 |
The conclusion of the merger of the Arcelor Group companies in Brazil, in 2005, increased the growth potential of Belgo, CST and Vega do Sul, resulting in an even more consistent value creation potential for shareholders. Part of a merger movement in the steel industry-whose objective was to bring together assets to take advantage of scale and operational flexibility-the creation of Arcelor Brasil was based on the complementarity of the competitive differentials provided by the three steel companies in all dimensions of their activities. These differentials drove the Arcelor Group to pioneer in Brazil its growth strategy beyond Europe. Arcelor Brasil is, therefore, a platform on which to strengthen the leadership of the group in Latin America.
The commitment to sustainability is part of Arcelor Brasil and guided the process of forming the company. First, Arcelor Brasil was the integration of three companies that always approached management strategy via sustainability and corporate responsibility. Second, the assets were merged in a way that included broad participation by our employees and transparent interaction with the public, including shareholders, market analysts, union representatives, suppliers, and clients.
In our vision, sustainability is made possible by working together for society, like a network that is complemented and strengthened by the union of its different parts. For this reason, our principal strategy is education for sustainability. Internally, we have already made great progress and we want to share this vision with the public. Every person, in his or her personal and collective activities, has responsibilities, but this can only be seen when we look at issues from many points of views. Education, the basis for human growth, is what enables us to understand all aspects of development and our ability to forge ahead together-society, companies, and the government.
On the economic and financial front, the creation of Arcelor Brasil itself satisfies what we consider the first pillar of sustainability: profits. A company is not driven only by profits, but no company operates without them. By integrating the assets of three companies with competitive activities in two market segments-long and flat steel-we created value for all stakeholders in our businesses. Belgo concentrates on long steel and serves, principally, the domestic and regional market. CST emphasizes production of flat steel and has a strong presence in the international market. Its merger with Vega do Sul created a strong domestic market for it as well. This combination results in lower exposure to risks. We gained flexibility both in relation to products and in terms of geographic presence, which allows us greater income stability.
Arcelor Brasil brought together companies that were recognized for their progressiveness in terms of human resources management, which has guaranteed the development of internal talent-another pillar of our activities. Hence, we intend to continue to appear on lists of the best employers in Brazil, maintaining our entrepreneurial focus at all levels, as well as our mechanisms for attracting, developing, and retaining talent, developing competencies, sharing knowledge, and stimulating the permanent commitment of employees to performance and sustainable results.
Adherence to Sao Paulo Stock Exchange (Bovespa) Level 1 corporate governance, voluntarily satisfying almost all the requirements of the Novo Mercado (New Market), confirmed our commitment to improving the practices already consolidated at our companies. It also showed our respect for our shareholders, our society, and our country. This business posture is oriented by a corporate relationship built on the pillars of transparency, broad settlement of accounts, and equality of treatment. Our vision of sustainability is also integrated with our growth strategy, aligned with the Arcelor Group's plans for Latin America.
Our objective is to take advantage of the opportunity to share research and development advances, due to our position as part of the world's most efficient steel group. Thus, we will achieve operational growth together with an increase in productivity and competitiveness. To put this strategy into effect, we assume a scenario where world growth is maintained and Brazil continues politically and economically stable, with important opportunities in the steel market.
More relevant than the good results achieved by the subsidiaries in 2005 is the certainty that Arcelor Brasil is ready to evolve. Today, our companies have a response capability unmatched in the industry, thanks to past and current investments. That will allow us to up to double our production volume in the next five years, reaching a production output of 20 million metric tons per year. The pace of this evolution will depend solely on market conditions, given the sustainability vision that has always guided our business.
Solidly grounded to meet our commitment to the future, we are convinced that Arcelor Brasil will be increasingly seen as an interesting enterprise for many, and a safe, attractive, value-generating, growing, and sustainable business for all of our shareholders and society.
José Armando de Figueiredo Campos
President - CEO
|
|
