ArcelorMittal cuts R&D expenses by 4% at $259 million in 2014

The company had reported R&D expenditure of $270 million in the year-ago period

World's largest steel company ArcelorMittal today said it has cut expenditure on research and development by 4% at $259 million for 2014 amid a global offset in the sector.

The NRI-billionaire Laxmi Mittal led company had reported R&D expenditure of $270 million in the year-ago period, ArcelorMittal said in a report.

"In 2014, we worked on 23 specific programmes developing sustainable products for the automotive, construction, metal processing, appliances and electrical steels markets. These involved a combined expenditure of more than $108 million," the company said.

"We currently have 80 new products under development in R&D which aim to reduce CO2 emissions and fuel consumption," it added.

In 2012, the company had spent $285 million on research and development.

The company has also cut its community investments by almost 50% at $17.1 million. In 2013, community investments were $33.7 million.

The company said the number of beneficiaries of its community projects declined to 5.3 lakh people in 2014 from more than 30 lakh a year ago.

Chairman and CEO Laxmi Mittal said: "We are proud of what we have achieved, but we recognise that the world in which we operate is constantly evolving and we need to adapt our thinking and behaviour accordingly.

"The importance of being able to adapt is crucial in all aspects of our business. Since 2009 we have had to adapt to less demand for steel in the developed nations, the emergence of China as the biggest producer and consumer of steel and the increasing demand from our customers for more sophisticated steel solutions."

In 2014, the company had spent $375 million on various environmental projects, a growth of 81% over 2013.

During the year, the company registered a decline in its net loss to $1.086 billion from $2.545 billion in 2013.