ArcelorMittal has announced plans to construct a new electrical-steelmaking mill in Mexico.

The $600 million facility will produce carbon steel and bars, including rebar, merchant bar quality, and special bar quality products which will chiefly serve the construction and automotive sectors, the company said in a statement released today.

The facility’s electrical-steelmaking equipment will have an annual capacity of one million metric tons of billets; its new bar rolling mill, an annual capacity of 500,000 metric tons.

“This additional production will be directed to the domestic market, mainly to produced high added value steel products but also to support the Government of Mexico’s National Infrastructure Plan and Housing Program,” the company said.

“The new facility will incorporate state-of-the-art technology and steel processing to ensure it is both energy-efficient and environmentally responsible,” the company added. “It will also benefit from best practices that have been developed across the group’s operations.”

“We are delighted to be making this investment which underlines our commitment to the Mexican steel industry,” said Gonzalo Urquijo, a member of ArcelorMittal’s Group Management Board with responsibility for Long Products. “Our plan calls for an investment of $US 600 million. We are presently evaluating potential sites for the mill in Mexico. The decision concerning the final location will be based upon a number of factors including logistics, supply chain, and the availability of sufficient resources to run and operate a plant efficiently and responsibly.”

The commencement of construction will be subject to regulatory approval by the relevant local authorities.

Coke Plant Purchase

Meanwhile, ArcelorMittal has also announced the purchase from Koppers Inc. of the Monessen Coke Plant located in Monessen, Pa., for $160 million.

The plant produced 320,000 metric tons of metallurgical coke in 2007.

“This acquisition is an important step towards increasing our upstream self-sufficiency in metallurgical coke production during a time when metallurgical coke demand on a global scale remains strong,” said Sudhir Maheshware, a member of ArcelorMittal’s Group Management Board with responsibility for M&A, Project and Business Development. “ArcelorMittal currently purchases all of the coke produced by the Koppers’ Monessen Coke Plant.”

AreclorMittal

ArcelorMittal is the world’s largest steel company, with more than 320,0000 employees in more than 60 countries. In 2007 it had revenues of $105.2 billion and crude steel production of 116 million tons, representing around 10 percent of global steel output.

Posted 8/4/2008