CNN Interview with Lakshmi Mittal The

Richest man in Europe

southasian
CNNs Exclusive Interview with Indian Steel Baron, Lakshmi Mittal. The interview was
aired on Wednesday, March 31, at 0030 hrs IST during the Quest Means Business show on
CNN International. Please find the full transcript below.
A fortune built on steel and reinforced by a blockbuster take over, the chief executive of
Arcelor Mittal, Lakshmi Mittal has been named the wealthiest Asian living in the U.K., in
2010.
Now, so far, so good. We are going to show you something of the range of Mr. Mittal. For
example: No. 8 on Forbes rich list in 2009. He is 58 years old. In Forbes top 10 every
year, since 2005. And set a trend of tycoons from developing world edging out Europeans. In
the 2010 list, Forbes ranking has him as No. 5. So, going up the list.
If you look at the range of industries and businesses, then you start to see perhaps just why
this is a powerhouse lister (ph). 2006 merger with Arcelor; he brought Arcelor and Mittal
together, they took the $27 billion deal. It was a hostile takeover and in doing so Arcelor
Mittal became the worlds largest steelmaker. It was audacious, but crucially of course, it was
successful.
If you want to know how much Mr. Mittal is worth, Forbes estimates it at $28.7 billion. A
dramatic increase on 2009, from $19 to $28, largely of course, as you will realize on the back
of the share prices of Arcelor Mittal, which rose sharply. The share cap of the company itself,
is $67 billion. Gives you an idea of why we are so interested in Mr. Mittal this evening.
The latest project bridges the worlds of industry and art. It is the result of a change and
chance meeting in Davos with Boris Johnson, the mayor of London, who of course, has been
on this program several times.
The story goes, he needed just 45 seconds to persuade Mr. Mittal to fund this steel sculpture;
45 seconds, it is going to be at the center of Londons Olympic park in 2012.
Speaking exclusively to CNN, Jim Boulden asked Lakshmi Mittal why he took on the
project.
LAKSHMI MITTAL, CEO, ARCELOR MITTAL: It will require a lot of steel and the good
thing is that most of the steel will come from various plants of Arcelor Mittal, and we have
been involved from the beginning when the sketches were drawn, and the specifications were
discussed. The good thing about the whole Arcelor Mittal is that it clearly shows that how
steel can be used in the most innovative way, requiring a very high degree of engineering
skill.

JIM BOULDEN, CNN INTL. CORRESPONDENT: Now, talking about steel, of course, we
have been reading lately that steel prices are on the way up and going to rise quite
significantly. How is that going to change your outlook for 2010 and what you will do as a
company?
MITTAL: Unfortunately, Euro metal prices have been going up very high. We know that for
the second quarter the prices of iron ore have gone up more than 100 percent, comparing with
last year. Even the core ingot (ph) have gone up by more than 70 percent. The prices of raw
materials are going up. This is an unfortunate part of this and that means cost of producing
steel is also going up.
BOULDEN: You have done a lot of cost-cutting in the last year or so, after 2008, 2009,
problems. Are you beginning to now invest more? I mean, is this going to be a dramatic
increase in investment for Arcelor Mittal?
MITTAL: A couple of things. One, that we did reduce a lot of cost. We reduced more than
$10 billion of fixed cost during this crisis. Now some of the costs are coming back because
we have started to increase volume. And I believe that we have emerged as a much leaner and
stronger company out of this crisis.
BOULDEN: How would you see 2010 as far as the economy? The increase in raw materials,
some people see as bullish. In other words, it means there is more demand that means the
economies are picking up. How would you describe?
MITTAL: I would describe that different economies have a different growth pattern.
Developing economies are coming back to normal prior to crisis. Europe and America will
not come to the same volume-like pre-crisis till 2012 or 2013, which means that we are not
producing at full capacities in our European plants and our American plants, in developing
economies we have started to produce closer to the capacity.
BOULDEN: Being here in the U.K., I must ask you, we are getting a few weeks away from
an election. How would you describe the economy here? How would you describe the lead
up? And are you worried about a hung parliament, as a businessman?
MITTAL: First of all, I am very impressed the way Gordon Brown has handled the crisis.
Britain, clearly, has come out of the crisis and we can see a lot of economic numbers, which
are showing positive signs. And I hope that this pattern continues and England can come out
of this crisis as strong.
BOULDEN: You dont see any way that London is losing its, sort of, center of investment.
There are all these issues of taxes and things?
MITTAL: Clearly, coming out of this crisis you need to look at the existing economic model
for the country. We need to look at more on the innovation, more on the research and
development, more on the engineering projects, and should take actions, or should take steps
to attract more tourists. Clearly, Arcelor Mittal is one of these actions.
BOULDEN: Exactly. And finally, does a hung parliament worry you as a businessman?

MITTAL: I do not want to comment on politics, but clearly if there is no clear ruler ship in
any country, for any corporate (ph), it worries.
QUEST: Lakshmi Mittal talking exclusively to CNN, to our Jim Boulden.
It is worth bearing in mind, Mittal is a major financial donor to Britains Labour Party, the
party of course that is in government.
America is making a bid for independence that is energy independence. The key to autonomy
lies all around the U.S. and well tell you why after many years President Obama wants to
drill.