London: ArcelorMittal on Monday said that its subsidiary ArcelorMittal India Pvt Ltd (AMIPL) has submitted an offer for Essar Steel India Limited in line with the corporate insolvency resolution process for Indian steel company.
In its offer, AMIPL set out a detailed industrial plan for the debt-laden steel maker to address its operational issues and aimed at improving its performance and profitability.
"Essar provides a compelling opportunity for us to enter the high growth Indian steel market. The offer submitted today by AMIPL includes a detailed investment plan to address operational issues in Essar's existing asset base.
"With our industry expertise and renowned operating prowess, we believe we are uniquely equipped to implement a successful turnaround which would be beneficial to its stakeholders," said ArcelorMittal Chairman and CEO Lakshmi Mittal.
In its offer, the company also highlights the experience and track record of the group in the successful acquisition and integration of under-performing assets.
The steel major also said Essar would also have access to the deep bench of technical expertise and knowledge from across the group which is unparalleled in the steel industry.
ArcelorMittal Europe CEO and Group CFO Aditya Mittal said this opportunity aligns with the group's strategy of selectively investing in attractive projects to maximize long-term shareholder value.
"India is expected to be the world's fastest growing economy over the next decade and as the economy grows its steel intensity will also increase. We believe our technical experience and management know-how, gained from many successful acquisitions and integrations, will ensure success for the various steel and pelletising operations at Essar," he said.
Essar Steel is an integrated flat steel producer and has a crude steel capacity of 9.6 million tonnes per annum, although the current maximum achievable crude steel production level is 6.1 million tonnes per annum, due to a bottleneck in the steel making and casting process, it said in a statement.