India, China focus area for new entity

Mittal has plans to set up a $9-billion steel plant in Jharkhand and already owns steel plants in China. Arcelor, on the other hand, does not have any presence till date in these two markets. In the recent days, Arcelor did say that it will look at emerging markets like India and China for investment.

India is forecast to raise its steel production capacity to 65 million tonnes by 2011 or 2012 from 38 million tonnes now. Easy availability of raw materials and a burgeoning domestic market have drawn global majors such as Mittal Steel and POSCO to India. Last month, Nisshin Steel Co, Japan’s fifth-biggest steel maker, said it was considering setting up a steel plant in India.

Mittal CFO Aditya Mittal, son of Lakshmi, said he expected the deal to close by mid-July. He said he would be on the management board but would not become CEO. Arcelor is to nominate the new CEO.