Arcelor Mittal Chairman and Chief Executive Officer Lakshmi Mittal
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Arcelor Mittal to Construct a Plant in Leningrad Region
World steel giant Arcelor Mittal intends to build in St. Petersburg’s Leningrad region a maker of car pressed parts. The new facilities will be located near Eurodisk, where Italian Magnetto bought out 50 percent in mid-April. Arcelor Mittal is a co-owner of Magnetto and the analysts say it may invest ˆ100 million in the project.
The plans of Arcelor Mittal to construct a plant in the Phosphorite industrial area were reported by Vitaly Balitsky, the chief expert of the investment department at Kingisepsky district of the Leningrad region. The company intends to arrange production of automotive bodies, Balitsky specified. The information was confirmed by the Leningrad region’s authorities.
“The company is interested in constructing a metal processing plant in the Leningrad region, to be more precise in Phosphorite industrial area,” said Leningrad region’s Deputy Vice Governor Sergei Kuklin. Arcelor Mittal declined to comment, reasoning those plans hadn’t been announced officially.
The plans of Arcelor Mittal for building a plant in the Leningrad region are no secret to Sergei Bodrunov, the president at St. Petersburg Association of Auto-Component Manufacturers. According to Bodrunov, Arcelor Mittal could be late in the market, as quite a number of projects for metal pressing parts have been voiced already. Amid them are the projects of Magna (ˆ80 million), Stadco (ˆ208 million) and Magnitogorsk Iron & Steel Works (ˆ80 million). “Given those costs, I think Arcelor Mittal will invest at least ˆ100 million,” Bodrunov supposed.
In the Leningrad region, they say off the record, that Eurodisk plant (that makes pressed disks for cars) is aggressively lobbying Arcelor Mittal. Eurodisk announced the sale of 50 percent to Italian Magnetto in April. Eurodisk briefer Andrei Abashin confirmed his company’s cooperation with Arcelor Mittal, but declined to comment on the new project.
www.kommersant.com
All the Article in Russian as of May 23, 2008
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