ArcelorMittal eager to set up JV with China

Jul. 6, 2009 (China Knowledge) - ArcelorMittal is eager to set up a joint venture (JV) with Chinese enterprises to help resolve China's iron ore supply issue, said Roland Verstappen, global vice president of the company on the sidelines of the Global Think Tank Summit held in Beijing.

ArcelorMittal owns abundant iron ore resources and China is the largest iron ore importer, so there is great potential for cooperation, said Verstappen, adding that discussion of a JV with Chinese enterprises will not start soon.

Verstappen said that due to the disapproval of the Chinese government, ArcelorMittal failed to acquire China Oriental Group Co Ltd<0581>, but that the company will seek opportunities to realize the acquisition in the future.

ArcelorMittal is now in talks with Hunan Valin Steel Co Ltd<000932> regarding two new cooperation projects, which mainly involve automobile steel and electric steel, said Verstappen. ArcelorMittal, the world's largest steel producer by output, holds a 33% stake in Hunan Valin.

Verstappen predicted that the global steel industry will see demand decline between 10% and 15% by the end of this year, but said that China's steel production is expected to increase this year.