ArcelorMittal Skopje - Working Capital and Capex

complete

The proposed project is for working capital and energy efficiency investments at Mittal Steel Skopje. This will enable the client to develop this business based on purchasing semi-finished intermediate steel products for re-rolling. The energy efficiency measures will consist of the purchase and the installation of steam boilers and the switch from oil firing to natural gas in the hot-rolling mill. Sources of transition impact would be: Mittal Steel Skopje, a company which majority owns a hot-rolling and a cold-rolling plant producing steel hot and cold rolled coils as well as galvanised and prepainted steel. The Company is 100% owned by Mittal Steel Company N.V. which has recently become the largest steel company in the world with sales of USD 31.2 billion and steel shipments of 58 million tonnes in 2004. Loan, EUR 25 million. EUR 25 million. The environmental due diligence, undertaken by independent consultants, has not revealed any significant environmental problems. However, there were a number of issues which had to be mitigated by the implementation of the agreed Environmental Action Plan (e. g. upgrading waste water treatment and water management systems, investments to improve hazardous and industrial waste management and storage, improvements to occupational health and safety management and training). These actions help to bring the company into full compliance with national requirements and achieve a higher degree of compliance with applicable EU standards. A part of the loan was spent on energy efficiency investments which also had significant environmental and health and safety benefits (e. g. pickling line refurbishment, reheating furnace fuel switch). The implementation of the EAP is monitored by the Bank. As of April 2009, the following progress has been made on the EAP: The Environmental Management System was certified according to ISO 14001 in October 2008, the company implemented chromium-free surface treatment and plans to have its health and safety management system certified in 2009. The company is implementing a solid waste management system. Delays have occurred in upgrading the wastewater treatment plant, which is shared with other companies; however, this will completed by 2011. In May 2009 the Company received three Corporate Social Responsibility Awards from the Ministry of Economy for its contribution in the domain of environment, relations with employees and investment in the community. An energy efficiency audit has been performed which was financed under an existing framework contract, funded by the CEI, Central European Initiative (Italy). Mr Rajiv Bhatnagar Mittal Steel Skopje Tel: +389 2 3288 200.