ArcelorMittal S.A.: Strategic agreement signed between ArcelorMittal and Sider
7^th October 2012 - ArcelorMittal and Sider, an Algerian state-owned company,
signed a strategic agreement on Saturday 5 October that includes an investment
plan of US$763m for the steel complex at Annaba and the mines in Ouenza and
Boukhadra. The plan includes a project to more than double the steel plant's
production capacity from 1 million to 2.2 million tonnes a year by 2017.
The agreement was signed by Sudhir Maheshwari, chairman of ArcelorMittal
Holding AG and Mr Hasnaoui, chairman of Sider. The signing ceremony was
attended by Mr Lakshmi N. Mittal, chairman and CEO of ArcelorMittal, and the
Minister of Industry Mr Benyounes.
The plan will see ArcelorMittal reduce its shareholding in both ArcelorMittal
Annaba and ArcelorMittal Tebessa to 49%, with the state of Algeria holding the
remaining share of 51%. The investment plan will be funded by equity
contributions from shareholders and bank financing.
This plan will ensure a long term future forsteelmaking in Annaba and mining
in Tebessa, where the production unit will be modernized through the relining
of the blast furnace, modernization of the sinter plant, the steel plant and
the rolling mills. A new electric steel plant will be built (including an
electric arc furnace and continuous casting line) and the downstream units
will be reinforced with the construction of a new rolling mill for rebar and
wire rod with a production capacity of 1 million tonnes.
The investment will allow ArcelorMittal Annaba to better respond to increasing
domestic demand for steel products in Algeria and to positively contribute to
the government's drive to promote self-sufficiency in steel.
ArcelorMittal is the world's leading steel and mining company, with a presence
in more than 60 countries and an industrial footprint in over 20 countries.
Guided by a philosophy to produce safe, sustainable steel, we are the leading
supplier of quality steel in the major global steel markets including
automotive, construction, household appliances and packaging, with world-class
research and development and outstanding distribution networks.
Through our core values of sustainability, quality and leadership, we operate
responsibly with respect to the health, safety and wellbeing of our employees,
contractors and the communities in which we operate.
For us, steel is the fabric of life, as it is at the heart of the modern world
from railways to cars and washing machines. We are actively researching and
producing steel-based technologies and solutions that make many of the
products and components we use in our everyday lives more energy-efficient.
We are one of the world's five largest producers of iron ore and metallurgical
coal and our mining business is an essential part of our growth strategy. With
a geographically diversified portfolio of iron ore and coal assets, we are
strategically positioned to serve our network of steel plants and the external
global market. While our steel operations are important customers, our supply
to the external market is increasing as we grow.
In 2012, ArcelorMittal had revenues of $84.2 billion and crude steel
production of 88.2 million tonnes, while iron ore production reached 55.9
ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam
(MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of
Barcelona, Bilbao, Madrid and Valencia (MTS).
For more information about ArcelorMittal please visit: www.arcelormittal.com.
Contact information ArcelorMittal Investor Relations
Europe + 352 4792 3198
Americas +1 312 899 3985
Retail + 44203214 2417
SRI + 44 203 214 2854
Bonds/Credit + 33 171 92 10 26
Contact information ArcelorMittal Corporate
Phone: +352 4792 5000
ArcelorMittal Corporate Communications
Sophie Evans (head of media relations) +44 20 3214 2882
Laura Nutt +44 20 7543 1125
Martin Leeburn + 44 20 7379 5151
Sylvie Dumaine / Anne-Charlotte Creach + 33 1 5370 7470
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Source: ArcelorMittal S.A. via Thomson Reuters ONE
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