Arcelor wants to expand in India
The L'bourg-based steel firm, the target of a takeover bid by Mittal, is already working with Tata to make cars.india Updated: Feb 20, 2006 11:21 IST
Luxembourg-based steel giant Arcelor, the target of a takeover bid by Netherlands-based Mittal Steel, wants to expand in India, notably by teaming up with auto part manufacturer JBM group, a spokesman said on Monday.
With its abundant natural resources, India is a "strategic priority" for Arcelor, said the spokesman.
Arcelor, the world's second largest steel producer, is already working with Indian conglomerate Tata to make cars.
"To complete this partnership, Arcelor is in discussion with an Indian partner, car component manufacturer JBM group, with the aim of creating a car welding plant together in Delhi or Puna," the spokesman said.
India "is one of the first countries on Arcelor's strategic agenda" especially because of "the country's wealth of natural resources, notably iron ore," he added.
Arcelor chief Guy Dolle said on Thursday that his group would continue to grow in countries where its presence is now minimal or non-existent, especially China, India, Russia and eastern European states.
The company wants to double its annual steel output to 100 million tonnes within five years.
In October, Mittal Steel, headed by Indian businessman Lakshmi Mittal, announced a $9 billion investment in a steel project in India.