ArcelorMittal investment in Ukraine to exceed $3 billion - VP

10:49, 11 March 2008
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It might be forced to spend more than it had planned

ArcelorMittal (MT) might be forced to spend more than it had planned on the development of its Ukraine assets, said executive vice president Narendra Chaudhary Monday, according to Dow Jones.

Speaking at the Adam Smith conference, Chaudhary said that due to difficult global financial conditions, the company will spend more than $3 billion to achieve its aim of producing 12 million metric tons a year by 2012.

He said the company is satisfied with its Kryvyi Rih steel mill, but cited lack of infrastructure, human resources and cumbersome bureaucratic procedures, notably when it comes to buying land and its future usage, as the main challenges to the company in Ukraine.

He said he doesn`t see Ukraine joining the World Trade Organization as a risk to greater competition in steel production but urged the country`s government to abandon indicative export prices, which make Ukraine`s production less competitive.

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