Arcelor Mittal stainless sale seen off due good year

LONDON/BRUSSELS, Dec 14 (Reuters) Arcelor Mittal is less likely to sell its stainless business after enjoying a strong year, company sources told Reuters.

Earlier statements from the company and market talk had indicated a sale was on the cards, but now the world's biggest steelmaker is more likely to invest in its stainless business rather than seek a buyer for it.

''Arcelor Mittal is focusing on further reinforcing the performance of its global stainless operation, which is a value-adding and growing business,'' a company spokesman said on Thursday.

Sources within the company recently told Reuters the likelihood of a sale had dropped significantly.

A senior Arcelor source said the stainless steel business posted very strong results in 2006 and there were currently no more plans to sell the unit.

''Quite on the contrary we are thinking of consolidating it,'' he said.

Arcelor sources had previously said Germany's ThyssenKrupp had shown an interest in the stainless steel business last year.

The company spokesman insisted Arcelor Mittal was keeping its options open.

''No decision on strategic options has been taken regarding the stainless business,'' he said.

Earlier in the year, statments from the company and market talk indicated that a sale was on the cards. In November, executive vice president Jean-Yves Gilet told a conference it was possible [ID:nL09396204].

Arcelor Mittal was formed when Mittal Steel took over Arcelor earlier this year.

Stainless, used in products from skyscrapers to teaspoons, is a traditional part of Arcelor's business. In 2005, it produced around 2 million tonnes at sites in France, Belgium and Brazil, while Mittal Steel never produced the rust-free metal.

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