ArcelorMittal buys Ukrainian limestone producer Berislav Construction Materials

Wednesday, 21 July 2010 15:41:58 (GMT+2)

ArcelorMittal, the world's largest integrated metals and mining company, has announced that it has acquired Berislav Construction Materials Plant, located in Ukraine's Kherson region, to ensure a more sustainable supply of limestone for its Ukrainian subsidiary ArcelorMittal Kriviy Rih. The financial details of the deal have not been disclosed.

"This deal will increase ArcelorMittal Kriviy Rih's self-sufficiency in limestone supplies, providing nearly a quarter of the total requirement and providing greater protection against price fluctuations. We will, however, continue to work with our current suppliers as our requirements for different types of limestone cannot be met solely by the newly acquired facility," ArcelorMittal's executive vice president Arnaud Poupart-Lafarge stated.

Berislav Construction Materials Plant is developing a limestone deposit near Kryviy Rih with total reserves of around 11 million mt and an annual production capacity of 700,000 mt of limestone, which is used as a flux in blast furnace steel production.

ArcelorMittal said in its statement that it intends to fulfill all existing contracts at the new facility whilst also renewing production of limestone, increasing production quality, improving efficiency and increasing the focus on health and safety and environmental protection measures.

According to BG Capital, in 2009 ArcelorMittal Kriviy Rih consumed roughly two million mt of limestone at a cost of $18.9 million, and the Berislav acquisition will allow the plant to save $7 million in 2010 and $10 million in 2011.

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