 15,000 people.general information > portrait of the Group* % of total interest (direct and indirect) in the total share capital as atDecember 31, 2003.ANNUAL REPORT ARCELOR 2003 13