Arselormital intends to cut its production costs for $ 3 billion

The largest steel company in the World Arselormital plans to reduce production costs by $ 3 billion before the end of next year. This is stated in the company's statement for investors.

As stated in the message, the savings will take place several stages of improving non -precise operations and productivity of blast furnace production, as well as reducing energy costs. Arselormittal is optimistic into the future and expected that the increase in the company's profitability will be backed up by growing demand for steel.

"Focusing attention on these problems, in combination with our leading positions in the markets of developed and developing countries, our diverse range of metal rolling and the highest level of customer service will allow us to be successful in the new realities of the modern economy," said Mr. Lakshmi Mittal, chief executive director of Arselormital.

Arselormital expects the restoration of the profitability of its shares already in 2013. In a message for investors, the company indicates an increase in world consumption of steel by 3-3.5% until the end of this year and the restoration of demand in Europe until last year.

Arselormital intends to bring the average profit per ton of smelted steel from $ 87 to 150 due to the optimization of production processes and new steel smelting processes.

Meanwhile, the company is not going to increase dividends or conduct any capital investment until the time of the net debt is reduced to $ 15 billion. Arselormital, whose debts have reached almost $ 22 billion today, seeks to reduce borrowing after its credit rating was significantly reduced by Investors Service Moody 'S, Standard & Poor and Fitch Ratings.

Arselormital wants to regain a rating of the investment level and will avoid transactions that can have a negative impact on this process, said the chief financial director of the company Adchiya Mittal.

Arselormittal is reduced by the payment of dividends and sell assets in an effort to reduce the company's net debt to $ 17 billion before the beginning of the summer of 2013. As it became known today, Arselormital sold 15% of her shares in her iron ore mining department and infrastructure assets in Quebec (Canada) to the consortium led by Posco and China Steel Corp for about $ 1 billion 100 million.