Ispat Iscor welcomes formation of Mittal Steel
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South Africa`s Ispat Iscor (IIS) said it was delighted with the formation of the new Mittal Steel company, which moved it from the world`s number two steel group to the world`s biggest steel company.
Ispat Iscor is 50% held by the LNM Group.
The LNM Group on Monday said it would merge its two main divisions, Ispat International NV and LNM Holdings NV and then take over US group International Steel Group.
The combination of Ispat, LNM Holdings and International Steel will form a company with annual steel production of 70 million tons.
Ispat Iscor`s initial involvement with the LNM Group was premised on associating itself with one of the world`s major steel suppliers, in order for the South African company to become part of the global steel market and thereby acquire state-of-the-art systems, technologies and world standard efficiencies, Ispat Iscor`s corporate affairs executive Phaldie Kalam said in a statement.
The formation of the new Mittal Steel company will not have any direct impact on Ispat Iscor since the relationship between Ispat Iscor and the new Mittal Steel company has been firmly established, it will further enhance Ispat Iscor`s reach to global markets in terms of competitive procurement as well as market synergies, Kalam said.
Ispat Iscor will continue to report its results as a publicly listed company on the JSE Securities Exchange South Africa, Kalam added.
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