Arcelor Mittal (MT) is the Luxembourg-based behemoth that is the world's largest steel producer, boasting nearly three times the production capacity of the next largest producer. It has led the consolidation of the world steel industry over the past few years and has leading global market shares in automotive, construction, household appliances and packaging products.

Unlike many smaller players in the steel industry, MT is largely self sufficient with its own iron ore production. The company currently fulfills 50% of its own raw material, and it plans to further its vertical integration to reach the 75% threshold by 2010. Arcelor Mittal also plans to replicate its European distribution network, which completely dominates the continent's markets, and create a supply chain network in North America that will blow its smaller peers out of the water. And while both of these strengths in MT's business model are significant, they are really only complements to its manufacturing power.

With operations in more than 60 countries and steel mills on four continents, MT has become the largest steel producer in the world by both volume and sales. Its mills -- including 64 integrated, mini-mill and integrated mini-mill steel-making facilities -- produce about 138 million tons of long and flat steel annually. The company also operates iron mines, coal mines and coke plants that support its steel making operations in locations around the world. And initiatives to expand and gain new access to iron ore sources in Liberia, Ukraine and Senegal are slated to help the company reach its goal of a 75% self-sufficiency level in the next two years.

On top of having a firm grasp on the steel industry, Arcelor Mittal has benefited over the past couple years from the growing demand for steel in emerging nation -- steel prices have risen steadily, as have the shares of small and large producers, alike. Credit Suisse analysts believe that steel prices are heading even higher, citing the fact that global inventory has remained low while demand has outpaced supply in each of the past six years. And since MT's sales growth has been following steel prices up, healthy earnings growth is projected across all of the company's international operations for 2008.