Luxembourg, Friday 29 November
2013 - ArcelorMittal today announces that it has entered into a
50/50 joint venture partnership with Nippon Steel & Sumitomo
Metal Corporation ("NSSMC") to acquire 100% of ThyssenKrupp Steel
USA ("TK Steel USA") from ThyssenKrupp for an agreed price of
US$1,550 million.
TK Steel USA is a steel processing plant situated
in Calvert, Alabama, with a total capacity of 5.3 million tonnes
including hot rolling, cold rolling, coating and finishing lines.
The transaction - which is expected to deliver
US$60 million of annual synergies - will be financed through a
combination of equity and debt at the joint venture level.
The transaction includes a six-year agreement to
purchase two million tonnes of slab annually from TK CSA, an
integrated steel mill complex located in Rio de Janeiro, Brazil,
using a market-based price formula. TK CSA has an option to extend
the agreement for an additional three years at more favourable
terms to the JV, compared with the initial time period.
The remaining slab balance will be sourced from
ArcelorMittal plants in the US, Brazil and Mexico.
ArcelorMittal will be responsible for marketing the product
on behalf of the JV. The price ArcelorMittal will receive for its
slabs will be determined by the volume, price and cost performance
of the JV.
The automotive market is an identified franchise
business for ArcelorMittal and the Calvert facility will complement
ArcelorMittal's existing auto business in the United States. The
company's current facilities for the auto segment in the US are at
high levels of capacity utilisation and the NAFTA automotive market
is expected to show an increase in vehicle production of
approximately 15% over the next decade.
This acquisition will also strengthen
ArcelorMittal's position in supplying the NAFTA energy industry,
which is expected to demonstrate growing demand for energy pipe
& tube products due to increases in oil and natural gas
exploration and production.
ArcelorMittal and NSSMC have a proven track record
of successful collaboration for the auto industry in North America
through the I/N Tek and Kote joint ventures, which were established
in 1987 and are located in New Carlisle, Indiana.
Commenting, Mr Lakshmi N.
Mittal, chairman and CEO of ArcelorMittal, said:
"This is an important strategic acquisition for
ArcelorMittal. The Calvert plant is the most modern finishing
facility in the world. It ideally complements our existing
operations in the United States and the Americas, and will improve
our ability to supply customers in the automotive and other markets
in the Southern United States, where we do not have comparable
facilities today. We have worked successfully with NSSMC in other
joint ventures in the US for years and look forward to extending
the collaboration."
The transaction is subject to regulatory approvals
in certain markets.
Press
conference call
Please note, there will be a
press call at 1300GMT on Sunday 1 December, hosted by Mr Lakshmi
Mittal, chairman and CEO of ArcelorMittal.
The dial-in numbers are as
follows:
From United Kingdom |
Toll free: 08001693059 |
or national access: +44
2079700006 |
From USA |
Toll free:18008146417 |
or national access: + 1
2155991757 |
From France |
Toll free: 0800917772 |
or national access: +33 170707578 |
From Germany |
Toll free: 08009646526 |
or national access: +49
6940359700 |
From Spain |
Toll free: 900994921 |
or national access: +34 914140992 |
From Luxembourg |
Toll free: 80024686 |
or national access: +352 24871048 |
From Brazil |
Toll free: 0800 891 4821 |
or national access: +55
2127306901 |
From India |
Toll free: 000 800 100 7028 |
|
Participant access
code: 107444#
The conference call will include
a brief question and answer session, and a simultaneous
presentation will be available at
http://interface.eviscomedia.com/player/1058/index.en.html
Analyst
conference call
There will be a conference call
for members of the investment community at 1430GMT on Monday 2
December, hosted by ArcelorMittal senior management.
The dial-in numbers are as
follows:
From United Kingdom |
Toll free: 08001693059 |
or national access: +44
2079700006 |
From USA |
Toll free:18008146417 |
or national access: + 1
2155991757 |
From France |
Toll free: 0800917772 |
or national access: +33 170707578 |
From Germany |
Toll free: 08009646526 |
or national access: +49
6940359700 |
From Spain |
Toll free: 900994921 |
or national access: +34 914140992 |
From Luxembourg |
Toll free: 80024686 |
or national access: +352 24871048 |
From Brazil |
Toll free: 0800 891 4821 |
or national access: +55
2127306901 |
From India |
Toll free: 000 800 100 7028 |
|
Participant access
code: 871507#
The conference call will include
a brief question and answer session and a simultaneous
presentation. Details will be available on Monday 2 December
at corporate.arcelormittal.com/investors.
Forward-looking statements
This document may contain
forward-looking information and statements about ArcelorMittal and
its subsidiaries. These statements include financial projections
and estimates and their underlying assumptions, statements
regarding plans, objectives and expectations with respect to future
operations, products and services, and statements regarding future
performance. Forward-looking statements may be identified by the
words "believe," "expect," "anticipate," "target" or similar
expressions. Although ArcelorMittal's management believes that the
expectations reflected in such forward-looking statements are
reasonable, investors and holders of ArcelorMittal's securities are
cautioned that forward-looking information and statements are
subject to numerous risks and uncertainties, many of which are
difficult to predict and generally beyond the control of
ArcelorMittal, that could cause actual results and developments to
differ materially and adversely from those expressed in, or implied
or projected by, the forward-looking information and statements.
These risks and uncertainties include those discussed or identified
in the filings with the Luxembourg Stock Market Authority for the
Financial Markets (Commission de
Surveillance du Secteur Financier) and the
United States Securities and Exchange Commission (the "SEC") made
or to be made by ArcelorMittal, including ArcelorMittal's Annual
Report on Form 20-F for the year ended December 31, 2012 filed with
the SEC. ArcelorMittal undertakes no obligation to publicly update
its forward-looking statements, whether as a result of new
information, future events, or otherwise.
About
ArcelorMittal
ArcelorMittal is the world's
leading steel and mining company, with a presence in more than 60
countries and an industrial footprint in over 20 countries. Guided
by a philosophy to produce safe, sustainable steel, we are the
leading supplier of quality steel in the major global steel markets
including automotive, construction, household appliances and
packaging, with world-class research and development and
outstanding distribution networks.
Through our core values of
sustainability, quality and leadership, we operate responsibly with
respect to the health, safety and wellbeing of our employees,
contractors and the communities in which we operate.
For us, steel is the fabric of
life, as it is at the heart of the modern world from railways to
cars and washing machines. We are actively researching and
producing steel-based technologies and solutions that make many of
the products and components we use in our everyday lives more
energy-efficient.
We are one of the world's five
largest producers of iron ore and metallurgical coal and our mining
business is an essential part of our growth strategy. With a
geographically diversified portfolio of iron ore and coal
assets, we are strategically positioned to serve
our network of steel plants and the external global market. While
our steel operations are important customers, our supply to the
external market is increasing as we grow.
In 2012, ArcelorMittal had
revenues of $84.2 billion and crude steel production of 88.2
million tonnes, while iron ore production reached 55.9 million
tonnes.
ArcelorMittal is listed on the
stock exchanges of New York (MT), Amsterdam (MT), Paris (MT),
Luxembourg (MT) and on the Spanish stock exchanges of Barcelona,
Bilbao, Madrid and Valencia (MTS).
For more information about
ArcelorMittal please visit: www.arcelormittal.com.
About
ArcelorMittal USA
Part of ArcelorMittal, the
world's leading steel and mining company, ArcelorMittal USA is one
of the largest steelmakers in North America, employing more than
18,000 hardworking men and women at 25 operations across the United
States. ArcelorMittal USA's product portfolio includes a broad
range of flat, long and tubular products serving the automotive,
construction, pipe and tube, appliance, container and machinery
markets.
For more information about
ArcelorMittal USA please visit:
www.usa.arcelormittal.com.
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Contact information ArcelorMittal
Investor Relations |
|
|
|
Europe |
+ 352 4792 3198 |
Americas |
+1 312 899 3985 |
Retail |
+ 44 203 214 2417 |
SRI |
+ 44 203 214 2854 |
Bonds/Credit |
+ 33 171 92 10 26 |
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Contact information ArcelorMittal
Corporate Communications |
|
E-mail: |
press@arcelormittal.com |
Phone: |
+352 4792 5000 |
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ArcelorMittal Corporate
Communications |
|
|
|
Sophie Evans (head of media relations) |
+44 20 3214 2882/+44 7825 595 849 |
Laura Nutt |
+44 20 7543 1125 |
|
|
United Kingdom |
|
Maitland Consultancy: |
|
Rebecca Mitchell |
+ 44 7951 057 351 |
|
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France |
|
Image 7: |
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Sylvie Dumaine / Anne-Charlotte Creach
United States
Bill Steers, ArcelorMittal Americas
Mary Beth Holdford, ArcelorMittal USA |
+ 33 1 5370 7470
+1 312 899 3817
+1 330 659 9121 |
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: ArcelorMittal S.A. via Globenewswire
HUG#1746869
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