Luxembourg-based steel giant ArcelorMittal has announced a five-year strategic plan, the ArcelorMittal Action 2020 plan, which sets out improvement plans for each of its five business segments and aims to improve EBITDA and free cash flow performance.
ArcelorMittal stated that the Action 2020 plan targets to return EBITDA above $85/mt and also targets a further structural EBITDA improvement of approximately $3 billion. Upon full achievement of the plan, the company would expect to deliver free cash flow in excess of $2 billion annually.
Features of ArcelorMittal’s $3 billion share capital increase, expected to be completed in the first half of the current year, include capital increase by way of a rights issue for ArcelorMittal shareholders and the sale of its 35 percent stake in Spain-based automotive components producer Gestamp Automacion for approximately $1 billion. Accordingly, ArcelorMittal aims to reduce its net debt as of December 31, 2015 by $4 billion to below $12 billion.