The world's largest steelmaker, ArcelorMittal, said on Thursday it is looking to invest up to $10 billion in Indonesia as it taps into the country's steel and mining sector.
As part of its investment plans for Southeast Asia's top economy, ArcelorMittal has proposed an iron ore and coal mining joint venture with local mining firm PT Aneka Tambang Tbk and a joint venture with state-owned steelmaker PT Krakatau Steel to develop a new steel plant in Java.
ArcelorMittal, which accounts for about a tenth of world steel output, also said it is interested in buying a stake in Krakatau Steel, even if it is below 50 percent. "The three proposals that we are making to the government, if all three will happen .... we expect the investment amount to be between $5-10 billion," ArcelorMittal's executive vice-president for finance, Sudhir Maheshwari, told reporters.
The head of the firm, Lakshmi Mittal, branched out from working with his father to set up his own steel plant in Indonesia in 1976, using cheap labour and state-of-the-art technology. He went on to make his fortune by transforming ailing steel mills around the world into money spinners by cutting costs, exploiting economies of scale, and selling higher-value products into a growing market.
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