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ArcelorMittal to Build Steel Plant in Egypt

02/07/2008 - ArcelorMittal prepares to construct a 1.6 million tonne/year DRI/EAF based steel plant in Egypt after securing the license from Egypt’s Ministry of Trade and Industry for a winning bid of L.E. 340 million (approximately USD 60 million).

The Industrial Development Authority (IDA) of Egypt’s Ministry of Trade and Industry has awarded ArcelorMittal a license to construct a steel plant in Egypt. ArcelorMittal submitted the winning bid of L.E. 340 million (approximately USD 60 million) as part of a competitive bidding process.
 
 “We are pleased to have been successful in this auction,” commented Aditya Mittal, CFO and Member of the ArcelorMittal Group Management Board. “This forms part of our three-dimensional growth strategy to look for opportunities to expand our business in the three key areas of geography, product and value chain. The Middle East is a growth market for the steel industry and it makes sense for ArcelorMittal to expand its presence in the region."
 
Under terms of the license, the plant will produce 1.6 million tonnes of steel using direct reduced iron (DRI) technology, and 1.4 million tons of billets through the electric arc furnace route.
 
Construction of the plant, which will be located close to the Northern Red Sea Coast, is expected to start in 2009.
 
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 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.