October 11, 2008

ArcelorMittal aiming at 200 million tonne output

Reuters reported that ArcelorMittal aims to boost output by two thirds to 200 million tonnes in the long term.

Mr Yves Koeberle an executive of ArcelorMittal on the sidelines of the Metal Bulletin Iron Ore Symposium in Monte Carlo said that, said that the group wants to achieve the target compared to forecast steel production of 120 million tonnes in 2008.

He said that the target has no time frame as yet, but around 30 million tonnes of the expansion is already planned to come from Brownfield expansions.

Mr Koeberle said that "We have already identified a Greenfield project in India adding that there also were prospects for new plants in China and elsewhere in Asia.”

ArcelorMittal uses 150 million tonnes a year of iron ore for its steel plants, accounting for 10% of world consumption. The group buys from 60 suppliers, but it has also said it is seeking to boost self sufficiency in iron ore to over 70% from 45% currently to protect itself against price hikes.