Thursday, December 16, 2010

Stainless steel business to be spun off from ArcelorMittal publishes its European prospectus and demerger plan

Luxembourg 16 December 2010 - The stainless steel division of ArcelorMittal has today published its European prospectus and demerger plan, following the decision of the ArcelorMittal Board of Directors to proceed with the spin-off of the stainless steel business. The stainless steel division also announces that its new name will be Aperam as at the date of the spin-off.

Bernard Fontana, CEO of ArcelorMittal's stainless steel division, said: 'Today we announce the launch of the new identity of ArcelorMittal's stainless steel division under the Aperam name. This is a first step for Aperam as a leading independent stainless and specialty steel company. We look forward to continuing to develop our excellent customer, supplier and employee relationships as Aperam going forward.'

Mr Fontana further commented: 'Today we also file our demerger prospectus which will provide our future investors and the broader capital markets community with important information regarding our Company.'

Aperam has also launched an initiative to target management gains and profit enhancement of USD 250 million over the next two years. The program, known as the "Leadership Journey", will focus on cost reductions and increasing productivity. As part of this program, Aperam plans to convert its blast furnace number 2 to charcoal in its Brazilian plant in Timoteo, to suspend temporarily its traditional Cold rolling mill in its French plant in Isbergues (capacity of 100,000t) and to invest USD 62 million in the productivity of its hot annealing and pickling line in Gueugnon (France).

About Aperam

Aperam is a global player in stainless, electrical and specialty steel, with operations in more than 30 countries. The business is organized in three divisions: Stainless & Electrical Steel, Service & Solutions, Alloys & Specialties.

Aperam has 2.5 million tonnes of flat stainless steel capacity in Europe and Brazil and is a leader in high value added niches - alloys and specialties. Aperam has also a highly integrated distribution, processing and services network and a unique capability to produce stainless and specialty from low cost Biomass (charcoal). Its industrial network is concentrated in 6 main plants located in Brazil, Belgium and France. Aperam has about 9,800 employees.

Aperam commits to operate in a responsible way with respect to health, safety and wellbeing of its employees, contractors and the communities in which it operates. It is also committed to the sustainable management of the environment and of finite resources.

In 2009, Aperam had revenues of USD 4.2 billion and shipments of 1.45 million tonnes.


The general assembly of shareholders of ArcelorMittal will be held on 25th January 2011 to approve the spin-off transaction. 

Aperam shares will be listed on the stock exchange of Paris, Amsterdam, and Luxembourg. In the United States, they will trade on the over-the-counter market in the form of NY Registry Shares.

Financial Advisors;

Goldman Sachs is the lead financial advisor to ArcelorMittal, and Deutsche Bank is also acting as financial advisor to ArcelorMittal
Financial advisors of Aperam are Crédit Agricole CIB, Société Générale and ING Belgium NV

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