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ArcelorMittal decided to set up a steelmill in Karnataka

Published: 25 Nov 2009 01:14:28 PST

Nov. 25 MetalBiz--ArcelorMittal announced on November 23 that it has started the contact with India’s Karnataka government concerning building the steelmill. It also noted that this steelmill is another greenbelt project, while previous two projects in Orissa and Jharkhand did not make the progress yet due to the land issue.

ArcelorMittal has submitted the project application to Karnataka government, the steelmill’s investment details including cost, production capacity and timetable will go public in three or four months, that is, they will released after the completion of the related technological research. Insiders unveiled that the annual production capacity of Karnataka steelmill is 6mln tons with the total investment of around 300bln rupees. If the information is precise, ArcelorMittal has invested the accumulative capital of around 1,000bln rupees in three project covering Orissa, Jharkhand and Karnataka. However, ArcelorMittal previously disclosed that it has the intention of choosing the site to build the steelmill in other region of India.

Due to the pick-up of steel demand, ArcelorMittal made the profit of U.S.$903mln in September, which finalizes the loss trend for the successive three months, but there is still a huge gap over last year’s profit, U.S.$3.82bln