Iscor Limited, South Africa's largest steel producer, has announced that it will change its name to Ispat Iscor Limited.

The company said that it will effect the name change following the Competition Tribunal’s recent approval of the merger between Iscor and the LNM Group. The name change will be put in place once the necessary formalities have been concluded with the regulatory authorities and shareholders.

LNM, which recently became Iscor's controlling shareholder, has been a long-term investor in the company, purchasing its first stake in 2001, shortly after Iscor's unbundling process.

Lakshmi Mittal, chairman of the LNM Group, said the name change reaffirmed LNM's commitment to further build Iscor as part of an international brand.

"Iscor is now part of a global family of companies that constitute the world's second largest steel producer," said Mittal. "The Ispat brand is highly regarded globally and we believe will bring a number of new opportunities and benefits to Iscor." He added that LNM will provide Iscor with high-value proprietary technological support that would allow the South African steel producer to improve its product mix through the production of more sophisticated steels.

Iscor chief executive, Louis van Niekerk said that Iscor was now firmly placed on a growth path to become a truly world class steel producer, as part of the LNM Group.

"Adding the Ispat brand name to Iscor, will have long term marketing and commercial advantages for Iscor, as it is a globally recognized brand," he said. He said LNM's involvement with Iscor, through a business assistance agreement, had already realized significant cost saving benefits for the South African-based steel producer and that LNM's increased interest would lead to the continued identification and implementation of value adding opportunities at Iscor.

"We are confident that LNM's future association with Iscor will enhance the company's international competitiveness, lead to increased efficiencies and significant technology gains for the local steel maker. This move augurs well for Iscor's long-term future and continued profitability in an increasingly competitive global steel market."