FT reported that ArcelorMittal is planning a 50% increase in capital spending in 2010 to take advantage of growth opportunities in emerging markets, as more signs are pointing to a broad upturn in the steel industry.
Mr LN Mittal chairman and main owner of ArcelorMittal told the Financial Times that he thought the company's capital investment in 2010 would be USD 4 billion to USD 5 billion, up from about USD 3 billion in 2009. He added that "We are looking at growth initiatives in parts of the world where steel demand is likely to grow at a reasonable rate, in line with the expectation of a recovery."
ArcelorMittal is also keen to boost its presence in China through investment plans with its partners that are still being finalized. ArcelorMittal's presence in China is still small, which is a source of concern to Mr Mittal because the country accounts for about 40% of the world's steel output and consumption.
Mr Mittal said that "Demand in many parts of the world is coming back to normal, although we will see most of the extra consumption taking place in emerging markets rather than in the US and Europe."
Mr Mittal said that he expected the company's EBITDA for the fourth quarter to be USD 2 billion to USD 2.4 billion. EBITDA for the third quarter was USD 1.6 billion, which was in line with the company's previous guidance of between USD 1.4 billion and USD 1.8 billion.
ArcelorMittal said that shipments from its worldwide network of plants had risen 7% in the three months to the end of September as compared with the previous quarter, as it had started to open mothballed facilities in line with signs of higher demand.
