Florange case

European press event October 5 2015

Eric Niedziela, CEO Atlantique-Lorraine Cluster

Executive summary

• Agreement ratified with French government

30th November 2012

• Industrial footprint

• Investment program

• Social program

• Florange is now competitively integrated in the

ArcelorMittal Atlantique - Lorraine footprint.

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Good relationship with French

government

• Follow-up committee with French authority

representatives, Unions and AMAL CEO done on

regular basis managed by F. Marzorati ( who got

mandate from the French Prime Minister)

• Last Florange meeting was done in April 2015 with

plant visit focused on investments

• Special meetings have been done in Dunkirk (in

March 2015) and Basse Indre (in July 2015)

• Next Florange meeting is scheduled in November

the 20th.

2

• Last visit from the French President

François Hollande

Florange Plant Dunkerque Plant

Industrial footprint & results

3

2014 2013 2012 2011

2014 2013 2012 2011

2014 2013 2012 2011

HSM production

(kt)

Coupling production (mainly automotive)

(kt)

5-stands production (mainly packaging)

(kt)

• According to market demand two BFs were idled

• From an industrial point of view, the reorganization in Europe

helped to run full the 2 businesses of Florange, automotive

steel and steel for packaging

• Dunkerque and Florange work together on an integrated

basis

Blast

Furnaces

Blast

Furnaces

Steelshop Steelshop

Hot strip

mill

Hot strip

mill

Finishing

assets

Finishing

assets

Mothballed assets

new

Florange is competitively integrated

in the cluster footprint Dunquerke Florange

2,4 to 2,6 Mt of slabs

Coke blend from Dunquerke

700 kt of coke 7 Mt of slab capacity (6,6 Mt in 2014)

Delivery to Liege 1,4Mt, Florange 2,6

Mt and Dunkirk downstream 3 Mt

BF2 revamping in 2015 (investment of

92 M€)

The 3rd coking battery of Dunquerke

2,6 Mt downstream capacity

• Dunkirk is the terminal port for ArcelorMittal Atlantique-Lorraine raw material and

processes the same coal mix for its three coking batteries.

• The cluster, including Florange, is self sufficient in coke, and the quality of its homogenous

coke is a key factor for its blast furnace performance.

• Florange hot strip mill is as competitive as before, thanks to the coking gas availability.

• Special wagons fleet, for coke and for slabs, have been invested in to reduce transport

costs.

Investment program and results

5

• Committed to a 180M€ investment

plan between 2013 and 2017

• 168 M€ already allocated or done

(93%)

• The commitment will be kept and

investment will continue

• More than 50M€ invested in

production of automotive products,

mainly for Usibor® feasibility in

large width

• Around 40M€ invested to reach

sustainable profitability of the

packaging business

Florange investment plan is reality

6

2015

New laser welder

for the Coupling

2015: HSM

new motors Comité de Suivi visit 10 April 2015

2015

Gasholder

2015

5-stands hydraulic

screwdown

2012: Usibor®

large width

2015 Automation

of P&O entry

2015

Coke and Coal logistics

Direct shipments from Florange. 55%

for automotive, 60 % outside France

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1,8 Mt/y , half for end users , half for AMAL sites in order to be finished

Market Share

Automotive

55%

Packaging

16%

Industry 29%

20%

Deliveries per country

French

42%

28%

Germany

Italia

9% 2%

Chec Republic

Belgium 3%

Spain 4%

Sweden 2%

Others

(10%)

Social program and results

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• Of 629 employees affected by the mothballing of the liquid phase, all found a solution

• 256 employees have exercised their right to retirement

• 40 employees have chosen a solution out of Florange plant

• 333 employees have joined a new position in Florange plant

• Ambitious training program with 65,800 hours between 2013 and 2014 : around

200h/employee

• Recruitment of 44 people since 2014, and 21 still to do by the end of 2015.

New position

in Florange 53%

Out of Florange

6%

Retirement 41%

629 employee

solutions

Recruitment in Florange

21

2915

00

2015

50

2014 2012 2013

Done

To do

The Florange site contributes to the

local economy in Lorraine

• 1 188 kt of finished products shipped in 2014

• Employees: 2200

• A 180 M€ investment plan for the assets

• Main local customers served by the site of

Florange:

Eurostamp, Magna Lorraine, Gestamp, PSA

Tremery, Ford (Sarre-Louis), multiple German

subcontractors related to automotive industry…

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