November 22, 2008

ArcelorMittal update on strategy in Turkey - Report

Turkish business daily Referans quoted Mr LN Mittal CEO & president of ArcelorMittal as saying that the Turkish steel market is valuable for ArcelorMittal. He said that "ArcelorMittal is aware of the Turkish steel sector's growth potential, therefore, we have no plans to sell the shares we own in Erdemir."

It may be noted that ArcelorMittal had increased its stake in Erdemir to slightly 24.9% from 13.62% in mid June 2008. In increasing its shares in Erdemir to 24.9%, ArcelorMittal is not seeking to have right of representation on the administrative board. It currently is not looking to increase its shares in Erdemir to above 25%.

Revealing ArcelorMittal's other investment plans in the region, Mr Mittal said that "Besides its investment in Erdemir, ArcelorMittal is also in a partnership with Borusan, one of Turkey's leading steel producers. In 2007, ArcelorMittal and Borusan had announced a 50:50 JV partnership, which would see a USD 500 million investment in the construction of a new hot strip mill in Turkey. This also shows the importance we attach to Turkey."

He added that the mill, located next to ArcelorMittal and Borusan's jointly operated Borçelik plant in Gemlik, on the Marmara Sea coast, is scheduled to come online in first half of 2010 with a capacity of 4.8 million tonnes. The new facility, which plans to employ 450 people, is foreseen to provide USD 3 billion turnover annually, once it begins to operate at full capacity.