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ArcelorMittal Galati Corporate Responsibiliy Report 2013

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transforming tomorrow

Since 2010 we have been providing information about our activities and developments in corporate responsibility year by year, based on our Stakeholder Engagement Plan. This year, we have decided that it is time that we should issue our first Corporate Responsibility Report.

2 | ArcelorMittal Galati

Introductory word05

ArcelorMittal Galati 07

Investing in our people

12

Making Steel More Sustainable

24Enriching our communities

40Transparent Governance

46

Introductory Word


The Steel Plant is not just a steel producer. It is the place where thousands of people earn their living as employees, contractors or workers for the providing companies. We are responsible for each and every of these people and every action and decision that we take is meant to be in favour of the people and the community where we live and work.

It is quite simple to pretend to be a member of the community and, perhaps, by putting up an appearance, to try to convince others of your good intentions. This is, however, not our case.

We have assessed and changed completely the approach in relation to the representa-tives of our community. In terms of envi-ronmental issues, once one of the major concerns of Galati city, we have opened our doors and, with transparency and honesty, we have invited authorities, nongovernmen-tal organizations and the media to get a sense of realities, such as they are.

Likewise, we have changed completely our philosophy on investing in our community. We have understood that the most important issues are related to health, education and community development. We have focused only on these aspects, in order to raise the efficiency of our investments.

Our purpose is not only to help, but to ensure that our support adds value to the health, education and development of our community.

But our main contribution to the community is related to our fight to save the plant, the jobs and to continue to produce steel in

Galati. It was and still is a tough battle where we can already see early results.

We have been affected by the high cost of energy. During the last two years, we have explained how much these things affect us. But we did not only complain, we have taken action mainly by investing significant resources in improving our energy efficiency.

However, due to the deterioration of our market and business environment in Roma-nia, we were unable to return to breakeven point. ArcelorMittal Group “injected” in the recent years, ¤ 700 million to save the plant in Galati. Out of this amount, ¤ 200 mil-lion represented investments. It was our response to the hardships we went through.

But our battle is not over yet. Our commit-ment to Galati is to win this battle, to remain the main pillar of the economy in the area and an active member of the community that we operate in.

Bruno Ribo, CEO of ArcelorMittal Galati: “We will win the battle for survival. We will remain the main pillar of the local economy and an active member of the community”

About ArcelorMittal

ArcelorMittal is the world‘s leading inte-grated steel and mining company, with a presence in more than 60 countries. ArcelorMittal is the leader in all major global steel markets, including automotive, construction, household appliances and packaging, with leading Research & Development (R&D) and technology, as well as sizeable captive supplies of raw materi-als and outstanding distribution networks.

ArcelorMittal Galati

Scope of the report

The data used for the purposes of the Report primarily cover ArcelorMittal Galati corporate responsibility approach and KPIs, to encour-age a regular and constructive dialogue between the company and its stakeholders. We are committed to a responsible management of our assets integrating Health & Safety and environmental protec-tion into current and future business. We expect that this approach will lead us to increase our overall performance and sup-port a sustainable future for all interested parties: our employees, customers, suppli-ers, shareholders, communities, organiza-tions, authorities. Our Company is aware that it has a duty to its stakeholders: to operate in a responsible and transparent manner, structured around four focus areas, which reflect the key priori-ties of our business and our stakeholders.

ArcelorMittal Galati

Located in the South-East of Romania, ArcelorMittal Galati employs 6,980 people and is the largest integrated steel plant in the country and leader in manufacturing metallurgical products, with a production capacity of 3 million tonnes of steel. Galati, known as the ‘steelmakers’ city’ is situated on the banks of the River Danube. The Com-pany has 6 operating facilities in Romania, which include Galati, Tulcea – a lime quarry, Iasi, Roman, Hunedoara and Romportmet – a captive port on the Danube.

We focus on four areas: investing in our people; making steel more sustainable; enriching our communities; and transparent governance, a principle that underpins thefirst three areas.


Our people are at the heart of our busi-ness. Their success is our success. We need their ideas and rely on their hard work and commitment. We treat them with dignity and respect, investing in their development, and providing them with a safe and healthy working environment.

Making steel more sustainable

We are using our expertise in steel to find ways to operate more efficiently, to develop new processes and more sustainable practices, and to work in partnership with our customers and suppliers to help them achieve their environmental goals.

Enriching our communities

We play an important role in the com-munities where we operate. We want to contribute to the development of strong and sustainable local communities, wherever we are in the world. We do this by being sensi-tive to local cultures, issues and priorities, by engaging with our communities in an open and transparent way, and by working in active partnership with local and national organizations.

Transparent governance

We believe in open and visible governance, grounded in business reality. We will take steps to understand our true impacts, pre-dict future consequences, and manage risks consistently across our operations. We will engage meaningfully with key stakeholders, and respond in a transparent manner.

ArcelorMittal is transforming tomorrow by…

…this is all underpinned by Transparent governance

Investing in our people Making steel more sustainable

Enriching our communities

Our people are at the heart of our business. Their success is our success.


Our corporate responsibility approach

Our position in our industry brings unique responsibilities and opportunities. We have a responsibility to operate profitably, while adding value to our stakeholders in a responsible and transparent manner. We look to identify opportunities to instill pride in our workforce, gain admiration from our peers and build the trust we need in the communities where we have a presence. This is what our strategy for corporate responsibility is designed toachieve. Simply put, corporate responsibility is about how we do what we do.

Map of our stakeholders

Understanding our stakeholders’ needs and expectations is very important for our company in order to enjoy sustainable success and strengthen our reputation.

ARC 2015+ the most Comprehensive Transformation ProgrammeARC ( Accelerate, Succeed, Con-solidate)

The economic crisis that broke out in 2008 brought about deep changes for us. Our natural market, the Black Sea, is now the toughest market in Europe. In the recent years, new competitors have emerged and Turkey became now from an importer an ex-porter of steel. “We are now like a red island in a blue sea of competitors”, stated Bruno Ribo, the C.E.O. of ArcelorMittal Galati.In addition, the Romanian market has greatly shrunk as compared to 2008, due to the slowdown and stoppage of infra-structure projects. The times when we could produce and sell large volumes of rolled products are gone and the prospects for recovery are limited. All these problems led to the need of transformation, of adapting to new conditions. Had we remained immo-bile, we would have had the fate of other steel producers, who have shut down their operations. Launched in 2009, the transfor-mation program ARC 2012 was, in fact, the key to our survival.

Successful Results of ARC 2012

But what has been managed so far? The decreasing curve of accidents is the proof that Zero Accidents is a feasible target. Now, we have a clear set of rules, good nonconformities identification system and incentives for the staff observing the rules. The product quality is now the best in our history. Nonconformities are cut to a third as compared to the previous years. We de-livered to our customers in due time and in full. The variable costs with the raw materi-als and the energy have been reduced by 90 Euros per ton. We have quickly adapted the “industrial footprint” of the plant, which means that we use the necessary equipment for the market demand. We have also adapted the maintenance by adopting a system to avoid accidental shutdowns proactively and the spare parts manage-ment is much improved now.

139 communication meetings have been organized between the management and the em-ployees of the Steel Plant within ARC 2015+ Program

Our Vision

We are all wondering: do we have a clear vision, what is the direction we need to follow? Do we know where we will be in 2015? We intend to transform ArcelorMittal Galati into a smart, agile, flexible and profitable integrated steel plant, acknowledged to be a landmark in the region for its achievements in terms of safety, the quality level of the products and the service to the customers. Our current vi-sion is to continue the deep transformation process started four years ago, focused on our organization and the way we conduct our business with view to achieving economic stability.


Transformation, a way of lifeOur Values

What are the main values to be looked up to in our approach? First and foremost, we need to be committed, which means engagement and hard work. Then, we have to cooperate with one another to reach our common goal, including transversal work and trust. Transparency is not an aspect to be neglected, considering that issues can be solved better and faster when known by all parties involved. Not of a lesser importance are the respect for customers, suppliers, employees, superiors, stakeholders, assets, and responsibility - meaning ownership for the actions taken. Only by involving these features in our activity we can achieve credibility.

Our Objectives

Health and Safety has always come first for all our employees, as well as contractors. Only a safe company can be successful! The good results achieved so far need to be confirmed as well. Then, it is vital that we ensure our customer loyalty. How? By way of a new quality-service approach. The third important target for us would be obtaining the best cost efficiency in order to become sustainable.Relying on the largest transformation program in Romania, we could be able to Accelerate progress, to Reach our targets and Consolidate results involving every of us from worker to CEO.

The present and the future challenges show that our only viable option is to transform permanently. “In ARC 2012, we delivered most of our results. Our way of adapting is our Transformation Program. We must continue, we must speed up and this will help us win in this post-crisis world. Trans-formation should be our way of life. We are not going from A to B; there is no end to this travel”, said Bruno Ribo, C.E.O. of General ArcelorMittal Galati.

Our Mission

How is the change of our unit possible? By way of our rapid transformation and ad-aptation to ever-changing conditions, “ARC 2015+” is a further step, meant to ensure the development of our integrated plant in a post-crisis world, the only alternative to disappearing from the market.Maintaining ourselves in the current posi-tion, whereas the economic realities are changing fast and dramatically is not a sus-tainable option for us. We must transform and adapt ourselves or we will disappear as a steel producer.

Health and Safety

We operate in an industry where workplace safety is vitally important, and this continues to be our number one priority. We want ArcelorMittal Galati to be a place where people can fulfill their potential, feel that their views are taken into account, and they are supported by a committed leadership team.In 2013, ArcelorMittal Galati has achieved, for the first time in its history, the third consecutive year without recording any fatal work related accidents. In 2014, the company will continue and increase its efforts to improve the health and safety of its employees by way of various projects and

an investment effort in Health and Safety measures. We work vigorously towards the goal of zero accidents and injuries.The “Journey to Zero” programme is about preventing accidents by creating a culture of shared vigilance across the Company about every aspect of workplace safety. We do this by raising awareness of safety issues among our employees and contractors, sharing best practice, monitoring potential risks and ensuring that appropriate action is always taken whenever risks are identified.

To succeed in our journey, we need the involvement and commitment of everyone working for and with us. “Safety is every-body’s business”. From now on we want to push our Health & Safety improvement further, from a compliance attitude to a culture of belief. Health and Safety is an integral component to each of our 3 existing values - Quality, Sustainability and Leadership. In the past three years, the Company has developed special SMART trainings for its employees and contrac-tors to identify the risks of injuries and also a centralized system of observation, monitoring and reporting dangerous situations.

Fatalities: evolution 2005 – 2013


A safety culture We know that we will only achieve our Journey to Zero if we have a culture where the employees, wherever they work in the organization, take responsibility for their own safety and that of those around them: colleagues, superiors, collaborators, con-tractors and visitors. With that end in mind, we have launched a number of leadership and awareness programmes across all of our sites. For example, we have set out what every employee can do to contribute to a safer workplace in our 10 Golden Rules of Safety.

Journey to Zero - Five Steps BackIn 2013, 3 years have been completed with no fatality in the Steel Plant, following a work accident. At the same time, we had a number of 16 lost time injuries. In order to raise awareness among our colleagues as regards the importance of their own safety we produced a movie depicting the circumstances that those terrible accidents came about.

“Unfortunately, this film shows that in our Journey to Zero accidents, we made five steps back in the first half of 2013 in Galati. Looking into the cause these events, I found many common points. The first is that behind every such tragedy, there is a human life at stake, a family, a lot of pain, which is often shared by the victim’s colleagues. We do not want this to go on. Another common feature is that all these accidents could have been avoided. Let’s be vigilant! Let’s think that every time we come to the work place, our work can become dangerous!” stated Bruno Ribo, the CEO of ArcelorMittal Galati.

Health and Safety thematic session for students – The first event of the Internship 2013 Program was focused on our main priority, Health and Safety. The Thematic Session gathered over 80 students who participated both in theoretical presentations and practical activities, but also professors from the educational environment of Galati. The students had the chance to put their knowledge into practice during a competition which lasted all day.

This is the main message that Bruno Ribo, the C.E.O. of ArcelorMittal Galati, conveyed to all of us on the Health and Safety Day 2013. „I have mixed feelings today. On the one hand, I am proud and happy that there are more than 2 years now since we had a fatality and on the other, that we registered four lost Time Injuries only in the last month, the most re-cent occurring the other day, when a young electrician was about to lose his life at the Continuous Casting”, pointed out Bruno Ribo, on the fact that we still have a lot of work to do in our Journey to Zero.

The Global Health and Safety Day was celebrated in our unit in the presence of high

officials from the management of Flat Car-bon Europe, the heads of the Labor Inspectorate, the Emergency Situations Inspectorate and our social partners. Every one of them raised a warning flag as regards the crucial importance of working in safe conditions and of taking care of our col-leagues in the spirit of shared vigilance. ”Avoiding all risks that might lead to losing lives is a moral obligation for all of us. There-fore, it is highly important that we experience a mental switch once we enter the gates of the plant”, addressed the audience Robrecht Himpe, the C.E.O. of Flat Carbon Europe.

Everybody attending the event held a moment of silence in the memory of the 29 colleagues who lost their lives during their daily activities in the sites of ArcelorMittal all over the world in 2012. At the end of the ceremony, our colleagues in the Health and Safety Department organized a festivity of awards for the departments and the con-tracting companies with the best results in the field in the last year.

”We are Still Fragile in the Field of Health and Safety”

About 96% of our own emplo-yees and contractors were involved in the Health and Safety Day in 2013, which was transformed into the Health and Safety Month during April 15th – May 15th.

Health Week

With view to supporting its employees improve their health, ArcelorMittal Galati organized, in early October, along with all Group’s units, the Health Week with specific actions ranging from routine investigations up to sporting events or trainings on first aid in different situations.

Thus, at the beginning of the sequence of events, our colleagues in the Health and Safety Department launched a vaccination campaign against the seasonal influenza, according to a regulation communicated in due time internally. At the same time, each of us was given the possibility to check our stress level, by way of a questionnaire, available on the Company’s intranet starting from the last week of September.

During September 30th – October 4th, in all the access points on the Plant, an informa-tive campaign regarding the harmful effects of smoking and the alcohol consumption was rolled out. The action had a power-ful visual character. Moreover, another campaign was carried out for the prevention of cardiovascular and nutrition diseases, including a caravan with medical staff from Medlife clinic, where the ArcelorMittal em-ployees were able to have several specific medical investigations done.

At the end of the week, we took part in an hour`s walk in the city, the so-called Global Race, to work out a little bit and also for sight seeing downtown in Galati city. A health cross, where participants of all ages were expected, took place on Saturday, October 5th.

Health Week: Medical Checks,Vaccination and Awareness Campaigns


MedLife, the New Health Services Supplier for ArcelorMittal Galati Employees

Starting July 1st 2013, the medical services for the employees of ArcelorMittal Galati will be provided by MedLife. MedLife is the

biggest Romanian supplier for medical services, with 2,500 employees (1,700 with medicine specialization).“We express our confidence that the new supplier will improve the quality of the medical services for the employees”, said Mihaela Craciun, Head of Human Resources ArcelorMittal Galati.

Emergency Situations: Trainings, Raising Awareness

· The training and development pro-gramme for a team within the Fire Extinction and Intervention Company continues for res-cuing from heights and extrication exercises.

· 140 drills were performed on Emergency Situations within various departments in the ArcelorMittal Galati Steel Plant.

· Monthly training of 140 rescuers.

· Annual recertification of 78 rescuers

With a 0.81 % target established in terms of NCOs to the Golden Rules, we have managed throughout 2013 to be better than that; we have reached 0.66% on average.

H&S NCOs ( nonconformities) Percentage on Golden Rules 2012 vs. 2013 employees

· Total number of employees – 6,980

· Trained employees – 5,284

· To be trained - 1,696

SMART* trainings are especially designed and organized for the development of the skills in iden-tifying the dangers and raising awareness on the risks at the workplace during the activi-ties carried out on the ArcelorMittal platform, for the management and for the rest of the workers, both our own and the contractors.

* SMART (Specific, Measurable, Approachable, Realistic and in Time)


Human Resources

Human Resources are developed at ArcelorMittal Galati on the following key- principles:

• Transparency • Unconditional respect• Fair and non discriminatory approach • Communication and fair information in due time• Attention paid to social problems and to the families of our employees. All these principles lead to the respect of ArcelorMittal: quality, sustainability and leadership, correlated with the commitment shown for People and within the spirit of our activity.

Quality – depends on People on all aspects, customer orientation, care for occupational safety and environment;

Sustainability - sustainable business development for the generations to come which supports the feeling of belonging to the company, group and community;

Leadership - developing people who can lead the business, people who have resources, initiative, who can apply the knowledge and experienced gained in building and managing teams, people who can achieve results.

“In Galati, people represent the most valuable resource of the Company. By way of per-formance, education, attitude and experience accumulated in time, our people build sustain-able business value. The key to success lies in the value of our people and all actions in this regard are shaped so they can be proud to support this busi-ness and be part of our TEAM. We need to become more than competitive, on the one hand at the international level and on the local markets that we pro-vide for. We need to become an “employer of choice”. This means rebranding ourselves, namely to change the company image in Romania, so as to have employees that want to work in Galati”, Mihaela Craciun, Head of Human Resources.

ArcelorMittal `s Values Wordwide


Training sessionsIn 2013 ArcelorMittal Galati offered:

190 Training programs

134 Internal training programs

56 External training programs

21, 061 participants at our training programs

193, 000 hours spent by our employees “in the classroom”

Learning Week

200 people were involved in this event, organized for the first time in our unit. They participated at face-to-face trainings, coaching sessions, workshops, on-line simulations: the first time when we did these actions – all events were premiered;Celebrated at Corporate level, Learning Week in Galati was also an opportunity for all our employees to reflect on learning, discover different ways of learning and how these can influence career development. On this ocassion, Romania’s Training Center launched a new way of studying: implementing an e-learning module, translated in Romanian and facilitated in the classroom.Promoting this new way of learning came as a necessity due to the fact that the rich online resources provided by the ArcelorMittal University are difficult to explore in individual study.

ACT2 programme was the winner of “The most valuable training and professional development project” at the “HR Excellence Awards” gala, held in Bucharest. The event brought together over 250 partici-pants, human resource professionals, business leaders, C.E.O.s and represen-tatives of the leading 150 companies in Romania. It was the fifth edition organized by HR Club Romania, Human Resources Professionals Association in our country, with the mission to encourage the develop-ment of human resources by supporting and promoting best practices.Although it is the first year when we partici-pate in over 70 projects submitted, ArcelorMittal Galati was noted by the jury (consisting of the heads of prestigious companies) as the company with the most nominations, with projects such as Intern-ship 2012, ArcelorMittal Galati ACT2 and Transformation through People.“The award for ACT2 means a national recognition for the ArcelorMittal Galati team’s efforts to sustain, strengthen and actively participate in the strategic transfor-mation program ARC 2015+”, pointed out Mihaela Craciun, Head of Human Resources at ArcelorMittal Galati.

National Recognition for ACT 2 Ideas of Progress

Since 2012, ArcelorMittal Galati engaged its employees using different channels and activities. One of the main ways of doing it was the “Ideas of progress” initiative. Employees who proposed and implemented the best “Ideas of progress” were rewarded with medals and prizes in money amount-ing to 310,000 euro, at the second annual ceremony organized at ArcelorMittal Galati Club.

79%Rewarded ideas

1,376Number of ideas

1,703Rewarded employees


Our unit started the collaboration with ArcelorMittal Finance Academy

In 2013, ArcelorMittal Galati organized the first training sessions for our employees in the field of Finance in collaboration with ArcelorMittal University – Finance Academy. For three days, 52 of our colleagues from ArcelorMittal Galati, Iasi Roman, Hunedoara and Skopje, benefited from training in: Finance for Non-finance, the Management and Accountancy of Cost and Working Capital Management during a session held at the ArcelorMittal Club.The initiator and main host of the event was Arun Annachhatre, Chief Financial Officer, who highlighted the importance of finance management in our unit during these difficult times, joined by Shrinivas Tapadia,trainer on behalf of the University, who has a Master in Business Administration, as well as a PhD inFinance. In order to increase the applicability of the information shared during the training session, managers of the

Finance Department - were also present at the event.Our goal is to continue the collaboration with the ArcelorMittal University and to have in the near future the opportunity to develop new subjects of interest in order to increase our level of understanding and ourperformance in the field of finance.

Human Resources Thematic Session

One of the events included in the Internship program rolled out by ArcelorMittal Galati in 2013 gathered about 70 students from various fields of specialization and their professors at our club in the city, where they enjoyed a day in the company of our Human Resources specialists.The thematic session, whose theme was “Transforming your tomorrow”, aimed at offering the studentsseveral tips on how to build their future career, gave the participants the opportunity to learn more about

topics of high interest to them, such as: the needs of current employers, preparing for an interview, personal and professional growth.At the beginning of the event, Bruno Ribo, C.E.O. of the plant, talked to the students about the need for adaptability and continuous improvement in an ever-changing economic environment, while sharing his own personal experience. His final advice to the students was put into a few simple, but powerful words: “Be your-self! Set a goal and then put all your efforts into achieving that goal and last, but not least, don’t compare yourself to others; in-stead, try to be the best version of yourself!”Throughout the day, the students partici-pated at various workshops and games, having the chance to test a few of their soft skills, such as ability to work in a team, spirit of innovation and communication skills. Our Human Resources team offered their guidance and encouraged them to discuss freely about their dreams and their expecta-tions as future employees.

Open Doors Day

1,300 participants (employees, their families and local authorities)

2013 was for the first time in the history of the Steel Plant when the members of our families had the opportunity to visit our working places. The event provided us with the possibility to present to our relatives the steel making process, its industrial and household applications, the equipment we are operating with, the product range, our efforts in protecting the environment and also our commitment in terms of Health and Safety. Never has the atmosphere been livelier in front of the Tower building in our Steel Plant! Nor the production facili-ties - unknown for our families so far - have received more curious guests! Our children had the opportunity to visit some production sectors, ranging from the Sinter Plant, the Blast Furnace, and the Steel Melting Shop and up to the rolling mills. Although it was a first time experience in Galati, this event is actually natural for the ArcelorMittal culture, many Western Units having this practice, which we are willing to adopt, as any other good practice. More than 1,300 employees, their families and a number of local authori-ties spent the day of June 8th, taking part in the first edition of The Open Doors Day. All of them received gifts at the checkout point. A large team of staff and volunteers contributed to the success of this first event about to become a tradition in the Plant.

Following the ArcelorMittal Group’s initiative regarding the gender diversity within the organization, the Human Resources Depart-ment started up a project addressed to all women in our unit. A first stage in this program was about providing our women colleagues the oppor-tunity to point out the major key-issues they are confronting with in their careers and also possible areas of improvement in their activity. These issues were debated during a workshop that gathered more than 60 of our colleagues from the entire platform. This one day session was focused on fin-ding solutions for the four major obstacles encountered by women in their professional life, identified with the help of a question-naire carried among ArcelorMittal female employees. A second event gathered more than 130 women in the Steel Plant in a face to face meeting with the C.E.O. as the year turned to a close. The women had the opportunity to find out the annual action plan of the company on the support they are given by the senior management in order to achieve a balance between their professional and the private lives and promote as much as possible the presence of women in our unit.

Gender Diversity Programme


E-card Contest for our Children

The early June is the equivalent of ripe cherries and lots of surprises for the children of Galati, Romania. On the first day of summer, more than 4,500 children, whose parents work for ArcelorMittal Galati, were offered gifts on the part of our Company, consisting of large packs of books, carefully selected for everyone’s age.During the same week, dozens of other tots and teenagers were invited at ArcelorMittal club in town. Our Company honored both the artistic talent of our children and the excellence in various subjects of study of the best students of Galati County.More than 70 tiny artists, from among our colleagues’ kids, competed in the art of drawing in a competition organized for four age groups, each of them rendering their original vision on their own family. All par-ticipants were rewarded, but four of them, namely Vlad Toma, Ionut Slabu, Valentin Cocâi and Cosmin Dumitrescu, ranked first, and two others, Ana-Maria Iliescu and Alin Danila, distinguished themselves for the special prize. Various competitions organized on the occasion of Children’s Day themes have become a tradition in the recent years when the organizers from the Human Resources Department have tried to attract more and more contestants and come with ever unexpected surprises for our little ones.

In order to emphasize our corporate citizen-ship and promote cultural diversity and trust among our communities, the Company launched a traditional drawing contest for the employees’ children and also for the children who belong to a project fostered by the ArcelorMittal Foundation. The participants were 6 – 14 years old, the theme in 2013 being “Giving Makes the World a Better Place”. There were winners in 30 countries where ArcelorMittal is present, were available on the intranet and submit-ted to an on-line voting by all ArcelorMittal employees all over the world, starting on November 19th. The first 3 drawings to gather most of our votes were rewarded 1000, 750 and respectively 500 dollars and were available on internet/intranet, to be used as greeting cards for the New Year’s. The three E-Cards global winners were printed and used as ArcelorMittal Corporate New Year Cards by the Senior Management.

In June, Celebrating Tomorrow

Making steel more sustainable


Heavy Plates

- Thermo mechanically rolled, grades: from S355MC, M, ML (S 420, S460, S500) to S500 MC, M, ML;- X46 and X60, annealed, i.e. an old rolling method, required currently again by our customers; - for pipes: GOST, a Russian standard quality grade: K42, K50, K52 and K55; - shipbuilding steel grades tested with Z35 feature, i.e. traction tests on the plate thick-ness.

Coils

- Thermo mechanically rolled sheets: S315, S355 MC, S420 MC for special purpose and industrial pipes - S235JOV steel with high corrosion resis-tance (bridges, industrial profiles, etc.) - DC03 EK, a non-standard grade for enam-eling.

Our Product Mix

Relationships with customers are reinforced through different engagement activities, including shop floor visits. In 2013, we welcomed customers from:

· Cimtas Turkey

· Borçelik Turkey

· VARD

· ThyssenKrupp

· Koyo Romania

· Astra, the wagons producer

· Siemens Wind Power

· Petrochemical Worldwide Company

· Corinth Pipeworks

· Maschio Gaspardo

· Titan Heavy Machinery Company

· Shipbuilding Classification Companies

Our customer appreciated our teams’ efforts and skills with view to achieving high perfor-mance in quality.All our guests noted the visible improvement in our maintenance and the efforts made in reducing quality defects. Together with our guests, we agreed that such meetings are useful and must become a habitual practice.

6% of our products are novelties

Industries We Deliver to

Nowadays, when the heavy plate market is volatile and the forecast of the medium and long term evolution of sales is difficult, when the largest part of our customers are placing orders for tailored products, our specialists find innovative solutions so as to increase the volume of sales and the customers satisfaction. We deliver heavy plates for the renewable energy industry, namely towers for the wind mills and also beveled plates. Among our customers in this area there are: Reuther Germany, Gestamp Spain, Siemens Germany, Cimtas Turkey. The heavy plates produced in Galati Plant goes also to civil and industrial construction field, for instance: railway and road bridges. Our Turkish customers are working currently for an important project in cooperation with the Turkish Government, namely the Izmit Bay bridge, in the Eastern edge of Marmara Sea. Boilers and pressure vessels are other destinations for our heavy plates.

We have achieved TUV certification on grades: P275, P355N, NH, GH,NL, NL2 and, for the Americam market, AAR certifica-tion (Association of American Railroads) for TC128 Grade B .


Better productivity, lower costs, guaranteed quality and environmental protection. These are as many reasons why Blast Furnace slag has become an essential construction material. In the context of sustainable development and waste recovery under controlled environmental conditions, the use of blast furnace slag is now extremely topical.ArcelorMittal Galati has a clear proce-dure for the production control of the blast furnace slag aggregate and a quality plan to meet the needs of its customers and to comply with the standards.With our own testing laboratory, certified by RENAR, all the characteristics of the aggregates are tested in accordance with the current standards. The concrete storage areas ensure the conditions so that the slag does not lose its qualities and it is not polluted. The characteristics of the blast furnace slag aggregates lead to their successful use in construction materials, the main consumer of large quantities being the road sector. Using these aggregates leads to a reduction of the environmental impact by way of: de-creasing the need of gritty classic materials, extracted from the lithosphere, which brings about limiting the environmental degrada-tion, a decreased volume of the slag dump, which in turn leads to a reduction of the impact on the natural balance and on the landscape.

Aggregates Producer

Our production capacity: 3,000 tons of slag per day, unique in Romania.

Identified as a crucial aspect in our activity, maintenance is now part of our top priorities. This is why our unit organized a Maintenance Seminar. This event’s purpose was to raise awareness among our colleagues with view to impact of mainte-nance on the profitability and sustainability of our operations. During this one day seminar, participants had the opportunity to share their experience in the maintenance field, to tackle problems identified on the shop floors and discuss the recent improvements in their areas.

Seminar on Maintenance Important Breakthrough on Metal Yield

The improvement trend started at 85.7% in May 2012and reached

87.43% in February 2013.

A record achievement has been reached by an extensive transversal team in terms of cost efficiency and quality. As a conse-quence, the metal yield obtained currently at the Heavy Plate Mill is the best ever. The Metal Yield Improvement Project has been a constant preoccupation of the H.P.M. team since the commissioning of this production capacity in 1979.The start up of the project has been determined also by the economic downturn occurred at the end of 2008, when the share of the added value products decreased dramatically, requiring that “savings” oriented solutions should be found. Along with the Heavy Plates Mill team, the Programming, I.T., Quality, Spare Parts De-partments and the Steel Melting Shop con-tributed to the success of this huge project.


Contractor’s day – getting closer to our partners

Meeting with our Maintenance Contractors

Already reaching its third edition, the annual event that reunites representatives of the companies rolling our activities on the Steel Plant, was largely attended at our club in town.ArcelorMittal Galati CEO presented the current economic status of our unit and asked the contractors to join our efforts to regain profitability: “Our goal is to continue making steel at Galati, in an integrated, agile, flexible, bench-mark company. You are part of our transformation”.The downtime and the inefficiency in exploi-tation of resources were the most debated issues in the relationship with contractors,which is why they have been challenged to raise responsibility among their employees on the correct use of the equipment, to ex-tend the tool time, associated with a concern for continuous improvement of performance and the reduction of the total cost of owner-ship.Health and Safety, the respect for the environment, the constant performance as well as the quality of the performed works were the criteria for assessing the performance of our contractors, the most outstanding of these being awarded by our Head of Purchasing.

2013 was the first year when Central Maintenance and Purchasing Departments organized a meeting with the contractors providing maintenance works. Our partners were encouraged to talk about the difficul-ties they face in the Plant, ideas of improving their work and the quality of their collabora-tion with the unit.The Head of the Central Maintenance Department spoke to our contractors about:

• the need for a strong commitment concerning both our employees and our partners,

• the problems that can occur from using the wrong tools and presented a series of standard and performing tools,

• making the maintenance activities safer and of better quality,

• our future plans in what regards the de-velopment of best practices in maintenance,

• productivity, the management presented figures regarding the Tool Time.One of the main actions to be taken in this direction is using the “cause-effect” diagram designed to identify the root cause for any poor execution.

Fady Azzi – Head of Central Maintenance Anca Toader – Head of Purchasing

Electric Club Reliability Club

The “Reliability Engineers Network” came to life at the beginning of March 2013. The purpose of setting up this network is to develop the staff occupying the position of Reliability Engineers in the departments, as well as to implement the concept of reliability in ArcelorMittal Galati.The objectives of this group have been defined taking into account the necessities for development and support

of the maintenance activities in all depart-ments, such as: implementing good prac-tices, developing the skills of the specialists with view to improving the equipments reli-ability, carrying out “Standard State” projects, promoting root-cause analysis methodology and specific training in the departments.

A new transversal project, started in 2013,refers to the establishment of specialized clubs in the maintenance field within ArcelorMittal Galati. The purpose of these clubs has to do with the crystallization of cores of specialists at the unit level, with a potential in the analysis of major events, in identifying solutions to transversal issues, to provide support in analyzing the causes of major defects occurred inside the departments and to train the execution staff, as an entry point for new methods and methodologies.The initial objective of this club consists in transversal work development, defining and sharing best practices among various departments and filling the lack of specialists from certain sec-tors.The group has already identified 40 improvement ideas, prioritizing them and the club members work on a weekly basis in dedicated teams and monthly as a whole. The ultimate goal of the club is implement-ing the maintenance good practices and developing the staff skills with view to improving the equipment reliability and reducing the maintenance costs.


ACT3 ( Act Constantly for Transformation)

In accordance with the current context and the business priorities of ArcelorMittal Galati, the Human Resources Department and Quality Mindset Change Department together with the Management Committee members developed the concept of training for ACT3 program.As all the other waves of ACT program, ACT3 is complementary to the transforma-tion program ARC2015+, focusing on quality tools, statistics and prevention. It combines the theoretical concepts regarding the analysis tools with practical applications and examples from the Plant, leading to a deeper understanding of applicability and tools utility.

“You are part of a transformation process, perhaps the most ambitious one in Romania. We live in a competitive world where we cannot manage without appro-priate tools and methodology. The projects are really significant and I could see a mass phenomenon in the Rolling Mills. You have enough challenges ahead and all you need to do is to apply what you have learned”, Emil Rau, COO of the Rolling Mills area, said to the employees attending the follow-up sessions.

340 employees trained during 7,500 hours, with 60 projects generated.

Emil Rau – Chief Operations Officer Rolling Mills ArcelorMittal Galati

Environment


Since 2007, when Romania joined the Euro-pean Union, ArcelorMittal Galati has been participating as operator in the European Union Emission Trading Scheme (EU-ETS).This scheme is a tool aiming to promote the reduction of greenhouse gases emissions at the European Union level, being based on “cap and trade” principle used under the frame of the EU policy on climate change, not being a mechanism provided by the

Kyoto Protocol. A cap is set on the total amount of greenhouse gases that can be emitted by all operators.

CO2 Emissions per Ton of Steel Produced

Evolution of CO2 emissions factor in 2008 - 2013

The above diagram presents the evolution of ArcelorMittal Galati CO2 emission factor reported to the liquid steel production during 2008-2013. The decreasing trend of the CO2 emission factor is revealed during 2010-2013 period.Implementation of Blast Furnace 5 modernization starting from 2012 and “Energy Saving” projects allowed the obtaining of ambitious carbon footprint reduction goals. In 2013, the emission factor fell below the baseline of 2 tCO2/t OL, reaching an annual 2013 average of 1,997 t CO2/t OL. These results are due to ArcelorMittal Galati reduction of its con-sumption intensity of materials with high carbon content, such as coke and coal.This project moved ArcelorMittal Galati forward to reach ambitious goals into reducing its carbon footprint by 15%. In 2013, due to improvements of BF 5,

the CO2 emissions saving was 244 kilograms per ton of liquid steel, meaning 465,000 tons of CO2 in 2013. This is equivalent with replacing almost 180,000 cars using fossil fuels - and observ-ing the E.U. norms - with electrical cars. This equals the fleet of the cars from Galati County and the nearby counties! Moreover, the achievements were reached under mar-ket constrains, having, last year, a produc-tion of 1.6 million tons of hot metal.The project improved the overall CO2 emis-sions due to reduction of consumptions rates of the high carbon content materials: coals, imported coke, and natural gas. The CO2 emission factor of the site decreased below 2 tons of CO2 per ton of liquid steel (1.997 in 2013 and 2.178 in 2012).

2012 – 2,178 tonnes CO2 per ton of liquid steel

2013 – 1,997 tonnes CO2 per ton of liquid steel

Vespasian Popescu – Head of Environmental Protection

Dust Emissions

According to Romanian and European legis-lation, the limit allowed for the daily average for PM10 emissions is 50 μ/Nm3 and the allowed limit for annual average is 40 μ/Nm3. Analyzing the above results, it is found that for 2013, the monthly averages of PM10 were kept under daily limit, but the annual average is still above the ELV, although there has been a systematic decrease from year to year. The level of PM10 particles in ArcelorMittal is influenced mainly by the industrial activity, being favored by meteorological conditions (wind direction and speed, air humidity). Also, other factor which influences the level of emissions is auto transport.

¤ 8,651,598 Euro were spent in 2013 on envi-ronmental protection projects.

* The PM-10 standard includes particles with a diameter of 10 micro or less that are likely responsible for adverse health effects

because of their ability to reach the lower regions of the respiratory tract.


Water Consumption

In 2013, we continued the project started in 2010 to reduce the water consumption (m3 of water in take). The steps that have been covered in order to reach our target consisted of:

• Identifying the sources of water losses;

• Identifying the monitoring points;

• Improving the technical condition of equipment and installations;

• Reducing the water losses in the system;

• Optimizing the water consumption;

The quality of waste water was improved as a result of “Malina North” project imple-mentation, by which the concentration of suspended solids introduced into the calculation is significantly lower than prior to this project.Malina Pond project, approved by the Na-tional Company of Romanian Waters, com-prising 4 stages, was started in 2011 and is due to be completed by the end of 2014. The scope of the project was operating in safe conditions Malina Pond: improvement of the dikes, protecting the pond against the flooding, compliance with the water law and improvement of waste water quality discharged into Siret River.The stage rolled out in 2013 is aimed at im-proving the quality of the discharged waters in terms of solid suspensions reduction to 60 mg/litre and other indicators such as: COD (chemichal oxygen demand) and pH. The technological pond Malina gathers 80% of the waste waters in the Plant, namely the collecting channels coming from the Steel Melting Shop and Rolling Mills.

Water consumption of ArcelorMittal Galati was reduced two times in 2013, as compared to 2009

The closure of the industrial non-hazardous waste storage - slag dump in July 2009, im-posed arranging a temporary storage area for non-hazardous waste in accordance with legal requirements. This new approach to waste management in ArcelorMittal Galati, managed by an external company, led to recovery through recycling of a total quantity of ≈ 929 000 tones of non-hazard-ous waste.In the temporary storage of non-hazardous waste named „Valea Lupu-lui”, activities such as: collecting, selecting, processing,recovering, recycling, tempo-rary storage and selling of non-hazardous waste generated in ArcelorMittal Galati are performed. “Valea Lupului” is the first good practice of recycling implemented in Galati.

Non-hazardous temporary waste storage “Valea Lupului”.

The deposit has been established in 1968 and over the years has developed and reached an area of approx. 111 ha and a quantity of stored waste (blast furnace slag, ironworks slag, refractory materials, various technological waste, etc.) of about 60 mil-lion tonnes. Since 2009, the storage activity on the slag dump has been stopped.After suspension of storage activity, our company began operating the landfill by capitalizing the slag dump waste as per a project pre-pared by a specialized company. Arcelor-Mittal Galati has also been developing ways to create value for slag by investigating opportunities to use slag in road construc-tion. This contributes to the efforts of limiting the company’s CO2 footprint and improving the waste recovery. Exploitation of the slag dump has double benefit: for ArcelorMittal Galati - scrap recovery, and for community - large volume of material for infrastructure.

Slag dump

Total waste received – 281,822.410 tonnes Total waste recycled / recovered – 268,818.085 tonnes Waste in stock for recycling / recovery – 13,004.325 tonnes Waste for elimination – 0 tonnes Overall ArcelorMittal Galati savings 0,4 M Euro

External recovery of ArcelorMittal Galati waste in 2013 was increased by 37.6% compared to 2012

The AGORA project is aimed at increasing the recycling of certain categories of waste / by-products with high iron content in order to reintroduce them into the technological process, replacing some of the raw materi-als used in sintering.

AGORA


Energize

Launched in October 2012 in Galati, Energize project had significant progress. . The objective of the project - which will be rolled out in all Flat Carbon Europe units - is to identify the potential for energy optimiza-tion and get substantial savings over the next four years. In ArcelorMittal Galati, the present methodology was implemented at the Finishing Line and Heavy Plate Mill 2, while another transversal team approached the drinking water consumption and over-heated water issues and in Steel Plant and Hot Strip Mill the performance management with energy indicators was tackled.

Some of the energy efficiency identified ideas have already been implemented, such as steam distribution network reconfigura-tion at Finishing, reducing false air at Sinter Machine no. 5. Other ideas are in progress and will be implemented in 2014-2016, all helping to achieve the target of 15% reduc-tion in energy costs. An awareness campaign was also launched. Its purpose is to make known the impact of all forms of energy, not only on consumption but also on the environment.

„Let’s do it, Romania!” - Cleaning the Country in One Day!

Following the example of other European countries, we showed that we care about the environment we live in and - since 2010 – we have made people accountable and did something to change the face of our surroundings. The Environmental Protec-tion Department continued to be in 2013 the promoter of this action within the big team of ArcelorMittal Galati.Volunteers from our company, along with

their families, took part in “Let’s Do It, Romania!” project and collected garbage and wastes from around the town. Our company supported the initiative with vari-ous materials and along with the initiator of this project in Galati County, the NGO “S.O.S. Pro-Nature” offered transportation for all Galati volunteers and “Let’s Do It, Romania!” T-shirts.

Stakeholders Meeting

In order to promote proactive and transpar-ent engagement on topics that are impor-tant to our stakeholders, ArcelorMittal Galati holds twice a year, stakeholder engagement meetings, inviting a wide range of internal and external stakeholders. The way the company manages environmental matters was among the priority issues raised by stakeholders.

“ArcelorMittal Galati Green Line” was also initiated to provide employees and contractors with a dedicated line for reporting environmental emergencies.

0733 180 98872 10 48

In 2013, such meetings were held in July and December on the following topics:

• Sustainability in environmental perfor-mance - water management, demolition activities;

• Representative environmental projects, ArcelorMittal Galati and community.

Enriching our Communities


Bridge Towards Our Community

Besides the social and economic impacts of our business, we aim to make a positive contribution to the social development of our community. We believe that education is the key tool for individual and community development: a good education equips people to carve out a better life for themselves and to contribute to collective social change. Access to healthcare is a fundamental entitlement of every individual. One of our priorities is to safeguard the health of the community where we work. Apart from our contribution to the communi-ties we are part of, ArcelorMittal and its flag-ship unit in Romania, ArcelorMittal Galati, remains an economic pillar for the national industry and economy. With 4 production units: Galati (flat), Hunedoara (long), Iasi and Roman (tubes and pipes), and its functional services units, ArcelorMittal employs 15,000 people, including contractors. The total indirect related jobs linked with our operations are 60,000.

¤ 47,189.300were paid to the state budget, social insurances and the local budget in 2013

We are also contributing to Romania’s export shipping abroad more than 70% of our output. Our Romanian Units remains one of the biggest contributors for the both local and national public budgets, fuelling important projects for the communities and for Romania. ArcelorMittal Galati remains one of the biggest industrial producers in Romania: the 10th company by turn-over, an active mem-ber of CONPIROM and ABIEC associations. This is an important element as, in Romania, the intensive energy industries contribute 32.5% of the GDP.

All the Romanian Units of ArcelorMittal have faced since 2008 a severe and unprecedent drop in production. In response to this, the company applied the Transformation Programme, implementing measures to adapt the processes and industrial footprint for the current economic paradigm, much different from the one before the crisis. All the steps taken (including hard decisions, with social impact) envisaged a single goal: to keep Romania on the map of the steel producing countries.

Health

ArcelorMittal Galati donates medical equipment to Galati Emergency County Hospital

ArcelorMittal Galati continues to support the “St. Andrew” Galati Emergency County Hospital by donating state-of-the-art medi-cal equipment for three medical wards – anesthetics and intensive care, burns and neurosurgery, following specific requests from the hospital.As part of the donation, the hospital received four vital signs monitors, for the anesthetics and intensive care ward. The burns ward re-ceived a skin graft mesh for skin transplants, a Braun motor with chargeable cells for spe-cialized surgical interventions and air con-ditioning for half of the unit, while the other half will receive air conditioning equipments next year. The neurosurgery ward received special medical gear for surgery and 10 medical wheelchairs. For some equipment, specialized training sessions for staff will be organized.“The equipment donated by ArcelorMittal Galati is closing critical gaps in the smooth running of the hospital”, said Dr. Mihaela Debita, manager of St. Andrew Galati Emergency County Hospital. “We want to salute the decision of the com-pany to buy this equipment and to donate it to us and we hope this good cooperation will continue in 2014.” In 2014, as part of our long-term commit-ment to the local community, we will con-tinue and develop this type of partnership as part of our social responsibility program, focused on health and education.

ArcelorMittal Galati supports SMURD Galati with complete working equipment

ArcelorMittal Galati supports the Mobile Emergency Service & Reanimation (SMURD) Galati with all necessary best quality work-ing wear equipment that is necessary in their day-to-day activity for its 40 paramed-ics, medical assistants, ambulance workers and drivers. “We have a deep appreciation for the pro-fessionalism, hard work and determination of all the people working for SMURD Galati. Our action represents only a small token of our gratitude”, says Bruno Ribo, C.E.O. ArcelorMittal Galati. Dr. Angel Trifan, the Head of SMURD Galati said: “We welcome ArcelorMittal Galati initiative and we hope we will have a long-term partnership with the Company, in the best interest of our community”.


Launched in 2012, the Internship program is designed for last year students and recently graduated specialists and was developed on four major directions: thematic sessions, short practical stages, tours of the plant and a Summer School. Internship represents a bridge between the university and the future career of the students, and not only helps the students in their career, but also in plan-ning their studies. This is why our Company decided to implement the Internship Programme. The experience they gain during this internship stage indicates how they should structure their future studies, particularly when it comes to deciding what aspects they should focus on. It will intro-duce them to potential future work envi-ronments and they will be able to decide whether these meet their career wishes and interests. They can also acquire important supplementary skills during the internship and make contact with potential future employers. The most complex part of the Internship Program is the Summer School, which gathered last year 28 students. They spent two months in the Plant working side by side with their mentors and were involved in various projects meant to add value to our daily activity. During their experience in our company, the interns also had the chance to interact with our managers and special-ists. Besides getting familiar with the fields of activity, with the specific rules and the company policies, facilitated by their men-tors, the 28 students had the opportunity to participate in training on various topics,

such as time management, communication skills, presentation techniques or recruit-ment, which they found useful for their future career. At the end of the Summer School the interns presented the projects they worked on, summing up the results of their coop-eration with our specialists from different areas of the Plant and in the end they all were awarded during the closing ceremony, attended by members of the Management Committee and teachers. They were the second batch to graduate ArcelorMittal Galati Summer School.

ArcelorMittal Galati Internship Programme

Education

The European educational programme “Social Enterprise”, focused on developing entrepreneurial abilities and carried out by Junior Achievement Romania, in partnership with ArcelorMittal Foundation, was launched on October 18th, at the National College Vasile Alecsandri in Galati. The event brought together more than 150 students, their teachers, officials of ArcelorMittal, the County School Inspectorate, the high school management board and representatives of Junior Achievement Romania to discuss about what social entrepreneurship means. The meeting ended up in a workshop during which teams of students submitted social business related ideas that can solve the community problems of Galati County and the best 10 ideas were awarded.

Junior Achievement and ArcelorMittal Foundation help high school pupils identifying feasible solutions for the commu-nity in Galati

Rewarding excellence

Enhancing the quality of education

More than 60 students from across the county, with remarkable results in national competitions in all disciplines, received a recognition for their performance. It is for the seventh year that our company has rewarded the Olympic winners in national and international contests to stimulate excel-lence. “We always make a promise: that of transforming tomorrow. Our presence here, recognizing your worth is a guarantee that we like to invest in our future: that means you!”, addressed Mihaela Craciun, our Head of Human Resources, the students attending the awards, accompanied by their teachers and parents.

Also, in 2013, two kindergartens where many of ArcelorMittal Galati employees chil-dren go to, received at the end of 2013, do-nations consisting of computers, projectors, printers and educational software, meant to add value to the quality of teaching. Children from “Cristal” and “Puss in Boots” kindergar-tens welcomed the visit of our representa-tives. The donations for the two kindergar-tens were circumscribed to the program on Gender Diversity as a sign of support for mothers with preschool-aged children. The program was designed as a multiannual action, this initiative being a pilot.

Supporting students in the field of robotics

ArcelorMittal Galati supported the par-ticipation of three high-school students in the World Robot Olympiad, in Jakarta, Indonesia, in November 2013. The robot they designed underwent gradual changes and improvements by the addition of new features and optimization of the driving time, the whole concept being revamped every time, the tie-break in the competition being achieved by the speed. The World Robot Olympiad brings together young people from all over the world to develop their creativity, design & problem solving skills through challenging & educa-tional robot competitions and activities.

¤ 78,103 were invested in Founda-tion projects in 2013


Due to heavy rain many parts of South - Eastern Romania area were flooded in early September. The villages around our plant received some of the worst hit. 39,000 tones of slag from our steel plant were donated to 18 near-by villages to restore the roads and bridges after the severe flooding caused more than ¤1.6m damages to the infrastructure. More than 1,735 households were affected by the flooding and 6,901 people were evacuated.

Emergency aid for flood affected communities

Corporate Volunteering

A Busy Year for ArcelorMittal Galati Volunteers

2013 has been a year full of humanitar-ian actions, organised by ArcelorMittal Galati group of volunteers for their fellows in need. Starting from initiatives of support-ing poor families, baptizing orphans and up to collective approaches with numerous target-groups, solidarity was the ”drive” that animated the volunteers core working in the Steel Plant.

The year 2013 ended just as dynamically for the group of volunteers. They gathered more than 100 institutionalized children, disabled people and orphans in two events held by ArcelorMittal club in town around the holidays to provide them, with the help of our colleagues and the management unit, moments full of emotion, but also fulfilling wishes expressed in letters to Santa Claus.

Volunteering Day in figures

Number of beneficiaries:

564 Number of participants:

212 Number of volunteer hours during working time:

84

Transparent governance


Governmental representatives Visit the Steel Plant

We engage regularly with public authorities. Last year, Mr. Constantin Nita, Delegated Minister for Energy and Mr. Dan Nica, Minister of the Informational Society, visited ArcelorMittal Galati Plant and met our Chief Executive Officer and Country Manager.The management of ArcelorMittal Galati informed that, as a large consumer of energy, the Company is concerned by the landed price of energy as its real final invoice includes, on top of the price, all additional costs for: transportation and dis-tribution regulated tariffs, green certificates, cogeneration incentives, balancing costs and excises.

Mr. Lakshmi Mittal, Chairman and Chief Executive Officer of ArcelorMittal and ArcelorMittal Romanian management team met, in Bucharest, Mr. Victor Ponta, the Prime Minister of Romania and Mr. Traian Basescu, the President of Romania. The Romanian authorities were informed about the steel industry’s current situation and the challenges it faces, as well as the efforts being made by ArcelorMittal in Europe and in Romania particularly, to ensure the steel industry has a sustainable future.

Mr. Lakshmi Mittal meets Mr. Traian Basescu, President of Romania and Mr. Victor Ponta, Prime – Minister of Romania

ArcelorMittal expressed its hope that Roma-nia will remain attractive for foreign invest-ments and that the Romanian government will take the appropriate measures, such as ensuring competitive energy costs for the sustainability of Romania’s steel industry.Prime Minister Victor Ponta expressed the support of the Romanian Government for an efficient and long term activity of ArcelorMittal in Romania, as well as the interest of Romania to consolidate its competitive attributes regarding the foreign investments, particularly in the steel industry, states the Press Release of the Government. A similar position of support was received from the Presidency of Romania.

State authorities and local government engagement

Group Policies

Our governance framework underpins how our company is led, managed and struc-tured, from the composition of our board of directors, to the way we expect each employee to behave.We believe in open and visible governance, underpinned by a commitment to operating ethically and transparently. We have robust processes in place to ensure we identify and manage our risks, and understand the true impacts of both our operations and our supply chain. We also invest considerable time and resources in engaging with our stakeholdersOur commitments are to have group poli-cies and a code of business conduct that all employees understand and live by and to continuously improve and enhance our compliance program.

5,385 employees were trained during the year in the code of business conduct, anticor-ruption guidelines and compliance with human rights

Grievance mechanism

The purpose of a grievance mechanism is to demonstrate responsiveness to stake holder complaints.Direct channels of grievance are now de-signed for stakeholders such as: employees (for law and internal regulations violations), environment NGOs and public (for envi-ronmental topics), unions and employees representatives (for human resources and safety topics) and for mass media. All stakeholders are encouraged to sub mit written grievances and are reassured that written submissions will not be used in any way to intimidate those submitting the complaints.

A complaint/grievance should include the following: Surname, name, patronymic name of the complainant; Place of resi-dence; Concern of the complaint or griev-ance, proposal of solutions if any.Complaints in written form should be signed by the complainant (complainants) with statement of the date.Complaints executed with faults will be sent back to the complainant with relevant explanations within maximum 10 days from the date of receipt.

Grievance/complaint procedure

In compliance with the country law and ArcelorMittal Data protection Policy, the private data derived from the complaints shall not be disclosed without his/her consent as well as information on state secrets or other protected by law and other information derived from the complaints will not be disclosed if it infringes the rights and legitimates interests of the complaints.

ArcelorMittal Whistleblower

The claims to the Whistleblower line are analyzed and solved by the Internal Audit, a team of 12 internal auditors. This struc-ture performs audit engagements on all business processes (Procurement, Opera-tions, Human Resources, Financial, Payroll, Environment, Sales, Projects etc.).

7 complaints were received via Whistle-blower during 2013. One of the cases were conclusive and founded and the irregulari-ties were corrected. For the rest, opportuni-ties for improvement were identified.

Whistleblower

E-mail hotline [email protected] link https://arcelormittal.alertline.euLandline from inside the company 3248Landline from outside the company 00800.89.6794

Confidentiality


¤ 82.4 Million Investment in Revamping Blast Furnace no. 5

The project revamping of Blast Furnace no.5 was developed by an international Group team with specialists from Galati, Gent, Asturias, Fos-sur-Mer and other units. The objective of the investment was to contribute to the site variable costs reduction and to improve the environmental performance. The new Galati BF5 has now a 15 years life time.

Editorial Team

Bruno Ribo – Country HeadIonel Bors - Country ManagerDorian Dumitrescu – Country CommunicatorOana Lupu – Corporate Responsibility CoordinatorOana Vasile -Corporate Responsibility CoordinatorRaluca Lefter – Public Relations SpecialistTheodora Maria Gatin – Public Relations SpecialistLaurentiu Iordache – Photo and Layout


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