ArcelorMittal Raises Issue Of Capacity Concentration If JSW Wins Bid For Essar Steel

- Apr 10, 2018-

Business Line reported that as the battle for the stressed assets of Essar Steel gets fiercer, ArcelorMittal is now claiming that JSW Steel’s bid could come in for scrutiny from the Competition Commission of India. Brian Aranha, Executive President, ArcelorMittal, told BusinessLine “If JSW Steel wins the bid for Essar Steel, it will have 41% of the flat-rolled coil market in India, and the top three players, JSW Steel, Tata Steel and SAIL, will command 90% of the flat-rolled business. This kind of concentration is not really in the best interest of the country, and the competition authority would naturally look at it.”

JSW has bid for Essar Steel by joining hands with Russia’s VTB Bank-promoted Numetal. Aranha said that JSW would take charge of Essar Steel as the operator, as the bank (VTB) is not likely to run the steel plant.

JSW Steel has a production capacity of 18 mtpa (million tonnes per annum), which is around 14 per cent of the total steel produced in India. Even if Numetal wins the bid for Essar Steel, JSW’s production will reach about 28 mtpa, which will still be just over 20 per cent. JSW plans to add 5 mtpa to its Dolvi unit in Maharashtra.

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