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ArcelorMittal to Invest in G Steel
03/03/2011 - ArcelorMittal has signed agreements to invest new capital resulting in a shareholding of 40% in G Steel Public Company Limited of Thailand.
ArcelorMittal has signed agreements to invest new capital resulting in a shareholding of 40% in G Steel Public Company Limited (G Steel).
G Steel and its subsidiary GJ Steel Public Company Limited (GJ Steel) are leading producers of hot-rolled coils in Thailand. G Steel has an EAF-based medium slab rolling facility and GJ Steel has an EAF-based thin slab rolling facility, with a combined annual capacity of over 2.5 million tonnes. The companies together have over 1,400 employees.
ArcelorMittal is partnering with a group of major shareholders represented by the Leeswadtrakul family, which is the founding shareholder of G Steel. ArcelorMittal has signed a shareholders agreement with the Leeswadtrakul family who will remain associated with the companies. ArcelorMittal has also signed a credit facility agreement with G Steel and GJ Steel for USD 500 million for working capital, capital expenditure and other corporate purposes.
"G Steel is an important component of our overall emerging markets strategy and will provide ArcelorMittal with a major manufacturing presence in Thailand and the ASEAN region where we expect steel demand to continue growing,” said Aditya Mittal, CFO and Member of ArcelorMittal’s Group Management Board. “Dr. Somsak Leeswadtrakul has built a high quality operation. We are confident that our global expertise and investment will develop the company’s potential and will facilitate an operational, financial and commercial turnaround.”
ArcelorMittal’s investment in G Steel is part of G Steel’s broader plan to strengthen its and GJ Steel’s financial position. The amount of capital to be invested by ArcelorMittal will be determined closer to completion of the transaction.
Completion of the transaction is conditional on a reduction in G Steel’s and GJ Steel’s outstanding liabilities as well as a range of other conditions, including regulatory approvals and approval of the G Steel and GJ Steel shareholders.
ArcelorMittal is the world's largest steel company, with operations in more than 60 countries. ArcelorMittal leads major global steel markets and holds leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. With an industrial presence in over 20 countries spanning four continents, the company covers the key steel markets, from emerging to mature.
Through its core values of Sustainability, Quality and Leadership, ArcelorMittal commits to operating in a responsible way with respect to the health, safety and wellbeing of its employees, contractors and the communities in which it operates. It is also committed to the sustainable management of the environment and of finite resources.
In 2010, ArcelorMittal had revenues of $78.0 billion and crude steel production of 90.6 million tonnes, representing approximately 8% of world steel output.
