Speaking at the annual Steel Success Strategies conference in New York, Mr Mittal said that steel is just as capable delivering the required weight savings to support new fuel efficiency legislation as other materials, and furthermore is more cost effective and environmentally friendly.

“Steel can provide all the weight reduction that auto producers require to satisfy the new fuel efficiency standards: for all types of vehicle” said Mr Mittal.  “Essentially we need to deliver a 25 percent reduction in the weight of structural components and closures, in other words the body-in-white.  Steel can already do this; and we can do it in a more cost effective and environmentally friendly manner than any other material.”

This is possible due to the company’s advanced and ultra advanced high strength steels developed in recent years.  “The steel industry is constantly in a state of technological revolution and our steels for the automotive sector are a perfect example of this,” said Mr Mittal.  “Steel’s strength has multiplied ten times over the past 20 years from 170 to 1700 megapascals.  These are phenomenal changes.  And we don’t know where the limit is in terms of product development.  Every day we open up new frontiers and do things which yesterday didn’t seem possible.  We understand there is a challenge from other materials, but no-one should doubt that steel remains the material of choice.”

Also in ArcelorMittal’s favour is its ability to provide solutions for its auto customers on a global basis, thanks to the company’s size and scope.  “Generally speaking the auto sector operates global platforms,” Mr Mittal said.  “This means they will increasingly make cars exactly the same way in China as they do in the United States.  Being able to work with the same supplier in different markets is therefore clearly an advantage as they are guaranteed exactly the same product, produced to exactly the same quality standards.”

On Sunday 15 June, ArcelorMittal celebrated the start of production at its newest plant producing high-strength automotive steel, a joint venture with Hunan Valin Iron & Steel Co called VAMA, in China.  “We are very excited about this plant,” said Mr Mittal, “because for the first time ArcelorMittal will be producing high-strength automotive steel in China, the world’s largest and fastest growing automotive market.  Our customers will be global brands – such as Volkswagen, GM, Ford, PSA, Daimler-Benz, Toyota, Honda, Renault, Fiat and Nissan – as well as leading domestic manufacturers.”

Mr Mittal also spoke about the global economy, saying, “the key difference between now and two years ago is that the developed markets are on a much stronger footing.  2014 is expected to be the strongest year for the OECD since 2010.  This is certainly positive for ArcelorMittal as two thirds of our shipments are in the developed world.”

He also called for greater investment in infrastructure, saying, “One opportunity that presents itself to support further growth in many countries is infrastructure investment.  Many developing economies are held back by poor infrastructure that makes the cost of managing logistical challenges too expensive to support business investment.  When interest rates are so low it makes sense to take advantage and address urgent infrastructure requirements that support growth.”