Calvert deal meant to stabilize market: Mittal

Dec 03, 2013 | 03:49 PM | Thorsten Schier

Tags  ArcelorMittal, ThyssenKrupp, Calvert facility, Alabama plant, slabs, Lakshmi Mittal, Aditya Mittal, United Steelworkers union USW

NEW YORK — A supply agreement between ThyssenKrupp AG’s slab facility in Brazil and its Calvert, Ala., facility was structured to minimize the impact on the operation’s supply and the North American slab market, ArcelorMittal executives said Dec. 2.

The facility will be taken over by ArcelorMittal SA and Nippon Steel & Sumitomo Metal Corp. (NSSMC) next year.

"What we were trying to do is not create a situation where (the) southern U.S., now Alabama, is buying slabs like crazy and then in June and July it is not buying slabs because the cost of slab is too high, because that would create a tremendous amount of disturbance to its customer base and the market forces. So what we wanted to do was create a stable supply, which we knew would always work in Alabama, and not get disrupted by the international markets," chief financial officer Aditya Mittal said during a conference call with analysts.....

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