ArcelorMittal, Nippon Steel Complete Essar Acquisition

ArcelorMittal has completed the acquisition of Essar Steel India Ltd., and simultaneously established a joint venture with Nippon Steel Corp., called ArcelorMittal Nippon Steel India Ltd. (AM/NS India), which will own and operate Essar. ArcelorMittal holds 60% of AM/NS India, with Nippon Steel holding the balance.

“The acquisition of Essar Steel is an important strategic step for ArcelorMittal,” said Lakshmi Mittal, chairman and CEO of ArcelorMittal. “India has long been identified as an attractive market for our company and we have been looking at suitable opportunities to build a meaningful production presence in the country for more than a decade.” Mittal said Essar has sizeable, profitable, well-located operations and the potential for long-term growth for the Indian economy is well-known.

“We are also delighted to be embarking on this together with Nippon Steel, with whom we have a trusted, long-term relationship,” Mittal said. “Our combined strengths and technology will bring many new opportunities, which will allow us to make a positive contribution to India’s target to grow steelmaking capacity to 300 million metric ton per year (mt/y) by 2030, and for its manufacturing sector more broadly.” AM/NS India’s current level of annualized crude steel production is approximately 7.5 million mt. It also has iron ore pellet facilities in the east of India, with current annual capacity of 14 million mt/y.

As featured in Womp 2020 Vol 01 -