Essar Global completes Minnesota acquisition

Ahmedabad, Oct 24 (UNI) Essar Steel Holdings Limited, part of Essar Global Limited, has, on receipt of regulatory and environmental approvals, completed the acquisition of Minnesota Steel LLC, a US- based steel company, with estimated reserves of over 1.4 billion tonnes of iron ore located on the Mesabi iron range in northeast Minnesota.

Minnesota Steel will commence the project activities soon upon achieving the financial closure, Essar Steel said in a release here today. This is one of the largest acquisitions by an Indian group in Minnesota.

The release quoted Essar president (North America) Madhu Vuppuluri saying ''Together with Minnesota Steel and Algoma Steel, we are optimistic about creating a new and vibrant steel manufacturing capability in North America.'' Commenting on the acquisition, Essar Global chairman Shashi Ruia said ''This acquisition follows our purchase of Canada's Algoma Steel earlier this year. These acquisitions are in line with our strategy of having a geographical spread close to high value steel markets as well iron ore sources. Essar's steel business is now poised to consolidate its position as a low cost, high value producer of carbon steel.'' Essar recently acquired Algoma Steel, Canada which has capacity of 4 million tonnes per annum. Essar Steel also plans to set up steel making facilities in Eastern India and abroad in Trinidad&Tobago and Vietnam, besides enhancing its steel capacity at its plant at Hazira, India, where it is the largest producer of flat steel in western India.

UNI