LG adding NG HBI to blast furnaces, scrap to BOFs to reduce CO2 emissions, increase throughput, and lower costs. They are changing the steel making process at full-scale plant levels.
It is all about the chemistry!
From last part of earnings call:
“Lourenco Goncalves -- Chairman, President, and Chief Executive Officer
Yes. And I apologize to the ones in the call that we got through -- it's too much of nitty-gritty details of the chemistry. But at the end of the day, you guys are going to have to be prepared for that because when you talk about emissions, we are talking about chemistry. We're no longer talking about cost accounting.
We're no longer talking about the average price of HRC. You're going to have to -- the research analyst community, you will have to prepare yourselves to get this conversation to the next level because the phase of announcements and bombastic declarations and trademarks and things like that will pass. Because after you do a little bit of that, everybody, including the clients and yourselves, will say, OK, where is the beat? How many tons of this thing you are producing? Where is this steel going? Is this in the door of the Ford Explorer? I'm making this up. It's the first car model that came to my mind.
Or where is this being used and what for? So I'll tell you, we produce five million tons of steel to the car manufacturers. I would love to produce less because I still believe that's too much of automotive exposure, even though it's less than half of what I had when I only had A.K. Steel. So the biggest synergy -- nobody asked about synergies today, by the way.
The biggest synergy from the acquisition of both A.K. Steel and ArcelorMittal USA, Matt, was the fact that you could bring back technological sanity to this business. And we are also translating this technological sanity into much higher revenues, much higher profits, EBITDA margins that were unheard of before. By the way, I don't know if you guys noticed for the companies that reported so far, we reported the highest EBITDA margin among them all.”
