ARCELOR MITTAL PLANS TO BUILD TWO STEEL FACTORIES IN INDONESIA

JAKARTA, Jul 15, 2008 (AsiaPulse via COMTEX) -- MT | Quote | Chart | News | PowerRating -- The world's largest steel maker ArcelorMittal plans to invest around US$6 billion in Indonesia to build two steel factories, an official said.

Mittal wants to build the factories in Pasuruan, East Java and Banten, chief the investment coordinating board (BKPM) Muhammad Lutfi told lawmakers in a meeting Monday.

Lutfi said the factories will each have an annual production capacity of 2 million tons of steel.

He said Mittal already bought 100 hectares of land in Pasuruan for the factory and is looking for a suitable location in Banten.

Mittal failed earlier in its bid to acquire a 49 per cent stake in PT Krakatau Steel as the management of the state-owned steel maker backed up by lawmakers was against selling the stake to foreign strategic investors.

It was decided later than Krakatau Steel would be privatized through an initial public offering, media reports said.

(ANTARA)

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