ArcelorMittal Restructures Americas Division Into Four Areas
17 December 2015 - 3:55AM
Dow Jones News
By Alex MacDonald
LONDON--Steel company ArcelorMittal (MT) announced Wednesday a
new organizational structure for its Americas division following
the retirement of a senior executive as it seeks to extract more
profitability amid anemic steel prices.
The Luxembourg-based steelmaker, the world's largest by
shipments, said Lou Schorsch, head of ArcelorMittal Americas, will
retire at the end of February following 13 years with the
company.
This spurred the company to split the Americas unit into four
divisions as it seeks structural improvements in its business that
would allow it to boost earnings before interest, taxes,
depreciation and amortization or Ebtida by $1 billion in 2016.
North America will be split into two divisions: the USA division
and the NAFTA flat division. The former will be run by Jim Baske
while the latter will be run by John Brett, currently the executive
vice president finance, planning and procurement for ArcelorMittal
USA. The Nafta unit includes the company's operations in Mexico,
Canada and ArcelorMittal's stake in the Calvert, Alabama U.S.
flat-rolled steel plant but doesn't include any other U.S.
operations.
In South America, Jefferson de Paula and Benjamin Baptista will
continue as CEO of South America Long and CEO of South America
Flat, respectively.
All four will report directly to the group Chief Executive
Lakshmi Mittal.
"We believe this is the optimum structure to ensure each
division fully delivers on their business plans and puts in place
the necessary actions to respond to current market challenges and
capture market opportunities," said Mr. Mittal.
In addition, BC Agarwal, 64, group head of finance, will retire
at the end of February to be replaced by Genuino Christino, who
will report to ArcelorMittal's group Chief Financial Officer Aditya
Mittal.
Write to Alex MacDonald at alex.macdonald@wsj.com
(END) Dow Jones Newswires
December 16, 2015 11:40 ET (16:40 GMT)
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