The European Investment Bank (EIB) granted the Arcelor Group 125 million EUR financing for the construction of Carinox, the UGINE & ALZ steelplant in Charleroi (Belgium). This new facility, which will have a 1 million tonne production capacity, is currently under construction on the site of the existing hot strip mill of the UGINE & ALZ company. This investment contributes to the economic development of the Hainaut province, an Objective 1 region in Belgium, characterised by low levels of industrial investment and a relatively high rate of unemployment.
The loan agreement was signed on July 6th in Luxembourg by Guy Dollé and Michel Wurth, CEO and CFO of Arcelor, and Philippe Maystadt, President of EIB.
The project will result in the creation of 400 permanent jobs (both direct jobs and subcontractors), as well as a large number of indirect jobs. Carinox, a new generation steelplant, will be equipped with all the latest control and operation technologies available. For that reason, a specific training plan has been organised for the new workforce. This steelplant, which benefits from an optimal workforce organisation, aims to act as a benchmark for environmental protection (water and air treatment and by-products processing).
This project solves three major handicaps of the flat stainless steel sector within the Arcelor Group: the number of production sites, their geographic dispersion and the unit size of its steelplants. The new facility, which is directly connected to the hot strip mill, will provide optimised industrial configuration, reduced transport costs and an outstanding competitive position at international level for the Charleroi site.
The participation of the EIB in the financial operation enables the Arcelor Group to diversify its funding sources, both in terms of duration and interest rates, adapting them to the characteristics and requirements of the project.
On signing the agreement, Philippe Maystadt, President of EIB, highlighted the impact of the project will have on the region and expressed his satisfaction for the support provided by the EIB for this large investment program that fosters industrial innovation and the competitiveness of the European industry.
Arcelor is a leading player in the global steel industry. With a turnover of EUR 30 billion in 2004, the Group holds a leading position in each of its main markets: automotive, construction, household appliances and packaging as well as general industry. The company - number one steel producer in Europe and Latin America - aims to further expand internationally in order to capture the growth potential of developing economies and offer technologically advanced steel solutions to its global customers. Arcelor employs 95,000 associates in over 60 countries. The company places its commitment to sustainable development at the heart of its strategy, aiming to be a benchmark for economic performance, labour relations and social responsibility.
The European Investment Bank, as the European Union's financing institution, contributes towards the integration, balanced development and economic and social cohesion of the Member Countries. To this end, it raises substantial volumes of funds on the markets which it channels on favourable terms into the financing of capital projects in accordance with the objectives of the EU. In 2004, the EIB granted loans amounting to EUR 43.2 billion.