Mittal Steel not consistent. Despite the scathing reactions of French and Spanish Governments that have held "largely inadequate" Wednesday 6 pages faxed them ("Les Echos" from March 2), the group refuses to pass a comprehensive industrial plan before meeting the departmental services concerned and reminded yesterday evening, in a press release, that he required confidentiality. However, the group is reassuring on the implications for European employment for a rapprochement with Arcelor. Thus he refutes fears that its plants in Eastern Europe low costs threaten certain Western Mills. "Our plants are designed to serve their domestic market, protested the pattern of Mittal Steel Europe, Roeland Baan." The Polish market has a consumption of 10 million tonnes and we produce that 6 million tonnes. "Similarly, our Romanian production is exported in Turkey, not in Western Europe". For observers, the German unit of Arcelor, Ekosthl, likely to suffer from competition from the Polish site of Mittal Steel, object of investments. "Our Polish production could evolve to compete with that of Ekosthl, concedes Julien Onillon, relations responsible for investors of Mittal Steel." But there is no place to be if the approximation is done!
Same insurance bought by Mittal Steel year Lighthouse site last in Ukraine, Krivoryzhstal. This giant steel combine employees 55,000 has mines of iron and coal, so unbeatable costs in view of the outbreak of the price of raw materials, and it rises. "It produces 6 million tonnes of long products for the moment and we think about the option to produce flat steels for the automobile, but it has other possible opportunities that Europe", provides Roeland Baan. The group refused to specify the destination of a future production, indicating that the Middle East or Africa are options.
"This group lies!, storm John Castegnaro, Luxembourg MP and Trade Union ex-leader sitting on the Board of Arcelor.". Prior to the tender offer, it had announced on 23 December to Arcelor its decision to close as soon as possible their Schifflange Luxembourg venture because it was not enough profitable! Since the OPA, the speech has changed.
Mittal Steel is holding out the benefits of a rapprochement with Arcelor. Thus, "we will review the Florange closure", says Roeland Baan about Lorraine site which supplies Gandrange (a French plant of Mittal Steel) and Schifflange, and that Arcelor planned to stop in 2009. "Another option can also be feeding Gandrange from Kryvoryzhstal, which would ensure a competitive supply."
Create a true champion
Mittal Steel also emphasises the interests of Europe, which has need of a steel player strong. The acquisition of Arcelor would give him a presence in Western Europe, and "its expertise in distribution would improve our network to the East, says Roeland Baan." Moreover, only 25 of our sales to the East are carried out by long-term contract, against more than 50 for Arcelor in Western Europe. Combine them would make our more robust portfolio with conditions. "At the same time, Mittal Steel modernizes its device in Eastern Europe. "When these countries have negotiated entry into the Union European, they pledged to invest to ensure the sustainability of their steel and to achieve such productivity of 500 tonnes per employee, against 260 tonnes on average today, said Roeland Baan.". As a buyer of the sites, we achieve these objectives, without fire.
The conditions are therefore met to create a true European champion. A necessity, according to Mittal Steel, the sustainability of the European steel industry... including the threat of the India, the country of origin of the Mittal family! "The Chinese steel is a priori not a threat to Europe, except if the Government subsidizes, because China is important to the high price of iron and coal, and thus has no cost advantage on the countries of the East, Roeland Baan analysis." In contrast, the India a iron and low wages, costs are a potential threat to Europe. Its production could be redirect there each contraction of demand on the Indian market. But the combination of Mittal Steel and Arcelor, by force of its bases in Europe, would be able to regulate the European prices by adjusting its production. "At the same time, Mittal Steel has also currently in India a giant $ 9 billion project to produce 12 million tonnes of steel.