ArcelorMittal in Winning Bid to Construct Steel Plant in Egypt
February 5, 2008
Cleary Gottlieb represented ArcelorMittal in its successful bid for a license to construct a steel plant in Egypt from Egypt’s Industrial Development Authority (a division of the Ministry of Trade and Industry). The plant is expected to have a capacity of 1.6 million tons per annum of direct reduced iron and 1.4 million tons per annum of steel billet. Construction is expected to commence in 2009.
The license was awarded in a competitive bidding process held in Cairo on February 5 and involving bidders from Europe, South Asia and the Middle East.
The investment marks the latest transaction in which Cleary Gottlieb advised ArcelorMittal in the Middle East and Africa, following investments in Algeria (steel privatization) in 2001, Liberia (iron ore and infrastructure concession) in 2005, and Senegal (iron ore and infrastructure concession), Saudi Arabia (greenfield joint venture in steel pipes) and Mauritania (iron ore joint venture) in 2007.
ArcelorMittal is the world’s largest and most global steel maker, with an industrial presence in 27 countries.