In June 2006, the world’s two top players in the steel industry merged to form ArcelorMittal - the largest vertically integrated company the world had ever seen. The new mega-company had operations that stretched upstream, right the way to iron ore exploration and coal mining as well as downstream into steel mills.ArcelorMittal has retained its top spot and has continued its profitability drive right up to the present day. It is now not only the largest steel producer in the world, but also has 29 mining operations, excluding two greenfield projects and other early-stage exploration projects.
ArcelorMittal embodies not only the virtues of vertical integration, but also provides the template for how such a strategy is typically carried out - a company grows as far as it can in its own individual field and then, if the market and finances allow, purchases or merges with a larger company...