September 07, 2008

ArcelorMittal to invest USD 20 billion for 2 steel plants in India

It is reported that ArcelorMittal has pledged an investment of about USD 20 billion for building two 12 million tonne steel plants in India, where the demand for the commodity is growing rapidly.

Mr LN Mittal CEO of ArcelorMittal told FT that it would spend USD 35 billion on capacity expansion of steel plants across the world. He added that "Of the USD 35 billion, USD 20 billion will go on two steel plants in India, in the states of Jharkhand and Orissa. If all goes according to plan, each plant will be making 12 million tonnes of steel a year by around 2015."

Mr Mittal believes that 2 plants in India make sense as the demand for steel is growing fast in the country. He told that by 2020, India could be consuming 200 million tonnes of steel a year.