ArcelorMittal and Nippon Steel Corporation have announced the signing of a memorandum of understanding concerning a global strategic alliance and expansion under current joint business ventures in North America.

According to a statement released today, the two companies have been working on defining a global strategic alliance since the formation of ArcelorMittal in July 2006.

Under the memorandum of understanding, ArcelorMittal will assume the obligations formerly taken on by Arcelor in its global strategic alliance with Nippon Steel.

In North America, meanwhile, AreclorMittal and Nippon Steel are working towards furthering the scope of current joint business ventures.

“The companies will continue to discuss the potential expansion of the automotive sheet steel business and will enter into a definitive agreement when a final plan has been reached.

“ArcelorMittal is the world’s number one steel company, with 320,000 employees in more than 60 countries,” the statement said. “The company brings together the world’s number one and number two steel companies, Arcelor and Mittal.”

“ArcelorMital is the leader in all major global markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw material and outstanding distribution networks,” the statement added. “An industrial presence in 27 European, Asian, African, and American countries exposes the company to all the key steel markets, from emerging to mature, positions it will be looking to develop in the high-growth Chinese and Indian markets.”

Posted 7/13/2007