LUXEMBOURG CITY, Luxembourg (June 22) — The world´s largest steel maker, ArcelorMittal S.A., has agreed to buy a majority stake in Rongcheng Chengshan Steel Cord Co., a steel cord and bead wire maker.
ArcelorMittal said it will pay $27 million, subject to certain condition precedents, for majority stake in the Shandong Province firm, which reportedly has 60,000 metric tons of annual capacity for steel tire cord and bead wire. ArcelorMittal declined to comment on the size of the stake. Cooper Tire & Rubber Co. owns a minority stake in the firm but declined to comment on the matter.
The company already makes tire cord and bead wire at other plants, although a spokesman could not say at which ones.
ArcelorMittal is the result of a merger last year of Arcelor S.A. and Russia´s Netherlands-based Mittal Steel Co., which created a global steel producer with $88.6 billion in sales. Arcelor itself was created through the merger in 2001 of three independent steel makers, Arbed (Luxembourg), Aceralia (Spain) and Usinor (France).