"ArcelorMittal, the world leader in the steel industry, has announced that it has increased its investments in Hungary significantly. A new logistic centre with headquarter offices, built at a cost of HUF 1.5 billion (EUR 5.84 m), was inaugurated in the Freeport of Budapest.ArcelorMittal forecast significant investment in order to become a major player on the Hungarian steel distribution market in the following years.
ArcelorMittal Vice President, Philippe Darmayan, said the company considers Eastern Europe a key target region, adding that owing to Hungary's geographical position, developed transport routes on road, rail and water, the country has great potential within the region.
Because of this, the company foresees “significant growth in the near future", the first step of which is logistic centre that was officially opened on 3 April.
The investment has been the biggest one at the Freeport so far.
The logistics centre sprawls on two hectares (4.94 acres), of which a closed hall, with a top height of 20 meters, is situated on a 1HA site.
The trimodal logistics facility is right on the bank of the Danube, and has six truck gates and direct railway connection, with capacity to store 25,000 tonnes of steel material at the same time. There is a 15,000-sqm (161,460sqf) area available for further expansion.
ArcelorMittal picked the Budapest Freeport for its good location, excellent road and rail connection, and simple water accessibility of the neighbouring countries, said Tamás Róbert, Managing Director of ArcelorMittal Distribution Hungary.
According to the operator of the Freeport, major investment projects such as ArcelorMittal's open the door for Csepel to become a host of a port and logistics centre large enough even in international comparison.
In order to achieve this status, Budapest Freeport Logistics Plc. pledged in 20005 to carry out HUF 13 billion worth of developments on the 153-hectare plot in ten years. According to plans, there could be even HUF 30-40 bn worth of investments made within this period, with substantial funding from the European Union.
ArcelorMittal Distribution Hungary sold 30,000 tonnes of steel in the value of HUF 6 billion in 2007, and plans to post 50% larger revenues this year. The company also targeted to quintuple its sales on the domestic steel market within three years, and to this end they are planning to embark on several major investment projects in the years to come.
ArcelorMittal is the worlds number one steel company, with 310,000 employees in more than 60 countries. It has led the consolidation of the world steel industry and it claims to rank today as the only truly global steelmaker.
ArcelorMittal is the leader in all major global markets, including automotive, construction, household appliances and packaging.
Its industrial presence in Europe, Asia, Africa and America gives the Group exposure to all the key steel markets, from emerging to mature. ArcelorMittal will be looking to develop positions in the high-growth Chinese and Indian markets.
ArcelorMittal key unaudited financials for 2007 show revenues of USD 105.2 bn, with a crude steel production of 116 m tonnes, representing around 10% of world steel output.
ArcelorMittal is currently listed under the legal entity Mittal Steel NV on the stock exchanges of New York, Amsterdam, Paris, Brussels, Luxembourg and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia.
The CEO and main stock-holder of ArcelorMittal, Lakshmi Narayan Mittal, is considered to be the fourth richest person in the world, with a personal fortune of USD 45 bn.
The Financial Times named Mittal its 2006 Person of the Year. In May 2007, he was named one of the 100 most influential people by Time magazine."
Source: Portfolio Online Financial Journal
07.04.2008