ArcelorMittal appoints Fontana as new CEO of stainless div

NEW DELHI: Global steel major ArcelorMittal today said it has appointed Bernard Fontana as Chief Executive of its stainless division, which is being assessed for a potential spinoff.

"Fontana was previously Head of Human Resources for the Group and is replacing Jean-Yves Gilet, who has left the Company to head France's Strategic Investment Fund," the Luxembourg-headquartered company said in a statement.

Willie Smit, former vice president of Employee Relations and Benchmarking, will replace Fontana.

Chairman and CEO of the company Lakshmi Mittal said, "Bernard Fontana has a successful track record in both the operational and commercial aspects of the Group's business so he is well placed to lead our Stainless Division into its next exciting phase of development, as we assess its potential spin-off."

Earlier, announcing the company's second quarter results in July he had said that the group had confidence in the future of the stainless business and believes that the creation of a separately focused company will create additional value for all shareholders.

The spinoff is likely to take place at the start of next year. The unit employs about 11,000 employees. It reported earnings before interest, tax, depreciation and amortisation of USD 191 million in the second quarter on sales of USD 1.54 billion.

ArcelorMittal is the world's leading steel company, with industrial presence in over 20 countries. Last year it had revenues of USD 65.1 billion and crude steel production of 73.2 million tonnes, representing approximately 8 per cent of world steel output.