ArcelorMittal builds a steel plant in Iraq
March 16, 2010
ArcelorMittal moves in Iraq. The global steelmaker said in a statement released on Tuesday signed a memorandum of understanding with the Turkish group Dayen to create a joint company. The company will build a plant producing steel with an electric oven at Sulaymaniyah in northern Iraq. The amount of total investment is between 100 million and 130 million dollars, between 73 million and 94 million euros.
The group said that construction should commence in the second quarter 2010 and production in the fourth quarter of 2011 at the earliest.The factory should produce, in its initial phase, 250,000 tons of reinforcing steel per year, rising to 500,000 tonnes thereafter.
The action turns on the Stock Exchange
"We believe we can seize many opportunities to contribute to national development," said Christophe Cornier, a member of senior management.There is a significant demand for steel products for the local sector of the construction, we intend to meet, in close collaboration with our partner Dayen and local government in northern Iraq.
Alongside the publication of its results in February, ArcelorMittal had said that its capital spending would be increased from 43% to $ 4 billion in 2010, and used to maintain its plants and projects of 'expansion in mining.
At the Paris Bourse, the action ArcelorMittal makes a significant reversal: after one of the few values down to the opening, it rose 1.82% to 31 euros, the second largest increase deu CAC 40 . And despite the fact it has been a decline of recommendation from "buy" to "hold" by analysts of the bank Royal Bank of Scotland.
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