Mittal Steel Announce Expected Savings in the USA Following Completion of ISG Merger

Mittal Steel announced today the following savings that it expects to achieve in the USA following the recently completed merger with International Steel Group.

• Over $200 million annually in purchasing and manufacturing alone
  • Purchasing synergies currently projected at $150 million annually due to changes in mix of purchased goods, purchase-price reductions, and integrated purchasing processes
  • Manufacturing synergies will be at least $60 million annually, based on mix and facility optimization plus sharing of best practices
• Further operating synergies (e.g., reduced S,G, & A) projected at approximately $20 million
• One-time improvements (e.g., inventory reduction) estimated at approximately $60 million
• Significant additional opportunities – not incorporated in above estimates
  • in such areas as revenue enhancements, reduced capital expenditures, and contract-related improvements in productivity

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