Mittal increasing investment in PolandOctober 8th, 2008 - 3:35 pm ICT by IANS
Warsaw, Oct 8 (IANS) With the recent financial meltdown, steel magnate Lakshmi Mittal may have seen his wealth eroded by a reported 16 billion pounds, but he is very active in Poland and increasing investments, says the online news agency EuAsiaNews. The Mittal-controlled ArcelorMittal, the world’s largest steel producer, has decided to invest 700 million euros ($955 million or Rs.46.5 billion) in its Polish subsidiary ArcelorMittal Poland, the agency said quoting reports published in Polish daily Rzeczpospolita (The Republic).
ArcelorMittal plans to invest in Krakow to increase the capacities of its hot rolling mill there, as well as to construct a new galvanising plant.
Additionally, ArcelorMittal Warszawa, another subsidiary of the group, has began work on a rolling mill on an investment of 84 million euros ($114 million).
Greater demand is stimulating development of more advanced products, and ArcelorMittal has already spent 920 million euros ($1.25 billion) on modernisation and new investments in the past three years.
The investments have taken place in their steel mills at Krakow, Dabrowa Gornicza, Sosnowiec and Swietochlowice.
Mittal has also shown interest in taking over the Huta Labedy Steelworks in Gliwice, once the Polish government decides to sell off this plant. The process of privatisation has already begun and the tender will be issued shortly.
ArcelorMittal controls over 70 percent of the Polish steelworks industry.