ArcelorMittal Europe – Flat Products

Online client newsletter | September 2016

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Excellence in cost savings

Second consecutive year ArcelorMittal is recognised by leading carmaker

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ArcelorMittal received the Technical Cost Savings award during PSA Group’s 2016 Best Supplier Awards ceremony.

It’s the second year running that ArcelorMittal has been recognised by PSA Group, makers of leading brands including Peugeot, Citroën, and DS. In 2015, ArcelorMittal was recognised in the Value Creation category. PSA Group’s Best Supplier Awards are an opportunity for the company to reaffirm the strategic importance of supplier relations to its ‘Push to Pass’ profitable growth plan.

Carlos Tavares, chairman of the Managing Board of PSA Group, opened the annual ceremony with a reminder that the Group needs to be at the cutting-edge in terms of efficiency and quality to achieve this goal.

ArcelorMittal was recognised as the Best Supplier in the Technical Cost Savings category. It acknowledges ArcelorMittal’s ability to propose solutions which reduce the cost of delivered standard parts, thereby contributing to the PSA Group's competitiveness.

Proposing solutions which reduce costs

Awarding the prize to ArcelorMittal, Yannick Bézard, PSA Group’s executive vice-president for purchasing said: "ArcelorMittal is involved in all of PSA Group's projects to enhance competitiveness: from innovation to serial production. They are working on weight and cost savings, and finding the best material solution for each vehicle.”

From left to right: Yannick Bézard, executive vice-president, purchasing - PSA Group; Philippe Aubron, CMO Automotive Europe - ArcelorMittal; Yann Vincent, EVP manufacturing and supply chain - PSA Group

Early involvement results in significant savings

“The best example,” noted Yannick Bézard, “is the systematic review of the body-in-white which we undertake in the very early stage of all our new projects. This approach returns an average cost saving of minus €5 to minus €8 per car. Another example is ArcelorMittal’s ability to team-up with stamping companies to boost their VA/VE proposals."

VA/VE stands for Value Analysis/Value Engineering. It is a systematic and organized procedural decision making process which allows ArcelorMittal to creatively generate alternative solutions which secure essential functions at the greatest value and the lowest cost.

PSA Group’s Push to Pass plan aims to turn the Group into a carmaker with cutting-edge efficiency and a global provider of mobility services. The 2016 awards had a special focus on responsible performance, a critical ingredient in achieving efficiency. In total 15 suppliers received awards for their commitment and the quality of their response to the PSA Group’s expectations.

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Editorial by
Jean-Martin Van der Hoeven