The Luxembourg steelmaker ArcelorMittal said Monday it will buy Bayou Steel Corp.
One of ArcelorMittal Steel mill’s below
Bayou Steel Corp. operates a minimill on the Mississippi River in LaPlace, and has a rolling mill in Harriman, Tenn. They also run an automobile shredder at the LaPlace plant, barge wrecking and scrap yards in LaPlace, and a plant in Harvey. they employ 630 people and in 2007 generated revenue of $331 million on 510,000 tons of finished product.
ArcelorMittal North America CEO Jos Jacque, said “We are excited by the opportunity that this acquisition represents as it further strengthens … our product portfolio, customer base and distribution network in North America.” For those that don’t know already ArcelorMittal is the worlds largest steel company and has been expanding over the last couple years and seems like they have no plans to slow down in the near future. ArcelorMittal says it will invest 25 billion in the India steel market and is interested in expanding there operations in china as well. On another note as long as the dollar is weak we will probably see more buyouts from foreign steel companies, because exports from the nation’s mills are more competitive.
Bayou Steel went through bankruptcy several years ago and emerged from it in 2004. In 2006, after several months of seeking takeover bids, Bayou Steel agreed to be acquired by Black Diamond Capital Management LLC.
The purchase by ArcelorMittal is subject to regulatory approval.