Steel vendors Arbed, its partner Aceralia, and Usinor intend to merge into a single company to reinforce their positions in Europe and to be able to better support their clients outside Europe..
The new company, to be created in the autumn of this year, will be headquartered in Luxembourg.
The three companies expect to realise annual costs savings of 300 million euros by the end of 2003, increasing to reach 700 million euros in 2006.
The merger will create the world’s largest steel company. With more than 110,000 employees around the world, the new group will have a total production of 46 million tons of crude steel.
It will be the leader in flat carbon with sales of 15 billion euros, in long carbon with sales of 4 billion euros, in stainless with sales of 5 billion euros, and in distribution, trading and processing with sales of 6 billion euros.
Total estimated 2000 pro-forma consolidated sales will be close to 30 billion euros.