ArcelorMittal to construct steel plant in Egypt

Luxembourg: ArcelorMittal announced that it has been awarded a license from the Industrial Development Authority (IDA) of Egypt’s Ministry of Trade and Industry to construct a steel plant in Egypt.

ArcelorMittal won the license in a competitive bidding process paid approximately USD 60 million. Under the terms of the license, the plant will produce 1.6 million tons of steel using DRI technology and 1.4 million tons of billets through the Electric Arc Furnace Route.

Construction of the plant, which is located close to the Northern Red Sea Coast, is expected to start in 2009.

Aditya Mittal, CFO and Member of the ArcelorMittal Group Management Board, said: “We are pleased to have been successful in this auction. This 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."

ArcelorMittal acquires Austrian steel distribution company

To enhance it’s presence in Central Europe, ArcelorMittal, the world's largest steel company, announces that it has acquired 100 per cent stakes of the Eisen Wagner GmbH, the Austrian steel distribution company.

Gonzalo Urquijo, member of ArcelorMittal's group management board and in charge of its Steel Solutions and Services division, commented: "This acquisition enables us to set foot in the very competitive and dynamic Austrian steel distribution market". "Once Eisen Wagner will be integrated into our Central European distribution network, it will allow ArcelorMittal to both strengthen its presence within this market and better serve its customers in Austria".

Eisen Wagner, one of the leading steel distribution companies in Austria It sold 140,000 tons and out of this 60,000 tons of steel products were processed in 2007. Its last yearly turnover from the year ending 28 February 2007, was 127 million euros, for a staff of 262.