Arcelor-Mittal targets deals in Latin America
Arcelor-Mittal, the world’s largest steelmaker, plans to make acquisitions across Latin America, Lakshmi Mittal said, broadening an expansion drive beyond India and China to tap rising demand for the metal.
By Agencies |
BUENOS AIRES: Arcelor-Mittal, the world’s largest steelmaker, plans to make acquisitions across Latin America, Lakshmi Mittal said, broadening an expansion drive beyond India and China to tap rising demand for the metal.
Mr Mittal, who’ll be president of the new group, is flying to Mexico on Monday for negotiations with Grupo Villacero, a closely held company, over a steel plant that it has next to a Mittal facility, Mr Mittal said. Arcelor-Mittal also plans acquisitions elsewhere in the region, he said in an interview in Buenos Aires, without saying how much the company may spend.
“We will strengthen our position in Latin America,” Mr Mittal said, naming Argentina, Brazil and Central America as possible areas for expansion. “Brazil is very interesting for us. We will continue to look at opportunities for strengthening our presence there,” he said.
Mr Mittal, currently chairman of Mittal Steel, has previously emphasised the importance of seeking growth in India and China, the world’s two most populous countries. The Villacero plant is on the same plot of land as Mittal’s Lazaro Cardenas steel unit, Mr Mittal said.
Grupo Villacero, owned by entrepreneur Pablo Villarreal, has units in Mexico and Texas, and is the Latin American country’s biggest steel distributor, according to the company’s website. Villacero is also Mexico’s No 1 supplier of so-called steel long products used in the construction industry, it said. Mittal is Mexico’s biggest steel maker.
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“The industry is in much better shape than before,” Mr Mittal said. “We are a couple of years ahead” of rivals in the drive to consolidate the steel industry. Declining energy costs were benefiting steelmakers, while global demand remained good, he said. “I do not see weakness in demand anywhere,” he said. “Oil prices have come down. That’s another good sign.” Crude oil prices have fallen 19% since July 14, when oil reached a record $78.40 a barrel.
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