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ArcelorMittal Submits Offer For Essar Steel India - Quick Facts

Integrated steel and mining company ArcelorMittal (MT) said that its subsidiary ArcelorMittal India Private Limited or AMIPL has submitted an offer for Indian steel company Essar Steel India Limited, in-line with the corporate insolvency resolution process for Essar.

In its offer, AMIPL set out a detailed industrial plan for Essar aimed at improving its performance and profitability as well as ensuring it can participate in the anticipated growth of steel demand in India.

ArcelorMittal noted that the offer also highlights the extensive experience and track record of the group in the successful acquisition and integration of under-performing assets, which AMIPL believes would be of considerable value to Essar. Essar would have access to the technical expertise and knowledge from across the group.

Aditya Mittal, Group CFO and CEO ArcelorMittal Europe, said, "This opportunity aligns with the group's strategy of selectively investing in attractive projects to maximize long-term shareholder value. India is expected to be the world's fastest growing economy over the next decade and as the economy grows its steel intensity will also increase."

Essar Steel is an integrated flat steel producer. Its main production facility is in Gujarat. It has a nameplate crude steel capacity of 9.6 million tonnes per annum, although the current maximum achievable crude steel production level is 6.1 million tonnes per annum, due to a bottleneck in the steelmaking and casting process.

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