New Delhi: LN Mittal, Chairman and CEO of world’s largest steel company Arcelor-Mittal is now eyeing as much as 12 per cent share of the global steel businesses, he revealed his plans to acquiring more businesses over the next 3-5 years.
Right now in terms of world production, Mittal is producing about 10 per cent. But over the next 3-5 years the Arcelor-Mittal production may cater up to 12% of world’s steel demand.
“With the Arcelor-Mittal merger, which was done last year, the whole steel industry is changing," he said.
"Today, we are doing only about 10% of the world’s production. But I believe that there should be at least one company who should be producing upto 200 million tonnes per year and there should be few companies who should be producing at least 100 million tonnes. So that is the direction the steel industry should go for,” added Mittal.
Arcelor Mittal and Nippon Steel Corp, the world's two biggest steelmakers are in talks to expand their alliance in North America and may co-produce the metal in Europe and Asia.
Arcelor has three times Nippon Steel's production capacity, while the Tokyo-based company has relationships to supply Japan's expanding carmakers.
Arcelor and Nippon have a high market share in high-grade steel, so they don't want to fight too much, rather they want to share the market, say analysts.
The Arcelor-Nippon agreement to co-produce steel in Europe and Asia does not include provisions prohibiting takeover attempts, the Nikkei reported, citing an unnamed Arcelor official.
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