ArcelorMittal has announced that it had been awarded a license from the Industrial Development Authority (IDA) of Egypt's Ministry of Trade and Industry to construct a steel plant in Egypt. The license was auctioned in a competitive bidding process and ArcelorMittal's winning bid was L.E. 340 million (approximately US$ 60 million).
Under the terms of the license, the plant will produce 1.6 million tons of steel using DRI technology, and 1.4 million tons of billets through the Electric Arc Furnace Route.
Construction of the plant, which will be located close to the Northern Red Sea Coast, is expected to start in 2009.
Aditya Mittal, CFO and Member of the ArcelorMittal Group Management Board, commented: "We are pleased to have been successful in this auction. This forms part of our three-dimensional growth strategy to look for opportunities to expand our business in the three key areas of geography, product and value chain. The Middle East is a growth market for the steel industry and it makes sense for ArcelorMittal to expand its presence in the region."