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Consider Mittal, a very large steel company. Isn't the value what a steel company produces already laying inside of the ground? Making money off of natural res
by andreyf 18y ago
Consider Mittal, a very large steel company.
Isn't the value what a steel company produces already laying inside of the ground? Making money off of natural resources seems to require connections in government more so than it does skill or innovation.
- gaius 18y agoNot really - Mittal's skill has been in buying up loss making mills and turning them around. Their core skill is in training people to operate existing mills more efficiently. Secondly, you don't know much about steel. For a start it is not "already laying inside the ground" (go on, find me a "steel mine" somewhere). It's not one thing either; there are countless alloys, and every customer wants something slightly different. Steel is a manufacturing business like any other. You might as well say the products of a bakery are just growing in a field somewhere.
- furiouslol 18y agoYou have no idea how tough it is to run a steel mill. I've been to many mills to observe their operations and different mills have different operation styles (I've been to one of Mittal Group's mills and their operation is the most minimalist). You definitely need skill in order to run the factory efficiently. Especially at this current period when steel prices are plummeting faster than prices of raw materials are. Managing a steel mill is not for the faint-hearted. It's nothing like running a tech company.