Meeting to discuss ArcelorMittal and SAIL automotive joint venture in London

Release Date: 
Tue, 08/30/2016 - 12:00

Meeting to discuss ArcelorMittal and SAIL automotive joint venture

  • Discussions progressing well
  • JV on track to be established within forecast timeframe

30 August 2016 – On Tuesday 30th August, ArcelorMittal welcomed Minister Chaudhary Birender Singh, Union Minister of Steel of the Government of India, Mr P. K. Singh, Chairman, SAIL and the Indian Government’s Joint Secretary Ministry of Steel, Mr Sunil Barthwal, to its London offices for discussions regarding the proposed US$1 billion automotive steel joint venture (‘JV’) between ArcelorMittal and SAIL. Mr Lakshmi Mittal, Chairman and CEO, Mr Aditya Mittal, group CFO and CEO ArcelorMittal Europe and Mr Brian Aranha, Executive Vice President and head of global automotive, who is leading the joint venture discussions on behalf of ArcelorMittal, attended the meeting along with other members of senior management.
ArcelorMittal and SAIL signed a Memorandum of Understanding in May 2015 to explore the possibility of setting up a state-of-the-art automotive steel manufacturing facility under a JV arrangement in India.
The proposed JV will construct world-class facilities for manufacturing automotive steel that will offer technologically advanced steel products for India’s rapidly growing automotive sector. The hot rolled input products for the proposed facility would be supplied by SAIL’s new state-of-the-art hot strip mill in Rourkela, Odisha, thus making the entire value chain indigenous.
The project’s Joint Working Group, which was established following the signing of the MoU, has completed the major part of the project’s Feasibility Report.
India is forecast to become the world’s third largest automobile manufacturing nation by 2026, with passenger vehicles likely to grow from approximately 3 million units today to over 7 million units in the next 10 years. In response to the growing level of automotive demand, and supported by the Indian Government’s ‘Make In India’ programme which has been designed to transform India into a global manufacturing hub, automotive manufacturers have been establishing an increased presence in the country.

Sail team

Photo, from left to right: Mr Devinder Arora, GM, ArcelorMittal India; Mr Vijay Goyal, CFO ArcelorMittal Europe; Mr Brian Aranha, Executive vice president and head of global automotive, ArcelorMittal; Mr Aditya Mittal, Group CFO and CEO ArcelorMittal Europe; Mr Sunil Barthwal, Indian Government’s Joint Secretary Ministry of Steel; Minister Chaudhary Birender Singh, Union Minister of Steel of the Government of India; Mr Lakshmi N Mittal, Chairman and CEO, ArcelorMittal; Mr P.K.Singh, Chairman, SAIL; Mr Sunil Kumar, First Secretary, High Commission of India; Mr Ganesh Vishwakarma, Director, Projects and Business Planning, SAIL; Mr Anirban Dasgupta, GM, Chairman SAIL Secretariat; Mr Sanjay Sharma, CEO, ArcelorMittal China and India.

About ArcelorMittal

ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and an industrial footprint in 19 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 peopleuse in theireveryday 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 2015, ArcelorMittal had revenues of US$63.6 billion and crude steel production of 92.5 million tonnes, while own iron ore production reached 62.8 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: http://corporate.arcelormittal.com/

About SAIL

Steel Authority of India Ltd is India’s largest steel maker and among the top Government owned companies conferred with the prestigious ‘Maharatna’ status. Government of India currently owns 75% of SAIL’s shares, the rest being held by FIs and individuals. With a turnover of about US $ 9 billion employing around 85,000 people across India; SAIL owns and operates 5 integrated steel plants at Bhilai, Durgapur, Bokaro, Rourkela and Burnpur, 3 special steel plants and ferro-alloy & refractory manufacturing units. SAIL is also the second largest producer of iron ore in India and meets 100% requirement from captive mines.
SAIL offers the maximum array of steel products amongst all Indian manufacturers in the country. SAIL offers a wide range of products in mild, special and alloy steel categories in around 1000 grades and 5000 dimensions.
Currently SAIL is on the verge of completing its modernization & expansion programme at an expenditure of around USD $12 Billion which will enhance the company’s saleable steel  capacity to around 20 million tonnes per annum from the current 12 million tons. Last year Prime Minister of India – Mr Narendra Modi dedicated SAIL’s modernized and expanded units in IISCO Steel Plant (ISP) & Rourkela Steel Plant (RSP) to the nation.
Post expansion SAIL will also add a number of new products to its basket which will cater to the needs of India’s growing infrastructure and manufacturing sector. SAIL has also drawn up a strategic plan to increase its hot metal capacity to 50 million tons per annum which will put SAIL amongst the top steel companies globally.
SAIL’s business philosophy encompasses a triple bottom line approach covering the economic, environmental and social dimensions reflecting SAIL’s commitment to build natural, human and societal capital and contribute its might in adding strength to India’s development and progress. The tagline of the company ‘There’s a little bit of SAIL in everybody’s life’ symbolizes the fact that in last five decades it has grown from strength to strength and the SAIL brand is well entrenched in peoples’ minds.
For more information about SAIL please visit:http://www.sail.co.in/ 

Contact information ArcelorMittal Investor Relations

 

 

 

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+35247923198

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+13128993985

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Contact information ArcelorMittal Corporate Communications

 

E-mail:

press@arcelormittal.com

Phone:

+442076297988

 

 

ArcelorMittal Corporate Communications

 

Sophie Evans
Paul Weigh

+442032142882
+442032142419

 

 

Steel Authority of India Limited

 

Rakesh Kumar Singhal (General Manager, Corporate Affairs)

+91-11-24367211, 24300480
Mobile: +919910055630
rksh.singhal@gmail.com

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