Mittal enters new deal in Poland
LN Mittal signs an agreement with the Polish Govt to buy the remaining share holdings of Polskie Huty Stali for $2.3 bn.india Updated: Jul 29, 2007 20:24 IST
LN Mittal, who acquired 69 per cent of the shares of Polskie Huty Stali in 2004, has signed an agreement with the Polish government to buy the remaining share holdings for $2.3 billion.
With Wednesday's agreement, Mittal Steel will capture 90 per cent of the steel production in Poland. Till recently, it had a share of 70 per cent, reported news agency INEPNEXT.
Mittal Steel has also started a modernising drive to bring state-of-the-art technologies and steel making facilities in its four steel plants in Poland.
The company has already pumped in more than $1 billion in the plants since last year and has commissioned a new colour-coating line in its Swientochlowice plant.
It has re-built and done extensive upgrading of the furnace in Dabrowa Gornicza and modernized the wire-rod mill in Sosnowicw.
Mittal Steel has changed the Polish profile in the world steel market and has become the largest investor in the country.
Indian ambassador to Poland, Anil Wadhwa, said: "Though Mittal is based in London, his Indian origins have helped the profile of India over the years in Poland.
"Now Videocon, Zensar, Tata Consultancy and many other companies have entered the Polish market and Indian investment has grown many fold. In a sense, Mittal is a forerunner in this field."