Mittal Steel Signs Letter of Intent to Build Continuous Caster

Mittal Steel Company N.V. has announced that its Polish subsidiary, Mittal Steel Poland, has signed a letter of intent to construct a new continuous caster at Dabrowa Gornicza.

This investment forms a significant part of the PLN 2.4 billion capital expenditure programme agreed with the Polish Ministry of State Treasury under the terms of the privatisation agreement for Polskie Huty Stali. The announcement follows earlier agreements, finalised in December 2004, to modernise Mittal Steel Poland’s wire rod mill in Sosnowiec, and install a colour coating line in Swietochlowice, for a total consideration of approximately PLN 260 million.

The letter of intent to build the new continuous caster has been signed with the German company SMS Demag, who will be the turnkey supplier for the project. Contracts are expected to be finalised next month, with the project expected to be on-line by the end of 2006.

The new continuous caster will significantly improve the yield of steel produced, ultimately leading to the production of higher quality slabs. It will also enable Dabrowa Gornicza to stop the outdated route of ingot casting, bringing numerous environmental benefits.

Commenting on the signing of the agreements, Frantisek Chowaniec, CEO and Chairman of the Management Board of Mittal Steel Poland said:

“Signing the letter of intent with SMS Demag provides further evidence that we are committed to fulfilling our capital expenditure programme in Poland. These investments are vital to the future success of Mittal Steel Poland, and our final investment commitment is likely to significantly exceed the PLN 2.4 billion figure established as part of the privatization agreement. It is important to remember that prior to privatisation PHS was heavily in debt and struggling to survive. We have already made significant progress at revitalising the company and it is now a stable and reliable producer of steel. These investments will help us to push on and achieve our goal of creating one of Europe’s leading steel producers.”

Mittal Steel Poland is simultaneously holding talks on implementing the other key investment – a hot rolling mill in Cracow.

http://www.mittalsteel.com/

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