• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Arcelor Mittal Announces Sale of Thuringen Long Carbon Steel Plant

Posted on: Wednesday, 6 December 2006, 06:00 CST

Arcelor Mittal (ISIN:LU0140205948) (Pink Sheets:ARLOF) (Paris:LOR) has announced today the agreed sale of Stahlwerk Thüringen GmbH ('SWT') to Grupo Alfonso Gallardo for an Enterprise Value of €591 million, as part of Mittal Steel's commitments to the European Commission during the recommended merger of Arcelor S.A and Mittal Steel N.V.

SWT, which is a 100% subsidiary of Arcelor Mittal, is located at Unterwellenborn, Thüringen, Germany. In 2005 the company's turnover was in excess of €400 million. SWT employs close to 700 associates and produces steel sections up to 550mm in width used in building and construction.

Industrial facilities located in Unterwellenborn are based on steel scrap recycling and combine an electric arc furnace, a ladle furnace, a four-strand continuous caster and a section rolling mill. SWT's annual production capacity is about 1 million tons.

Following Mittal Steel's bid for Arcelor the European Commission identified competition concerns in relation to heavy sections. In response, the company committed to dispose of three European medium/heavy section mills: Arcelor's Stahlwerk Thüringen and Travi e Profilati di Pallanzeno (Italy), and Mittal Steel's section and bar mill Huta Bankowa (Poland). The divestment process forthe two latter assets is well engaged.

[Aditya Mittal, CFO] Arcelor Mittal, said: "Stahlwerk Thüringen is a high quality facility and I am delighted that this transaction fully values its potential. I am sure that under the leadership of Grupo Alfonso Gallardo it will continue to thrive."

The closing of the transaction is foreseen to take place in early 2007, subject to European Commission approval and applicable antitrust clearances.

About Grupo Alfonso Gallardo

Grupo Alfonso Gallardo is Spain's largest corrugated steel manufacturer with 2006 estimated sales in excess of EUR 2.3 bn. The privately owned company operates steel plants in Spain and diversifies in cement production and oil refining.

About Arcelor Mittal

Arcelor Mittal is the world's number one steel company, with 330,000 employees in more than 60 countries. The company brings together the world's number one and number two steel companies, Arcelor and Mittal Steel.

Arcelor Mittal 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 27 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.

Arcelor Mittal key pro forma financials for the first six months of 2006 show combined revenues of euro43,281 billion, with approximate production capacity of 130 million tonnes a year, representing around 10 per cent of world steel output.

Source: Business Wire

More News in this Category