ArcelorMittal Europe – Flat Products

Online client newsletter | September 2019

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True partners

ArcelorMittal and Chantiers de l’Atlantique agree long-term contract for shipbuilding steels

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ArcelorMittal Europe – Flat Products has signed a long-term agreement to supply steel to Chantiers de l’Atlantique, one of Europe’s leading cruise-ship builders. The contract builds further on the partnership which began back in 2014, and in which ArcelorMittal is providing steel and expertise to Chantiers de l’Atlantique. The strength of the relationship was recently reinforced when the ship-maker named ArcelorMittal as one of its 2019 Suppliers of the Year.

Modern shipbuilding relies on just-in-time deliveries from partners such as ArcelorMittal

The partnership between ArcelorMittal and Chantiers de l’Atlantique began in the early 2000s, but intensified when ArcelorMittal was selected as sole steel supplier for the world’s largest cruise ship – The Harmony of the Seas. In recognition of that success, Chantiers de l’Atlantique agreed to its first multi-vessel contract for steel from ArcelorMittal.

The agreement builds further on the partnership which began back in 2014

This new long-term agreement strengthens the partnership

The agreement recognises the demands placed on shipyards by cruise-ship companies as Serge Hily, Sourcing Department Manager at Chantiers de l’Atlantique explains: “Ship owners typically order a prototype and at least one sister ship. One of our major customers has placed fixed-price orders for ships to be delivered in 2025/26 with very demanding costs conditions. We need suppliers that are able to propose solutions which help us meet our targets.”

The Saint-Nazaire (France) shipyard was established in 1861

“We fully understand the difficult business model our client faces,” says Laurent Castro, key account manager for ArcelorMittal. “We ask ourselves what we can do to help our client, what can we improve in our way of working, what can we do better. We must propose new methods, new ideas. This is essential. What may look like a small change can lead to major improvements.”

Chantiers de l’Atlantique has produced some of the world’s largest cruise ships

Resident engineers, now for shipbuilding

That commitment took a giant step forward when ArcelorMittal appointed a resident engineer to represent the company at Chantiers de l’Atlantique. “At the time, we thought of a resident engineer as a purely technical person who could provide practical support and help us to evolve the range of steels we use,” says Bertrand Paquet. “But the role has changed significantly. The resident engineer is now involved in quality, logistics, the supply chain, and an ongoing ‘Factory of the Future’ project. He has also proposed a new grade for the cabin modules of our vessels which could significantly reduce the effort required to install them.”

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