2 April
2018
ArcelorMittal and Nippon Steel & Sumitomo
Metal Corporation ('NSSMC') announce that ArcelorMittal's
subsidiary ArcelorMittal India Private Limited ('AMIPL') has today
submitted an offer in the re-bidding process for Essar Steel India
Limited ('Essar Steel') in connection with the joint venture
between ArcelorMittal and NSSMC to jointly acquire and manage Essar
Steel.
NSSMC is Japan's leading steel company, with
capacity to produce approximately 50 million tons of crude steel
per year with a reputation for innovation and high-quality
products. ArcelorMittal and NSSMC have enjoyed a close
collaboration for many decades co-operating high-quality downstream
finishing facilities in the US including I/N Tek, I/N Kote and,
since 2014, jointly acquired and turned around AM/NS Calvert which
has state-of-the-art facilities in Alabama that had failed to reach
its potential under its previous owner.
Commenting, Lakshmi Mittal,
Chairman and CEO ArcelorMittal, said:
"The aim of the resolution
process is to find a strong, new, capable owner for Essar Steel and
maximize returns to creditors. We believe that ArcelorMittal,
together with NSSMC, has the most relevant credentials and
experience and is the most credible owner for Essar Steel given our
decades of steel industry expertise, backed up by industry leading
research and development and a wide range of innovative product
capabilities.
"We are confident we are
eligible; we are confident we have the strongest track record; and
we are confident we have made a strong and competitive offer. At
the heart of this offer is a compelling industrial plan that
enhances and transforms the asset. The plant in Hazira is a big
integrated steel-making facility that requires dedicated knowledge
and technological expertise to de-bottleneck, grow and enhance its
product portfolio. We plan to commit significant capital
expenditure to grow the asset, inject our proprietorial patents and
processes and bring new high-quality products for industries such
as automotive and solar to India.
"India has an ambitious goal to
transform its economy and deliver a better standard of living for
all its people. Developing its manufacturing industry is an
important component of this journey as exemplified by the
government's plan to expand the country's steelmaking capacity to
300 million tons. Supported by the right know-how and technology,
Essar Steel is well positioned to play a part in this. Given our
Indian heritage we would be proud to contribute to the country's
future prosperity."
Mr. Kosei Shindo, President of
NSSMC, said:
"India is the most promising
steel market in the world, and NSSMC has been seeking opportunities
to establish a significant presence in India, motivated by a long
and successful history of respect and collaboration between Japan
and India. This project, if implemented, will
be consistent with the policy of the Japanese Government to further
strengthen the relationship between India and Japan. The Japanese
Government has been following the project and is looking for its
realization.
"Essar Steel is a good asset with
a lot of potential and I believe that NSSMC and ArcelorMittal could
provide operational experience and access to the best of global
technologies that will enable Essar Steel to reach its potential
and greatly contribute to the turnaround of the Indian steel
manufacturing sector. We believe NSSMC, together with
ArcelorMittal, could help
India achieve the National Steel Policy as well as the
Make-in-India policy, as we have long been
contributing to localization of steel production in other countries
such as Brazil, USA,
and many ASEAN countries by direct
investment.
"I believe that the partnership
between NSSMC and ArcelorMittal will provide important economic
returns to Essar Steel's creditor banks, while substantially
enhancing the prospects for a sustainable turnaround plan for Essar
Steel and its employees, customers, suppliers and other
stakeholders."
AMIPL first submitted a bid for Essar Steel on
12th February. On 2nd March, ArcelorMittal announced it had signed
a joint venture agreement with NSSMC which will see the two
companies co-own and co-manage Essar Steel in the event AMIPL's bid
is successful.
ENDS
About
ArcelorMittal
ArcelorMittal is the world's
leading steel and mining company, with a presence in 60 countries
and an industrial footprint in 18 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 people use in
their everyday lives more energy
efficient.
We are one of the world's five
largest producers of iron ore and metallurgical coal. 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 2017, ArcelorMittal had
revenues of $68.7 billion and crude steel production of 93.1
million metric tonnes, while own iron ore production reached 57.4
million metric tonnes.
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:
http://corporate.arcelormittal.com/
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