Business

ArcelorMittal forms JV with Nippon Steel

60:40 venture to operate Essar Steel

ArcelorMittal, the world’s largest steel maker, on Monday, completed the acquisition of Essar Steel India Ltd. Simultaneously, the firm established a joint venture with Nippon Steel Corporation (Nippon Steel) — ArcelorMittal Nippon Steel India Limited (AMNS India) — to own and operate ESIL. “ArcelorMittal holds 60% of AMNS India, with Nippon Steel holding the balance,” the company said in a statement, adding that Aditya Mittal, president and CFO of ArcelorMittal, had been appointed chairman of AMNS India, and Dilip Oommen as the CEO. Lakshmi Mittal, chairman and CEO of ArcelorMittal, said: “The acquisition of Essar Steel is an important strategic step for ArcelorMittal. We have been looking at suitable opportunities to build a meaningful production presence in the country for over a decade.”

AMNS India’s current level of annualised crude steel production is 7.5 million tonnes per annum (mtpa). The JV aims to increase the shipments to 8.5 mtpa in the medium term and to increase the finished steel shipments to between 12-15 million tonnes through the addition of new iron and steel-making assets in the long term.

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Printable version | Feb 27, 2020 1:18:38 AM | https://www.thehindu.com/business/arcelormittal-forms-jv-with-nippon-steel/article30323252.ece

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