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ArcelorMittal Opens Third Slovak Plant to Supply Carmakers

ArcelorMittal SA opened a welded blanks factory, its third plant in Slovakia, to serve carmakers with assembly factories in the east European country.

The company spent 10 million euros ($13.6 million) to build the facility, which will have a production capacity of as much as 2 million parts annually for carmakers such as Volkswagen AG, ArcelorMittal said in a statement today. The plant, located in Senica, western Slovakia, will employ 100 people by 2018 when the capacity is set to double.

While ArcelorMittal has shut down factories in western Europe to cope with falling demand, the eastern part of the continent “is still a growth area,” Robrecht Himpe, chief executive officer of the company’s Flat Carbon Europe unit told reporters in Senica.

ArcelorMittal is benefiting from Slovakia’s position as a central European hub for the car industry. Volkswagen, PSA Peugeot Citroen and Kia Motors Corp. have factories in the euro-area country, which have been followed by suppliers.

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