ArcelorMittal Acquires 50% Share in Gonvarri Brasil and Enters Brazilian Steel Service Centre Market

Regulatory News:

ArcelorMittal, the world’s largest and most global steelmaker, announces the acquisition of a 50% share of Gonvarri Brasil to form a Steel Service Centre joint venture. Gonvarri Brasil is one of the major players for servicing automotive, industry and distribution customers. ArcelorMittal and Gonvarri group have had a close relationship for many years – ArcelorMittal holding a significant stake in Gonvarri Holding and being a major supplier. The two groups already own a common facility in Senica, Slovakia, which started operations in 2007.

With this acquisition, ArcelorMittal intends to build a strong presence in the Brazilian flat steel downstream segment, in line with the leadership of its Tubarão (Vitoria) and Vega do Sul plants. Synergies will also be realized with ArcelorMittal Belgo’s existing distribution network in Brazil, active both in flat and long products.

“This is a first step for Steel Solutions and Services (AM3S) in Brazil. This joint venture will allow ArcelorMittal and Gonvarri to become a major player in the Brazilian steel downstream market, with significant growth expected in the next years by operating state of the art facilities”, said Gonzalo Urquijo, Senior Executive Vice President and member of the Group Management Board, in charge of Long Products and ArcelorMittal Steel Solutions and Services.

“This JV is an important step in the strengthening of our relationship with ArcelorMittal, allowing us to develop synergies and paving the way for further partnerships. It will also allow us to further grow in this very promising market”, said Jon Riberas, Gonvarri’s CEO.

Gonvarri Brasil initiated its activities in 1999 with a first Steel Service Center (SSC) in Curitiba, Paraná State, mainly dedicated to the automotive sector. In 2002, the Gonvarri Group opened a second SSC in Campinas to continue with its growth strategy in Brazil and for supplying the industrial sectors of the São Paulo area.

Today the company is one of the leaders of the flat steel processing in Brazil and its activities include pickling, slitting, blanking, cutting to length, with a total processing capacity of around 1.3 million tons of steel. The Company has 320 employees and owns more than 80,000 square meters of facilities.

Gonvarri Group is a leading company in the field of Steel Service Centres. Created in 1958 in Spain, the Company manages 15 SSCs in 7 countries, processing 3 million tons of steel per year with more than 2,000 employees.

About ArcelorMittal

ArcelorMittal is the world’s largest and most global steel company, with 310,000 employees in more than 60 countries. The company brings together the world’s number one and number two steel companies, Arcelor and Mittal Steel.

ArcelorMittal is the leader in all 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 28 European, Asian, African and American countries exposes the company to all the key steel markets, from emerging to mature, positions it will be looking to develop in the high-growth Chinese and Indian markets.

ArcelorMittal key financials for 2007 show revenues of USD 105.2 billion, with a crude steel production of 116 million tonnes, representing around 10 per cent of world steel output.

ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MTP), Brussels (MTBL), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).