ArcelorMittal Sells Bosnia Operations to Focus on Future Growth
Strategic Shift: ArcelorMittal's Sale of Operations
In a significant strategic move, ArcelorMittal has signed a crucial sale and purchase agreement for its operations in Bosnia and Herzegovina. This decision encompasses the sale of two key assets, ArcelorMittal Zenica, an integrated steel plant, and ArcelorMittal Prijedor, an iron ore mining venture that supplies the Zenica facility, to the Pavgord Group.
Reasons Behind the Sale
After undergoing a comprehensive strategic review, the leadership at ArcelorMittal concluded that selling its Bosnian operations aligns with the future trajectory of the business. Despite substantial investments and committed efforts to retain these facilities within the ArcelorMittal portfolio, the decision to sell was made in the best interest of the company and its employees.
Impact on Employees
A remarkable aspect of this transaction is the commitment to the workforce. Under the terms outlined, all jobs at ArcelorMittal Zenica and ArcelorMittal Prijedor will transfer to Pavgord Group, ensuring continued employment for existing personnel. This dedication reflects the company’s understanding of the importance of job security during transitions.
Financial Considerations of the Deal
The transaction is projected to conclude in the third quarter of 2025, contingent upon securing necessary merger control approvals and meeting specific conditions. ArcelorMittal anticipates a non-cash loss of approximately $0.2 billion upon finalizing the sale, which includes foregone foreign exchange losses accrued since the acquisition.
Operations to Continue as Normal
In the meantime, ArcelorMittal assures that all operations will function as usual. Local management alongside the company's leadership will provide the necessary support to maintain operational stability until the transition to Pavgord Group is complete.
Gratitude for Community Support
Sanjay Samaddar, Vice President and CEO of ArcelorMittal Europe – Long Products, expressed gratitude toward the governments of Bosnia and Herzegovina for their invaluable support throughout the 21 years of company operations in the area. He emphasized ArcelorMittal's commitment to contributing positively to the local economy and wished continued success to both its employees and Pavgord Group in this new chapter.
About ArcelorMittal
ArcelorMittal stands tall as one of the globe's foremost integrated steel and mining companies, boasting operations in 60 countries and primary production facilities in 15 nations. The firm has secured its position as the largest steel producer in Europe and a key player across the Americas, while steadily expanding its influence in Asia through partnerships with ventures like AM/NS India. In the latest operational year, ArcelorMittal recorded impressive revenues amounting to $62.4 billion, producing around 57.9 million metric tonnes of crude steel and 42.4 million tonnes of iron ore.
Future Commitment to Sustainable Steel
The company's mission centers on producing innovative, sustainable steel solutions tailored for the future. These advanced steels leverage cutting-edge processes, designed to minimize energy consumption, reduce carbon emissions, and foster cost-efficiency. By striving for cleaner, stronger, and more reusable steel products, ArcelorMittal aims to support the global transition toward renewable energy infrastructures that can meet the demands of future societies.
Contact Information
For inquiries concerning investments, reach out to the ArcelorMittal Investor Relations team at +44 20 7543 1128, or email investor.relations@arcelormittal.com. For communications, contact Paul Weigh at +44 20 3214 2419 or press@arcelormittal.com.
Frequently Asked Questions
What operations are being sold by ArcelorMittal?
ArcelorMittal is selling its steel plant in Zenica and iron ore mining operations in Prijedor to Pavgord Group.
What is the expected timeline for the sale?
The sale is anticipated to close in the third quarter of 2025, pending necessary approvals.
How will employees be affected by the sale?
All jobs at the Zenica and Prijedor facilities will be transferred to Pavgord Group, ensuring continued employment.
How much financial loss is expected from the sale?
ArcelorMittal expects to incur a non-cash loss of about $0.2 billion from the sale, including foreign exchange losses.
What are ArcelorMittal's commitments to sustainability?
The company is focused on producing innovative steels that reduce energy usage and carbon emissions, aligning with future sustainability goals.
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