Indus Valley Times

By Nalini Sahu

Bhubaneswar, Dec. 16: ArcelorMittal, which has taken over Essar Steel project in Odisha, on Monday announced that it has completed the acquisition of Essar Steel India Limited (‘ESIL’).

The company also said it had simultaneously established a joint venture with Nippon Steel Corporation (‘Nippon Steel’), called ArcelorMittal Nippon Steel India Limited (‘AM/NS India’), which will own and operate ESIL.

ArcelorMittal holds 60 per cent of AM/NS India, with Nippon Steel holding the balance.

Aditya Mittal, President and CFO of ArcelorMittal, has been appointed Chairman of AM/NS India, and Dilip Oommen has been appointed AM/NS India’s CEO.

Commenting, Lakshmi Mittal, Chairman and CEO of ArcelorMittal, said, ““The acquisition of Essar Steel is an important strategic step for 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 over a decade. Both India and Essar’s appeal are enduring. Essar has sizeable, profitable, well-located operations and the long-term growth potential for the Indian economy and therefore Indian steel demand are well known. The transaction also demonstrates how India benefits from the Insolvency and Bankruptcy Code, a genuinely progressive reform whose positive impact will be felt widely across the Indian economy”.

Eiji Hashimoto, representative director and president of Nippon Steel, said, “AM/NS India manufactures flat steel, steel plates and steel pipes mainly at its integrated steel mill with nominal crude steel production capacity of 9.6 million tonnes per year in India, one of the most promising steel markets in the world. The company also has a wide-ranging domestic sales network and manufacturing plants in east India producing pellets, a raw material of steel.”