ArcelorMittal, Vale Sign New Long-Term Iron Ore Contracts
04/30/2008 - ArcelorMittal signs new long-term contracts with Vale to supply approximately 480 million tonnes of iron ore and pellets to ArcelorMittal plants in Europe, Africa, and the Americas over the next ten years.
ArcelorMittal has signed new long-term contracts with Vale (Companhia Vale do Rio Doce) to supply iron ore and pellets to its plants in Europe, Africa, and the Americas.
“This is an important agreement for ArcelorMittal, as it ensures that we have the required levels of iron ore to operate our steel plants fully in line with current global demand,” said Davinder Chugh, recently nominated to the company’s Group Management Board, with responsibility for shared services. “Additionally the company has 45% captive iron-ore self-sufficiency, with plans to increase this further to 75%.”
Under the new long-term contracts—the largest ever signed between a steel company and an iron ore supplier—Vale will supply approximately 480 million tonnes of iron ore and pellets to ArcelorMittal plants over the next ten years.
ArcelorMittal is the world's largest and most global steel company, with 310,000 employees in more than 60 countries. The company leads a number of major global markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. An industrial presence in 28 European, Asian, African and American countries exposes the company to key steel markets, from emerging to mature, positions it will be looking to develop in the high-growth Chinese and Indian markets.
ArcelorMittal’s key financials for 2007 show revenues of USD 105.2 billion, with a crude steel production of 116 million tonnes, representing around 10% of world steel output.
