Luxembourg --- MININGREVIEW.COM --- 12 February, 2008 - ArcelorMittal – the world's top steel company, with 320 000 employees in more than 60 countries – has been awarded a licence by the Industrial Development Authority of the Egyptian Ministry of Trade and Industry to construct a steel plant in Egypt.
The company is the leader in all major global markets, including automotive, construction, household appliances and packaging industries. It latest figures show combined revenues of US$ 88.6 billion (more than R670 billion), with a crude steel production of 118 million tonnes, representing around 10 per cent of world steel output. It is listed on the stock exchanges of New York, Amsterdam, Paris, Brussels, Luxembourg and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia.
A news release issued here reveals that the license for the new Egyptian plant was auctioned in a competitive bidding process. ArcelorMittal's winning bid was for US$60 million (R450 million). Under the terms of the licence, the plant will produce 1.6 million tonnes of steel using DRI technology, and 1.4 million tonnes of billets through the electric arc furnace route.
Construction of the plant – which will be located close to the northern Red Sea coast – is expected to start in 2009.
CFO and ArcelorMittal Group Management Board member Aditya Mittal commented: “This development forms part of our three-dimensional growth strategy to look for opportunities to expand our business in the three key areas of geography, product and value chain. The Middle East is a growth market for the steel industry and it makes sense for ArcelorMittal to expand its presence in the region,” he explains.