ArcelorMittal (MT) announced that it has sold its interest in the Kuzbass coal mines in the Kemerovo region of Siberia, Russia, to the country's National Fuel Company (NTK). The assets include the coal mines of Berezovskaya and Pervomaskaya, which cumulatively produce 700,000 tons of coal annually.
The Kuzbass mine supplied coal to ArcelorMittal's steel operations in Ukraine. However, the Ukraine steel operations currently secure coking coal from the company’s mines in Kazakhstan. Hence, Kuzbass is no longer a strategic asset for the company.
According to ArcelorMittal, the disposal of Kuzbass to NTK will offer a sustainable solution for employees and other stakeholders in the region.
ArcelorMittal recently revealed that its unit ArcelorMittal Zenica is investing €4.65 million (around $5.4 million) to further expand its production facilities. Once the project is complete, the new facilities will produce high density coils of re-inforcement bars (rebar) which will considerably reduce the cost of finishing.
The production of rebar in coil in the Balkan region will increase the market share of ArcelorMittal Zenica in southeast Europe and also extend its product range. Also, AreclorMittal Zenica will be the sole producer of rebar in coil in the Balkan region. Machinery will be installed by one of the world’s leading specialists in steel production machinery, SMS Group.
According to ArcelorMittal, the addition of coil production to its capability will strengthen the company’s position as the leading steel producer in the Balkans and also provide a strong competitive edge.
ArcelorMittal currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the steel industry include LB Foster Co. (FSTR), Mechel OAO (MTL) and Mueller Water Products, Inc. (MWA), all carrying a Zacks Rank #2 (Buy).
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