ArcelorMittal appoints Aditya Mittal as chief executive

ArcelorMittal, one of the world’s biggest steel producers, has announced Aditya Mittal will replace his father Lakshmi as chief executive, with the founder taking up the position of executive chairman.

Aditya, previously president and chief executive of the company’s European business, described the change as “evolutionary not revolutionary” and highlighted his desire to decarbonise the group.

“The biggest challenge, but also the biggest opportunity, will be to demonstrate that steel can decarbonise,” he said on a call with reporters.

The elder Mittal said the new chief executive had “an unrivalled knowledge of the business and a keen sense of how the company must continue to transform to remain the world’s leading steel company”.

The comments came as the group announced a strong set of fourth-quarter results in its full-year statement for 2020.

Earnings before interest, taxes, depreciation and amortisation rose to $1.73bn in the final quarter ending on December 31, up from $925m during the same period in 2019.

Income before taxes and non-controlling interests increased to $1.65bn from a loss of $1.77bn during the same period in 2019, while net debt fell to $6.4bn from $7bn as of September last year.

Revenues for the fourth quarter dropped to $14.18bn from $15.51bn, which the company blamed on reduced global demand for steel caused by the coronavirus pandemic.

Total steel shipments in the last quarter of 2020 were 12.4 per cent lower than the same period in 2019, ArcelorMittal said, although this was offset by “a significant increase in global steel prices”.

Rating agency Fitch this month predicted prices would begin to fall in about March as idle steelmaking capacity ramped up to meet growing demand from the recovering car and white goods industries.

ArcelorMittal said it would pay a dividend of 30 cents a share and also announced a new $570m share buyback programme as the company forecast that steel demand was set to grow between 4.5 per cent and 5.5 per cent in 2021.

Lakshmi Mittal last month signalled his intent to rebalance the company away from established western markets towards developing regions, where it expects demand for steel will rise in line with improving living standards. 

ArcelorMittal sold its US division to Cleveland-Cliffs last year and said it planned to invest in markets including India, Mexico, Brazil and Liberia.

Shares in the company were flat on the day at €19.31 by lunchtime in London.