The closing of the acquisition by Arcelor of Lucchini's crude steel production asset in Poland as well as Lucchini's Polish scrap companies Silscrap and Crapex was recently signed in Warsaw, Poland. The closing completes a transaction initiated on February 17th, 2005, with the signature of a Memorandum of Understanding between Arcelor and the Lucchini Group and follows the approval given by the competition authorities.

Huta Warszawa becomes the 5th plant of the Operational Unit Bars and Rods of Arcelor's Long Carbon Sector. The new plant joins the production units of Schifflange/Rodange (rebars) in Luxembourg, Zumarraga and Veriña (wire rod), as well as Zaragoza (merchant bars) in Spain.

In 1992, the Italian Lucchini Group acquired the Warsaw steel plant. The company now operates a state-of-the-art steel mill commissioned in 1997 with an electrical arc furnace based crude steel capacity of 600,000 tonnes per year, ladle furnace, and VAD (Vacuum Argon degassing). The facility also includes a continuous casting machine, ingot casting capabilities, and four rolling mills which produce 300,000 tonnes of special and alloyed steel long products.

Arcelor intends to better use the steel mill's capacity and reposition the company. Huta Warszawa will also target the fast-growing Polish construction market by investing in a highly competitive bar mill. This rolling mill is expected to start production in 2007.

Established in Warsaw city, Huta Warszawa benefits from market and logistics advantages to supply the domestic and the export markets. More than half of the construction market is located in the Center and North of Poland.

Commenting on the acquisition, Roland Junck, Senior Executive Vice-President Arcelor Long Carbon Steel, stated, "This move supports Arcelor's strategic ambition to expand its operations and production capacity in Eastern Europe. It enables the Long Carbon Sector to serve the attractive Polish construction market featuring a high growth potential due to investments in housing and infrastructures."

Arcelor is a leading player of the global steel industry. The company holds leading positions in its main markets: automotive, construction, household appliances and packaging as well as general industry. The company — the number one steel producer in Europe and Latin America — aims to further expand internationally in order to capture the growth potential of developing economies and offer technologically advanced steel solutions to its global customers. Arcelor employs 95,000 associates in over 60 countries. The company places its commitment to sustainable development at the heart of its strategy and ambitions to be a benchmark for economic performance, labor relations and social responsibility.