Habitat for Humanity: ArcelorMittal

The business case Access to adequate shelter is vital to every human being, yet over 1.1 billion people are living in inadequate housing conditions. While the need for housing is clear, finding affordable solutions is not so clear. In 2008, soon after the Tecucel River in Romania flooded and destroyed more than 300 homes, the ArcelorMittal Foundation formed a global partnership with Habitat for Humanity to improve affected families’ lives. In partnership with Habitat for Humanity, ArcelorMittal adapted a Habitat for Humanity house design into a light steel frame housing solution that is affordable, durable and environmentally friendly and could also be transferrable to other countries around the world – enabling ArcelorMittal to enter into the low-cost housing construction market. (Download full case study - 4 pages)

Access to adequate shelter is vital to every human being, yet over 1.1 billion people are living in inadequate housing conditions. One in four households lives in poverty and over 100 million people worldwide are homeless. According to the United Nations Centre for Human Settlements, an estimated 21 million new housing units are required each year to accommodate the growth in the number of households.

In 2008, soon after the Tecucel River in Romania flooded and destroyed more than 300 homes, the ArcelorMittal Foundation formed a global partnership with Habitat for Humanity to improve affected families’ lives. In partnership with Habitat for Humanity, ArcelorMittal developed a light steel frame housing solution that is affordable, durable and environmentally friendly and is transferrable to other countries around the world – enabling ArcelorMittal to enter into the low-cost housing construction market.

ArcelorMittal is the world's leading steel company, with operations in more than 60 countries. It is a leader in all major global steel markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, and has sizeable captive supplies of raw materials and distribution networks.

With an industrial presence in over 20 countries spanning four continents, the company covers all of the key steel markets, from emerging to mature. In 2008, ArcelorMittal had revenues of US$ 124.9 billion and crude steel production of 103.3 million tonnes, representing approximately 10% of world steel output.

Dedicated to solving the housing issue, Habitat for Humanity is currently working in more than 90 countries around the world and has built and renovated over 300,000 homes in partnership with people in need of housing. Habitat for Humanity’s goal is to build “simple, decent and affordable” homes across the globe and to make poverty housing and homelessness become socially, politically and religiously unacceptable. ArcelorMittal is convinced that it can help Habitat for Humanity achieve that goal.

Activities

In April 2008, ArcelorMittal Foundation and Habitat for Humanity signed a partnership agreement to build homes with people in need, in countries where both ArcelorMittal and Habitat for Humanity are present. The partnership includes direct contributions to the non-profit organization as well as volunteer work from employees of ArcelorMittal. It also aims at promoting the offering of a light steel frame housing solution as it matches Habitat requirements of an affordable shelter while being at the same time safe, durable and environmentally friendly.

ArcelorMittal also collaborates with Habitat for Humanity as part of the company’s Global Volunteer Work Day, where ArcelorMittal employees have been involved as volunteers in Habitat for Humanity projects in Argentina, Costa Rica and Romania aimed at building and renovating homes for the underprivilaged local families.

Results

Three months of development resulted in the “Casa Buna” – or “Good House” in Romanian – prototype. This two-floor house for four families can be easily constructed by supervised non-professional construction volunteers and has at least a 20-year life span. The model uses a simplified design method for light gauge steel frames that was developed by ArcelorMittal Research and Development in Liege, Belgium.

The prototype was constructed in the ArcelorMittal facility in Bucharest and uses a light steel frame structure, a pre-painted steel roof tile system, a steel rainwater extraction system, and the option of steel cladding made of pre-painted roll-formed parts. The houses are designed to be environmentally friendly as the steel frame results in a more durable structure that will last longer than other similarly priced materials. They can also be easily deconstructed and once disassembled, almost all of the materials can be recycled indefinitely.

Additionally, lighter structures require reduced foundations, limiting the use of concrete and the steel provides better control of thermal and acoustical performance, due to precise workshop preparation. The model has also been designed for energy efficiency and carefully assessed to ensure family comfort and adequate living space. It is also earthquake and hurricane resistant and complies with the European fire resistance standards. Finally, the elements are easily transportable as a “flat pack” construction kit to ensure other Habitat for Humanity projects can benefit from this innovative technology.

The pre-fabricated steel elements have the advantage of high-precision assembly. This is important for elements such as tight fitting window frames and doors, and is an advantageous selling point for the “Casa Buna” design.

From a social point of view, the company’s roll-forming technology is easily transferrable to local entrepreneurs and it meets Habitat for Humanity’s standards:

• Is adequate for climatic & seismic conditions in Romania
  
  
• Is cost-competitive with traditional construction
  
  
• Is energy-efficient: in continental climate with cold winters and hot summers, combined with raising cost of energy, heating bills must be affordable to budget constrained families
  
  
• Meets all technical requests of local authorities
  
  
• Satisfies beneficiary families: each family buys and builds their own home with non-profit mortgages and “sweat equity” volunteer hours
  
  
• Adapts to Habitat for Humanity architectural design in each specific case
  
  
• Offers usage flexibility - e.g., internal partitioning, external envelope aspect
  
  
• Has a volunteer-friendly design - every home is mostly built by non-professional construction volunteers.

An important aspect of the Casa Buna model is that it is an “open structure”, meaning that all of the steel elements are easy to produce using basic machinery that allows for cost-effective, competitive pricing on the steel materials. The assembly requires little more than screws and bolts, both of which are readily available in most countries. This simple assembly method means that volunteers are able to carry out most of the construction stages. Because Habitat for Humanity relies on volunteers for most of its projects, this lowers the cost of construction considerably.

Lessons learned

One of the most valuable lessons learned from this project so far has been the importance of innovation. Actively looking for new ways to use steel and new, untapped markets can really have a positive impact – not just for the business but also for other stakeholders.

In 2009, Habitat for Humanity, sponsored by the ArcelorMittal Foundation, is building three “Casa Buna” homes for 12 partner families in need in Romania. Construction of these houses began in May. The Foundation is also providing funding for critically needed renovations to a number of apartment blocks in the country. These renovations will include measures to improve energy efficiency through new thermal insulation, roof repair, replacement of windows and doors, and more efficient heating systems depending on the technical requirements of the apartment blocks.

ArcelorMittal is also in discussions with Habitat for Humanity to export an adapted “Casa Buna” model or similar low-cost steel housing solutions to countries in Central America. The goal is to build more durable homes using steel structures and roofing in countries that are prone to earthquakes and hurricanes and to train communities to adopt safer construction practices.

• For more information on the Casa Buna please visit the website of Habitat for Humanity at www.habitat.org/eca/getinv/arcelor_m_partnership.aspx
  
  
• For more information on the ArcelorMittal Foundation please visit http://www.arcelormittal.com/index.php?lang=en&page=705

• Full case study ( 189 kb)

Author WBCSD Publication Date 21 Sep 2009 Document Type Case studies Issue/Topic Urban Infrastructure Source WBCSD Include In RSS Sustainable Development Case Studies		189 kb