mittal steel poland
DESCRIPTION
Mittal Steel Poland. Vijay Bhatnagar – Chief Executive Officer Conference of Nowy Przemysł Katowice, 21 November 2005. WHY POLAND. Biggest Area in CEE. High Growth. Poland - R&D centre „Silicon Valley” of CEE. Big and Young Population. Well-educated people. Skilled employees. - PowerPoint PPT PresentationTRANSCRIPT
Presentation for conference of Nowy Przemysł, 21.11.2005
Mittal Steel Poland
Vijay Bhatnagar – Chief Executive Officer
Conference of Nowy Przemysł Katowice, 21 November 2005
Presentation at conference of Nowy Przemsł, November 21, 2005 2
WHY POLAND
Poland - R&D centre„Silicon Valley” of CEE
Poland - centre of automotive sector suppliers
Poland - white goods centre
Poland - best agricultural products
Poland - health tourism destination
Poland - financial centre of the CEE
Industrial output - construction sector
High Growth
Big and Young Population
Skilled employees
Well-educated people
Biggest Area in CEE
Big internal market
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Foreign Investment in PolandPoland's entry into the European Union on 1 May 2004 was the culmination of wide-ranging political and economic transformation initiated in 1989. As a part of the Single European Market, Poland is still undergoing economic and social changes. With economic growth at 5.4% (2004), a young, well-educated and ambitious labour force, location at the very heart of the continent and low corporate income tax (19%), Poland has become an exciting place for investors from around the world Poles are one of Europe’s youngest societies (half of the nation is below the age of 35). The country also holds the second place in Europe in terms of the number of students.
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Foreign Investment in Poland
The inflow of foreign capital to Poland (mln USD)
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GDP Poland vs Chosen Countries (%) – 2006 f source: IMF
1,2%
2,0%
3,3%
3,6%
3,9%
4,2%
5,0%
5,4%
Germany Japan United States Hungary Czech Republic Poland Romania Ukraine
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Significant demand growth
0
2000
4000
6000
8000
10000
12000
14000
2003 2004 2005 2006 2007 2008 2009 2014
Polish steel demand, metric tonnes 000’s - 2003 – 2009 and 2014
CAGR 03 – 097%
Source: IISI 2004; EuroStrategy Consultants, 2005
CAGR 09 – 144.8%
Presentation at conference of Nowy Przemsł, November 21, 2005 7
Scope for growth
0
100
200
300
400
500
600
700
France Germany Spain Italy Poland
Apparent annual steel consumption – EU15 vs Poland – kg crude steel per capita
Source: IISI 2004
EU 15 Average404.4
SignificantGrowth potential
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Mittal Steel Poland –At a glance
• Represents about 70% of steel production capacity in Poland• Groups four of the largest Polish steel plants• Production capacity:
– 7.6m tonnes of crude steel– 6.6m tonnes of rolled products
• One of the largest steel products exporters in Poland, reaching over 60 foreign markets
• The largest coke producer within Mittal Steel operations and throughout CEE
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Domestic Market share Market share of Mittal Steel Poland in 2004
38%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Hot Rolled Cold Rolled Galvanized Coated Mittal SteelPoland
Wire Rod Sections Tubes Rails Engineering
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Mittal Steel Poland: The future
• Utilization of global sales and marketing network of Mittal
Steel
• Move product mix towards higher value products (for
automotive and white goods industry)
• Increasing domestic presence in Poland
• Coming close to end customers
• New investments to reduce cost, improve quality and
reliability, and to increase range of products
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Some Specific Investments
1. New Hot Strip Mill at Kraków2. New Slab Caster at Dąbrowa Górnicza3. New Colour Coating Line at Świętochłowice4. Wire Rod Mill modernization and expansion5. Modernization of Blast Furnace No.2 at Dąbrowa
Górnicza6. Pulverised Coal Injection System7. Laddle Furnace8. Hot Metal Desulpharization Station
Total investments in excess of PLN 2.5 Billion
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Conclusions
• Support of world-class R&D Centres in USA & France will play a key role
• Quick knowledge transfer (technical, operational and commercial) through Mittal Steel worldwide KMP will be its Cornerstone
• Proactively address issues of its Stakeholders
It is our plan to make the Polish operations to be
one of the most competitive and admired in
Europe