The Hindu Business Line : ArcelorMittal working with Govt in energy sector

Mr Aditya Mittal, Chief Financial Officer, ArcelorMittal (left), with young professionals at the CII's interactive session on 'Creating Global Champions' in Hyderabad on Monday . - P.V. Sivakumar

Our Bureau

Advertisement

Hyderabad, March 3

Is global steel giant ArcelorMittal diversifying into the energy sector, especially oil and gas? Asked this question, Mr Aditya Mittal, the Chief Financial Officer of the company said: “India is an energy-deficient country and we are already working with the Government.”

The London-based, ArcelorMittal has 27 manufacturing plants across the globe. China and India figure prominently in the company’s global business strategy, he said, not explaining the diversification into the energy sector.

Speaking on ‘Creating Global Champions’ in a special session organised by the Confederation of Indian Industry (CII) here on Monday, Mr Mittal said Asia at present would account for half of the global steel consumption. “The steel consumption in China is 500 million tonnes (mt) per annum with a growth of 10 per cent. We have a well-defined China strategy and have recently signed a pact to acquire a company in China,” he said.

Observing that Indian steel consumption was much lower than that of developed countries, Mr Mittal said “There is tremendous scope for India in steel. We have a vision for the next 20 years and will be a player here too.”. The coal mine allocation for the two plants in Orissa and Jharkhand were done and the ground-breaking would soon be done, he said.

On the rising steel prices, Mr Mittal said the reason was increased prices of raw materials.

“Since 2004, however, the steel industry has stabilised the prices to a greater extent,” he said, adding that the market was not consolidated enough to decide raw material prices. ArcelorMittal has a market share of 10 per cent globally.

“The top five steel producers in the world have a combined share of 20 per cent,” he observed.

More Stories on : Power | Diversification | Steel

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page