ArcelorMittal S.A. (NYSE:MT) Q4 2022 Earnings Call Transcript

After the full ramp up should be generating about $250 million of contribution. So I think we are moving in the right direction there. In Calvert, we had to well also with the EAF. So expecting to €“ our expected completion date is end of the year, and then we will take it from there. And I think it works well. I mean, once we start the Arc Furn in Calvert then we should also be making progress with the ramp up of the hot strip mill in Mexico. So I think it’s a good balance. This last data today being transferred to Mexico, and be rolled and sold domestically in Mexico.

Philip Gibbs: Thank you, and just to follow up if I could. Any update on what’s your automotive customers are telling you? In Africa and Europe and in terms of how they expect the year to play out or anything there in terms of what you’re seeing along the order book, I appreciate it.

Aditya Mittal: Yeah. I think we saw the second half of last year ended relatively well, right. Especially in Europe, we had a very bad first half and things slow improved in the second half. So I think we ended the year with a little bit of an improvement in terms of production, and we had also similar production increases in after. And we believe that the demand for automotive, the backlog, the low level of investment should continue to support our production. So our expectations that we will continue to see progress and increase in production, automotive production 2023. So that should be and I think at this point in time, I think we are looking at something in the range of 5% increase for 2023.

Daniel Fairclough : Thanks Phil. We will move now to Andrew Jones at UBS. Go ahead Andrew.

Andrew Jones: Hi! Thanks for taking the questions. Just a follow-up on the detail plans. Can you just remind us of what you were expecting from those potential subsidiary. I think you took back as you €“ if you turn to the CapEx coming from, potentially coming from government sources, what exactly are you asking for? Can you remind us what the expected sort of CapEx would likely to be on those four DRI pumps and how much do you think should could come from government source?

Aditya Mittal: Sure, thank you. So we have not specifically broken down the CapEx for that project, but I would refer to our climate action report. In the climate action report, we talked about reducing our overall carbon footprint by 25% by 2030 and 35% in our European footprint. We outline the CapEx $10 billion to achieve that, and we suggested that governing grants would be approximately 50%, so we can do the net CapEx to us is about $5 billion. That remains the plan, and as these projects get approved and finalized in terms of engineering design and scope, and they are mature, we will be updating you on all the questions that you have asked.

Andrew Jones: Okay. Thank you.

Daniel Fairclough : Thanks Andy. So we will now move to our final question from Bastian, Deutsche Bank. Go ahead Bastian.

Bastian Synagowitz: Yeah, thanks Daniel and good afternoon all. My question is on the regulatory side and see them specifically, and I think we just had the results from the European parliament today, and could you please give us your view on the outcome on the trial, of the trial of meeting in December. Is this really good enough. What else needs to be addressed to shape the regulatory environment in a way that it makes it suitable for you to get the get the decarbonization done. Thank you.