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ArcelorMittal Lays Groundwork for Greenfield Facility in Russia
12/19/2007 - ArcelorMittal signs an agreement that will lead to creation of a greenfield long carbon steel production unit in the Tver region in Russia.
ArcelorMittal has signed an agreement with the administration of the Tver region in Russia for the eventual creation of a greenfield long carbon steel production unit.
The agreement is to make land available to ArcelorMittal for the construction of a one-million-tonne/year steel production complex comprising an electric arc furnace (EAF) meltshop and two bar mills.
The facility is to be built in two phases, beginning with a 600,000 tonne/year bar mill for the production of rebars and merchant bars. Work on the first phase—which represents an investment of around USD 100 million—is to start during the second quarter of 2008. Commissioning of this phase is scheduled for early 2010.
“I am very excited about this project, as this will become our first steel production unit in Russia,” said Malay Mukherjee, member of ArcelorMittal’s Group Management Board. “The mill in Tver will give us exposure to a construction sector which is expected to grow at a yearly rate above 10%. In addition to deploying its recognized expertise in management, production and marketing, ArcelorMittal will also implement in Tver world-class practices in areas such as health and safety, environment and training.”
Dmitry Zelenin, the governor of the Tver oblast, added, “Tver is a very dynamic region which experiences strong economic growth. We are very happy to be able to partner with a world-class company such as ArcelorMittal to further develop its potential”.
According to ArcelorMittal, the feasibility study on the second phase of the project is to begin shortly.
ArcelorMittal is the world's largest steel company, with 320,000 employees in more than 60 countries. The company leads a number of major global markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. An industrial presence in 27 European, Asian, African and American countries exposes the company to all the key steel markets, from emerging to mature, positions it will be looking to develop in the high-growth Chinese and Indian markets.
ArcelorMittal’s key pro forma financials for 2006 show combined revenues of USD 88.6 billion, with a crude steel production of 118 million tonnes, representing around 10% of world steel output.
