ArcelorMittal and Marcegaglia submit offer for Ilva
(Thomson Reuters ONE) -
ArcelorMittal S.A. /
ArcelorMittal and Marcegaglia submit offer for Ilva
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6 March 2017
* Investment commitments of over ?2.3 billion in addition to the purchase
price
* Intention to produce 9.5 million tonnes of finished products
* Commitment to build research and development centre in Taranto
* Commitment to implement new low-carbon steel-making technologies
* Letter of intent to join consortium signed with Banca Intesa SanPaolo
ArcelorMittal and Marcegaglia announce they have today submitted an offer for
Ilva, the Italian steel-making company.
Highlights of the offer are as follows:
Intention to produce 9.5 million tonnes of finished products
* Increase production from current levels to 6 million tonnes a year by 2018
from three blast furnaces currently in operation, in compliance with the AIA
* Maximise finishing capacity by bringing up to 4 million tonnes of slabs and
hot rolled coil (HRC) to Ilva
* Intention to increase primary production to 8 million tonnes plus over the
longer term, supplemented by 2 million tonnes of additional slabs and HRC
* Utilise new low-carbon technologies including carbon capture and
utilisation, and low-impact steelmaking
Investment commitments of more than ?2.3 billion in addition to the purchase
price
* Environmental capex of more than ?1.1 billion, including remediation capex,
to reach optimal environmental performance in key areas including air
emissions and water treatment
* Industrial capex of more than ?1.2 billion, including catch-up capex for
delayed maintenance and major capex program for blast furnaces and steel
plants, including reline of blast furnace 5
* Supported by significant available credit lines of more than ?5 billion
Expand product range with targeted investment in high quality products
* Develop Ilva's product range with high quality products for automotive,
construction and energy segments
* Leverage ArcelorMittal's extensive European sales and marketing network
* Leverage ArcelorMittal's technical automotive team to develop homologations
for demanding OEM segments
* Strong relationship with key customer guaranteed with Marcegaglia as
shareholder
* Restore role of leading supplier of steel to the Italian market and beyond
Invest in new research and development centre in Taranto
* Dedicated R&D centre to be launched with initial investment of ?10 million
* First objective will be to focus on environmental, process and product
technologies that will help Ilva accelerate the implementation of its
environmental, industrial and commercial plans
Programme to reach best-in-class performance levels
* Benchmark against ArcelorMittal plants worldwide to identify areas of
largest opportunity and deliver process and productivity improvements
* Inject production know-how and specialist support to improve in priority
areas
* Ensure best-in-class production system in place covering competitiveness,
quality, safety and environment
Long-term commitment to the community
* Consultation exercise to be run with the local community to understand areas
where community would most value support
* Aim to become an active and welcome member of the community, based on a
culture of transparent two-way dialogue
* Employment opportunities in the wider ArcelorMittal group
Commenting, Mr Lakshmi N. Mittal, chairman and chief executive, ArcelorMittal,
said:
"We believe the ArcelorMittal and Marcegaglia consortium is the best partner for
Ilva. Our managers and engineers have been studying the company for some years
and well understand what needs to be done to turnaround the performance and
ensure a strong, safe and sustainable future for the employees of Ilva and the
people of Taranto. We are confident that we have the right industrial plan, the
right environmental plan and the right commercial plan to support the
transformation of Ilva into a company that will once again be a jewel of the
Italian manufacturing landscape, adding value to the Italian economy and all
stakeholders."
"In the first instance, primary production is limited to 6 million tonnes until
the AIA is fully implemented. However, we recognise the importance of
maximising production and maximising employment while minimising the
environmental footprint of the plant. That's why we intend to run the finishing
capacity full by importing additional slab and, over the longer term, ramp up
primary production to 8 million tonnes plus, utilising low impact steelmaking
technology."
Aditya Mittal, CEO of ArcelorMittal Europe and group CFO, said:
"We are very excited about this opportunity to partner with Ilva. At the heart
of our plan is an investment commitment of more than two billion euros. This
will transform Ilva's environmental performance, as well as improve the
stability and efficiency of the operations and re-orientate production towards
the high added value products that must be Ilva's future. The
ArcelorMittal/Marcegaglia consortium brings the benefit of established contacts
with European customers which will support Ilva's swift integration into the
European customer landscape and re-establish its position as the supplier of
choice for Italian customers."
Antonio Marcegaglia, chairman and CEO, Marcegaglia, said:
"As an Italian, it has been sad to watch the decline of this great company in
recent years and we are excited to have the chance to contribute to a new
renaissance of this Italian steel icon."
"Marcegaglia wanted to partner with ArcelorMittal because we were convinced the
combination of operational and financial excellence with a deep knowledge of the
market represents the most powerful solution for the renaissance of Ilva and its
people. Marcegaglia has worked closely with ArcelorMittal over the years - we
know how they do business, integrating sustainable development and corporate
responsibility into everything they do - and we believe this approach is what
Ilva needs. It will be important to re-establish dialogue and trust with the
local community and to demonstrate to them that Ilva can operate safely and
responsibly within their community. This will be a key priority for us from
day one."
Ends
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 people use in their 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 2016, ArcelorMittal had revenues of $56.8 billion and crude steel production
of 90.8 million tonnes, while own iron ore production reached 55.2 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/
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Source: ArcelorMittal S.A. via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 06.03.2017 - 14:31 Uhr
Sprache: Deutsch
News-ID 528356
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Kategorie:
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