Shanghai, China, 4 July – MCC Huatian, a subsidiary of the China Metallurgical group, is to build a steel bar and rail factory for Arcellor Mittal in Mozambique with the capacity to make 400,000 tons, the Chinese company said, cited by Interfax.
Mittal Steel South Africa in 2006 acquired the companies Companhia Siderúrgica de Moçambique (CSM) and Companhia Moçambicana de Trefilarias (Trefil), both of which were in receivership.
Mittal agreed to pay US$11.4 million for the assets of CSM and TRefil, or less than half of what the two companies owe the Mozambican treasury.
Enrico Reatto, of Mittal, guaranteed at the time an immediate investment of US$10 million to get the factories up and running.
The South African company plans for CSM to begin producing iron for the construction industry and for Trefil to manufacture wire, barbed wire and nails.
Mittal Steel South Africa is part of the Arecelor-Mittal conglomerate, the world’s largest steel producer. (macauhub)