According to sources Arcelor Mittal said that its subsidiary Arcelor Mittal India Pvt Ltd (AMIPL) has submitted an offer for Essar Steel India Limited in line with the corporate insolvency resolution process for Indian steel company. Meanwhile in its offer, AMIPL set out a detailed industrial plan for the debt laden steel maker to address its operational issues and aimed at improving its performance and profitability.
Accordingly Essar provides a compelling opportunity for us to enter the high growth Indian steel market. The offer submitted today by AMIPL includes a detailed investment plan to address operational issues in Essar's existing asset base. Arcelor Mittal Chairman and CEO Lakshmi Mittal said "With their industry expertise and renowned operating prowess, they believe that they are uniquely equipped to implement a successful turnaround which would be beneficial to its stakeholders".
As per the statement "Essar Steel is an integrated flat steel
producer and has a crude steel capacity of 9.6 million tonnes per annum,
although the current maximum achievable crude steel production level is 6.1
million tonnes per annum, due to a bottleneck in the steel making and casting
process".
