Tuesday, June 24, 2008

Lakshmi Mittal takes over Poland's biggest steel plant.

Lakshmi Mittal takes over Poland's biggest steel plant.

Lakshmi Mittal, the richest Indian in the UK, appears to be firmly on his way to becoming number one among the steel makers in the world. His LNM Group has struck an agreement to buy Poland's biggest steelworks in a deal worth over £630 million. He had bought two years ago Sidex, the biggest steel plant in Rumania.

Sources said that the Group has brokered an agreement with the Polish Government to buy Polskie Huty Stali (PHS), that produces 70 per cent of the country's steel from its four mills, but must still agree social package deal with unions that represent the steel maker's 16,000 workers.

LNM Group was chosen as preferred bidder for PHS over United States Steel. With the latest acquisition, LNM will be able to double its output of steel in Eastern Europe to around 15 million tonnes. The deal was agreed with the European Union, which Poland is slated to join next year, to enable PHS to compete with more efficient western rival plants.

The Polish plant will also benefit from £480 million state aid to revamp its operations.

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