ANNUAL REPORT ARCELOR 2003 - paperJam

Long Carbon Steels1. STRATEGYThe Long Carbon Steels sector of Arcelor produces and markets abroad range of carbon steel products: beams, concrete reinforcingbars, merchant steels, wire rod, sheet piling, rails for publictransport, rails for gantry cranes, special sections, semi-finishedproducts and drawn-wire products.The sector ranks first worldwide in the production of beams,sections and sheet piling, and is among the leading players inconcrete reinforcing bars, wire rod and special sections.As a full service provider with an integrated logisticssystem, with a strong presence in Western Europe andSouth America and a wide network of sales and tradingoffices in Europe, Arcelor’s Long Carbon Steels sectoris pursuing a strong growth strategy in all its markets,backed by the quality of its products, cost control andadherence to delivery schedules.In Western Europe, the implementation of a sales policydesigned to increase profitability and meet customerneeds by offering a broad range of services willstrengthen the position of this sector in its markets.In other European countries, the sector is deploying aresponsible growth policy, while in export markets it is ina position to take full advantage of the opportunities thatarise. In the Americas, the strategy of the Long CarbonSteel sector is based on targeted investments tostrengthen its cost leadership position, an efficientdistribution network in Latin America, and on the exportof niche products.2. ORGANISATION OF THE SECTORGiven the specific technical and commercial propertiesof the different product families and the desire to acceleratethe transfer of best practices among comparableplants, in 2003 the Long Carbon Steel sector reorganisedits business in Europe into separate businessunits:- one business unit combines merchant steels, concretereinforcing bars, wire rod and semi-finished products,- one business unit manages the beams business,- one business unit combines the sheet piling, rail andspecial sections activities.In each of these three dedicated units, commercial andindustrial activities are grouped under a single authority.The Drawn-Wire Products and Americas business units,which already operate on the principle of one combinedcommercial and industrial authority, complete the sector.activities of the Group > long carbon steelsIn drawn-wire products, the steelcord unit is following therelocation of its principal Western European customersinto Central and Eastern Europe by increasing thecapacity of its plant in Hungary. It continues to growsteadily in Asia through its plants in Korea and Chinaoperated in partnership with Kiswire. The Low CarbonSteel unit is pursuing its strategy of growth in high valueaddedproducts and niche products.ANNUAL REPORT ARCELOR 2003 47