Arcelor to build $600-m steel mill in Mexico
Arcelormittal, the world’s largest steelmaker, said it would build a $600 million steel mill in Mexico.
By PTI |
BRUSSELS/LONDON: Arcelormittal, the world���s largest steelmaker, said on Monday it would build a $600 million steel mill in Mexico and buy a coking coal plant in the US. The company said it was still looking at potential sites for the Mexico mill, which will be able to turn out some 500,000 metric tonne (551,000 tonne) of carbon steel and bars every year for the car-making and construction sectors in the country.
It expects the new plant to supply the Mexican government���s plan to upgrade infrastructure and build more housing. ArcelorMittal (MT) also said it would pay $160 million to buy the Koppers��� Monessen Coke Plant from Koppers to secure more of the fuel it needs to fire steel furnaces. The Koppers��� plant turned out 3,20,000 metric tonne (3,53,000) of coke last year.
ArcelorMittal���s ambitions to strengthen its presence in China has hit a roadblock with the world���s largest steel maker putting on hold the plans to buy majority stake in China Oriental. A daily newspaper has reported that the steel giant has been forced to put its plans on hold.
Quoting Lakshmi Mittal, the daily said that it looked as if the firm would have to settle for just under 30% stake in China Oriental, even though it had at one time appeared confident of holding more than 70%.
���We may have to accept less than we wanted If this happens, I will be disappointed. But a stake in the company of 30% or so still is very useful for us,��� he told the newspaper.
Hong Kong-listed China Oriental is a leading steel maker and its mid-sized steel mill in the Northern province produces about four million tons of steel a year.
Lakshmi Mittal also told the daily that the ���Chinese government was still not happy with the idea of a foreign steel maker controlling a leading steel producer.���
In December 2007, ArcelorMittal and China Oriental had announced that the world���s largest steel maker is buying a 73.13% stake in the firm.
According to Financial Times, this year ArcelorMittal was forced to sell back some of its shares in the company to restore a free float of more than 50%.
���It now emerges that ArcelorMittal is unlikely to win approval by Beijing to buy all the shares it wanted from existing investors. As a result, ArcelorMittal will be left with a stake of 29%,��� the report added.
It expects the new plant to supply the Mexican government���s plan to upgrade infrastructure and build more housing. ArcelorMittal (MT) also said it would pay $160 million to buy the Koppers��� Monessen Coke Plant from Koppers to secure more of the fuel it needs to fire steel furnaces. The Koppers��� plant turned out 3,20,000 metric tonne (3,53,000) of coke last year.
ArcelorMittal���s ambitions to strengthen its presence in China has hit a roadblock with the world���s largest steel maker putting on hold the plans to buy majority stake in China Oriental. A daily newspaper has reported that the steel giant has been forced to put its plans on hold.
Quoting Lakshmi Mittal, the daily said that it looked as if the firm would have to settle for just under 30% stake in China Oriental, even though it had at one time appeared confident of holding more than 70%.
���We may have to accept less than we wanted If this happens, I will be disappointed. But a stake in the company of 30% or so still is very useful for us,��� he told the newspaper.
Hong Kong-listed China Oriental is a leading steel maker and its mid-sized steel mill in the Northern province produces about four million tons of steel a year.
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Lakshmi Mittal also told the daily that the ���Chinese government was still not happy with the idea of a foreign steel maker controlling a leading steel producer.���
In December 2007, ArcelorMittal and China Oriental had announced that the world���s largest steel maker is buying a 73.13% stake in the firm.
According to Financial Times, this year ArcelorMittal was forced to sell back some of its shares in the company to restore a free float of more than 50%.
���It now emerges that ArcelorMittal is unlikely to win approval by Beijing to buy all the shares it wanted from existing investors. As a result, ArcelorMittal will be left with a stake of 29%,��� the report added.
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