ArcelorMittal (MT) & Schneider Team Up on Low-Carbon Steel
ArcelorMittal MT and Schneider Electric, a prominent player in energy management and automation digital transformation, have announced a strategic partnership. Per this partnership, ArcelorMittal will supply Schneider Electric with XCarb recycled and renewably produced steel for the manufacturing of electrical cabinets and enclosures.
The XCarb recycled and renewably produced steel is manufactured at ArcelorMittal's facility in Sestao, Spain. It comprises a significant proportion of recycled steel processed in an electric arc furnace powered by 100% renewable electricity. This eco-friendly production process results in carbon dioxide emissions that are nearly 70% lower compared with conventional methods.
Schneider Electric will utilize ArcelorMittal's XCarb steel to produce the new PanelSeT SFN floor-standing enclosures designed to safeguard large electrical panels in industrial automation, power distribution and electronic applications. Given the demanding operational conditions these enclosures are designed for, the XCarb steel is further coated with Magnelis, a metallic coating that provides robust corrosion protection.
ArcelorMittal expressed pride in the partnership with Schneider Electric, emphasizing its role as a supplier to a company at the forefront of sustainability and CO2 emissions reduction in its value chain. The collaborative effort within the company contributed to the partnership’s success, resulting in the integration of XCarb recycled and renewably produced steel into a new, environmentally friendly product. ArcelorMittal Downstream Solutions is looking forward to future collaborations with Schneider Electric on similar projects, advancing its commitment to low carbon-emission solutions.
This partnership is the culmination of several months of technical collaboration and partnership between ArcelorMittal Steel Services Centre Europe and Schneider Electric. The focus was on identifying the optimal grade of steel and coating for the specific requirements of the project.
Shares of ArcelorMittal have lost 9.6% in the past year compared with a 17.8% rise of the industry.
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ArcelorMittal posted earnings of $1.10 per share in third-quarter 2023, down from $1.11 from the previous-year quarter’s levels. The figure beat the Zacks Consensus Estimate of $1.03. Total sales increased 12% to $16,616 million, missing the consensus estimate of $17,075.1 million. The downside was primarily caused by lower steel prices.
The company projects a 1-2% year-over-year rise in global steel consumption (excluding China) in 2023. ArcelorMittal maintains a positive outlook on steel demand over the medium to long term. Capital expenditures for 2023 are expected to be $4.5-$5 billion. Strategic projects are expected to generate an additional $1.3 billion in normalized EBITDA.
ArcelorMittal Price and Consensus
ArcelorMittal price-consensus-chart | ArcelorMittal Quote
Zacks Rank & Key Picks
ArcelorMittal currently carries a Zacks Rank #5 (Strong Sell).
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