ArcelorMittal plans to set up facility in Iraq
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- Published 17.03.10
Calcutta, March 16: ArcelorMittal — the world’s largest steel maker — has decided to invest in Iraq.
The company today announced its plan to build a rebar plant in Kurdish-administered northern Iraq in partnership with Turkish firm Dayen. Rebar is a type of steel bar.
The Luxembourg-based firm said $100-130 million (Rs 600 crore) would be invested in the plant to produce at least 250,000-tonne rods a year.
Mittal will use electric furnace to manufacture rebars in Sulaimaniyah.
ArcelorMittal has decided to commence work during the second quarter of this year and start production in late 2011.
“There are many opportunities for ArcelorMittal to assist in the development of the country,” board member Christophe Cornier said.
“There is a great demand for steel products in the local construction industry,” he said.
Rebar is used in construction. There will be no dearth of demand in the war-ravaged country, which is limping back to normalcy under the shadow of terror strikes.
ArcelorMittal’s decision to invest in Iraq signals the willingness of international firms to invest in the country.
The Lakshmi Mittal-owned firm, however, is no stranger to troubled and difficult terrains. For instance, it is one of the largest investor in strife-torn Liberia in Africa.
The company has invested $1.5 billion in the country to develop a large iron-ore deposit.
It is one of the earliest movers in eastern Europe and the Commonwealth of Independent States after the collapse of the Soviet Union, which led to social and economic turmoil. These investments have turned out to be profitable for the company over the years.