ArcelorMittal shelves steel project in Indonesia

The world's largest steel producer ArcelorMittal has shelved its plans of setting up steel facilities in Indonesia after finding the proposed endeavour to be unviable in the wake of the global economic slowdown.      

"We have looked at the feasibility of establishing steel facilities in Indonesia and, at this time, we are not pursuing the project," ArcelorMittal Chairman and CEO L N Mittal has said while announcing the company's results.      

The steel giant had not made any formal announcement about the investment proposed in the Indonesia project, but media reports said it was to the tune of $10 billion.      

"...We were evaluating it. So, it was never part of our strategy. Historically, there was a press news by the Indonesian government that ArcelorMttal was looking for a $10-billion investment, but never an announcement from our side," Mittal said.      

Asked if the company would consider the project in future, the India-born billionaire said he could not be futuristic.      

"Future we don't know, but at this (point of) time, in short to medium term, I don't see feasibility of any greenfield project in Indonesia," Mittal said.      

Besides Indonesia, the steel major has proposed $20- billion greenfield project in India, where it plans to set up integrated steel plants of 12-million tonnes annual capacity each in Jharkhand and Orissa.