Arcelor's Brazilian unit Arcelor Brasil has signed an agreement to buy a 50% stake of the capital of the Costa Rican companies Laminadora Costarricense SA and Trefileria Colima from Grupo Pujol Marti.

The transaction, carried out through Arcelor Brasil's subsidiary Cia. Siderurgica Belgo Mineira SA, is subject to the fulfillment of a number of conditions by the parties. The deal is expected to be finalized by January 31, 2006.

The Laminadora Costarricense SA rolling mill produces merchant bars and rebars and has a yearly capacity of 400,000 tonnes. The Trefileria Colima wiredrawing unit has a capacity of 60,000 tonnes per year.

Arcelor Brasil, Arcelor's growth platform in Latin America, sees this acquisition, its first investment in this region, as a strategic positioning on the Central American market.

Arcelor Brasil, which resulted from the union of Belgo, CST and Vega do Sul, has a combined production capacity of 11 million tonnes of flat and carbon steel, 25 industrial units in Brazil and Argentina and a staff of 14,500. It is one of the six biggest private groups in Brazil and has a market capitalization of 17.3 billion reals (6.2 billion euros). The company, Arcelor's growth platform in Latin America, is from the outset a leader in sustainability.

Arcelor is a leading player of the global steel industry. With a turnover of 30 billion euros in 2004, the company holds leading positions in its main markets: automotive, construction, household appliances and packaging as well as general industry. The company — number one steel producer in Europe and Latin America — intends to further expand internationally in order to capture the growth potential of developing economies and offer technologically advanced steel solutions to its customers. Arcelor employs 94,000 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.