ArcelorMittal leaves Italy and invests 6.15 billion in India

While in Italy ArcelorMittal has everything ready to leave the former Ilva plants on December 4, in India the Supreme Court has given the green light to the multinational steel company to buy the Indian steel group Essar Steel for a total value of 6.15 billion EUR.

A purchase transaction that ArcelorMittal is conducting with the Japanese company Nippon Steel, in a joint venture that adds another element to the Mittal strategy.

To remember that Mittal for the former Ilva would have had to invest 4.2 billion euros.

ArcelorMittal leaves Europe and invests in India

ArcelorMittal abandons Italy, but also Europe since other plants, like in Poland, will reduce their production capacity in these weeks.

However, the acquisition of Essar Steel seems to have strictly to do with the change of strategy on the Taranto plant, since according to the information gathered, the Essar group would employ 3,800 employees against Taranto's 10,700. At the same time the production capacity of the Indian plants would be higher, the Hazira plant alone would have a production capacity of 10 million tons against Taranto's 4 million tons which would have become 8 million at full capacity.

ArcelorMittal's clear strategy

ArcelorMittal had asked the Italian government 5,500 redundancies which would have reduced the number of Taranto workers to 5,200. However, this number is higher than the number of workers employed by the Essar Steel plants, but if you read this request in light of the acquisition of the Indian steel group, everything appears clearer.

In India, then, the salary of workers is much lower.

Meeting with the unions

ArcelorMittal's managing director in Italy Lucia Morselli met with the unions last night, but the meeting did not go well because the CEO did not receive the proxy to negotiate. His only job is to shut down the plants, he has no other duties.