BHP remains the standout brand in the Brand Finance Mining, Iron & Steel 25 2019 ranking. Growing 17% to US$6.0 billion and maintaining its AA brand strength rating, it held its position as the world’s most valuable and world’s strongest mining brand, as well as Australasia’s most valuable business-to-business brand. BHP’s corporate leadership has invested significant effort in charting out a forward-looking brand vision based around growth and security, despite the risk of global financial challenges. Its major re-branding exercise continues to derive strong results as BHP has increased its brand value 51% since 2017.
David Haigh, CEO of Brand Finance, commented:
“In a sector where brand and reputation have been largely ignored, now more than ever, mining companies are realising that branding matters. BHP is the perfect example of this, using a re-branding exercise to demonstrate its role in Australia’s economy and community, substantially improving its brand value over the last two years.”
The world’s second most valuable mining, iron and steel brand goes to ArcelorMittal, improving 52% to US$4.3 billion, with the price recovery of steel helping boost revenues. Acquisitions are also driving its brand value growth; the company completed its transaction to acquire Italian steelworks brand, Ilva, which will be known as ArcelorMittal Italia and help grow its European steel business. It also announced plans to acquire the insolvent Essar Steel, which supplies the only steel approved in India for warships, submarines, battle tanks and armoured vehicles. This acquisition is through a 50-50 joint venture with Nippon Steel, Japan’s largest steel producer and third largest steel producer in the world.
Nippon Steel also performed well in the ranking, increasing 34% to US$3.1 billion as the company focused on growing market share and export volumes of high-grade steel for cars. A strong demand for auto-steel in Asia and North America was a large driver for the company to form joint ventures and carry out acquisitions in these regions.
Domestic focus pays off for Tata Steel
India’s largest private-sector steel producer, Tata Steel is the fastest-growing mining, iron and steel brand this year, up 60% to US$1.2 billion. India experienced increasing demand for steel to facilitate government infrastructure projects, and the company focused its strategy domestically, opening the Kalinganagar steel plant in Odisha, helping Tata Steel to increase sales to almost 8 million tons annually.
In August 2018, Tata Steel announced its Q1 consolidated net profit more than doubled from the same period last year, which was largely contributed to sales growth in the automotive and industrial sectors as well as improved operational efficiencies.
Following its 15% brand value decrease in 2018, Kobelco fell a further 23% this year to US$736 million in the Brand Finance Mining, Iron & Steel 25 2019 ranking. The company was indicted after admitting to fabricating the strength and quality data of products sold to hundreds of clients, including Boeing, Toyota and General Motors. The scandal has affected both demand and supply of its products – EU aircraft manufactures were advised by the EU aviation regulator to stop using parts supplied by Kobelco – and has also led to a shake-up of the company’s senior management, including the resignation of its chief executive Hiroya Kawasaki.
As Kobelco struggles to turn things around, other brands should take notice. The largest producer of iron ore in the world, Brazilian mining company Vale, improved 26% to US$2.6 billion as the price of iron ore remained relatively high, driving its growth. However, the company’s shares recently plummeted 20% after a tailing dam collapsed in late January, killing more than 150 people. The lasting effects of the dam disaster, both for Vale and iron ore prices, will continue to be seen in the coming months.
Note to Editors
Every year, leading valuation and strategy consultancy Brand Finance values the world’s biggest brands. The 25 most valuable mining brands in the world are included in the Brand Finance Mining, Iron & Steel 25 2019 report.
Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors.
Additional insights, more information about the methodology, as well as definitions of key terms are available in the Brand Finance Mining 25, Iron & Steel 2019 report.
Brand Finance helped craft the internationally recognized standard on Brand Valuation – ISO 10668, and the recently approved standard on Brand Evaluation – ISO 20671.
Data compiled for the Brand Finance league tables and reports are provided for the benefit of the media and are not to be used for any commercial or technical purpose without written permission from Brand Finance.