ArcelorMittal (NYSE:MT) To Source Equipment From India and China
ArcelorMittal is increasingly looking at sourcing most of the new equipment for our greenfield plants from India and China. The company is eyeing a 20% cut in equipment cost. In particular, it could help reduce equipment costs by 35-40% for the two projects in India, said Pierre Jonette, CEO of ArcelorMittal Design & Engineering Centre. Equipment costs comprise nearly 50% of the total project cost of a greenfield unit.
ArcelorMittal will use India and China as hubs for procuring equipment for projects worldwide without compromising on the quality. The company is in talks with different vendors in the two countries to source boilers, infrastructure and steel structures from India and blast furnaces, coke oven and sinters from China.
Apart from India, where it is setting up two 12 million tonne steel plants, ArcelorMittal has planned smaller greenfield ventures in Indonesia, China, Saudi Arabia and Kazakhstan.