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Rediff News  All News  » Business » Mittal to sign MoU for Orissa unit; eyes steel plant in Mexico

Mittal to sign MoU for Orissa unit; eyes steel plant in Mexico

Last updated on: December 21, 2006 19:34 IST

Even as Arcelor-Mittal, the world's biggest steelmaker, signed a memorandum of understanding with the Orissa government on Thursday to set up a 12 million tonne steel plant in the state, the company is also said to be planning to acquire a Mexican steel firm, Sicartsa, for $1.4 billion.

The L N Mittal-led giant is also said to be looking for a tie-up with Grupo Villacero, a steel distribution company in Mexico.

The move is a testimony to the steel company's rising global aspirations and lends it a significant presence in South America.

It also has big plans for India. The high level clearance authority in India has approved the Arcelor-Mittal proposal to establish the Rs 40,000 crore (Rs 400 billion) plant in two phases, paving the way for signing the MoU, official sources said.

The project, of the same size as South Korean steel major Posco's proposed plant near Paradip, would be located in the Patna tehsil of tribal-dominated Keonjhar district.

In the first phase, the company would invest Rs 22,000 crore for a six million tonne capacity and a 750 MW captive power plant.

The company had asked for 8,000 acres of land for the project of which 1000 acres each would be earmarked for the power project and the township.

The project would draw water from the Baitarani river and the raw material linkage had been assured, the sources said.

The joint working group comprising officials of Mittal Steel India Ltd and the state government gave final shape to the project proposal at a meeting here recently.

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