Mittal to Spend $35 Billion to Boost Output: FT
London-listed Arcelor Mittal is planning to crank up its steel production by pumping in an additional $35 billion into its global sites, company Chief Executive Lakshmi Mittal told the Financial Times Tuesday.
The investment reflects Mittal's bullish outlook on steel demand around the world and his opinion that the recent turmoil in the financial markets was having "no impact" on the majority of its customers, the FT reported.
"I continue to see conditions for the steel industry as being very favorable," Mittal said.
The U.S. is the only weak region for demand, but its drag on profits would be limited because only about one fifth of the company's steel was sold there, he added.
The majority of the investment will be spent on two steel plants in India, with each plant expected to produce 12 million tons of steel a year by 2015.
"By 2020, India could be consuming 200 million tons of steel a year (nearly four times higher than now)" Mittal told the FT.