53-696: Essar Steel was a common name of the steel manufacturing companies of the Essar Group of Companies . Its main subsidiary was Essar Steel India Limited, a fully integrated flat carbon steel manufacturer based in Mumbai , which owned and operated a integrated steel plant in Hazira , Surat district of Gujarat state. In addition, it had also a beneficiation plant at Bailadilla, Chhattisgarh , and pellet plants at Visakhapatnam , Andhra Pradesh , and Paradeep , Odisha . After insolvency, Essar Steel India Limited
106-604: A US-based steel company named Minnesota Steel LLC. In 2010, Essar Global acquired Aries coal mines in Indonesia. In 2011, Essar Energy purchased Stanlow Refinery in North West England for $ 1.3 billion. Under Essar's leadership, the first phase of the turnaround of Stanlow refinery has been started during the financial year 2015–16 with $ 187 million net profit. Essar plans a £250 million expansion of Stanlow refinery, with over 16% production of transport fuels in
159-480: A debt of Rs 2,800 crore, according to an Economic Times report. However, it managed to exit the CDR ahead of schedule in 2006. A new cycle of distress began after the rapid expansion at Essar Steel’s Hazira steel operations at the turn of the decade. The expansion plan failed due to delay in environmental approvals and non-availability of natural gas, which was necessary for the plant to work at maximum efficiency. By 2015,
212-536: A major contract worth Rs. 2.3 crore for the construction of an outer breakwater for Chennai Port, thus laying the foundation of Essar Group. In 1991, Essar became India's first Independent Power Producer (IPP) and started a 515 MW cycle power plant at Hazira. It later built and operated national power plants in Madhya Pradesh, Gujarat, Odisha, and internationally in Ontario, Canada. In 1992, Essar acquired
265-527: A mixture of cost-cutting, increased production and a focus on higher-value forms of steel". Chairman Lakshmi Mittal announced doubled earnings the following year in May 2017. Along with the increase in capital, the company also sold its 35% stake in Gestamp Automacion for $ 979 million, with the goal of reducing ArcelorMittal's debt to less than $ 12 billion. By February 2016, the company made about 6% of
318-623: A monitoring committee (MC) of ESIL was formed with ex RP, Mr. Satish Kumar Gupta as Chairman and 4 representatives from Financial Creditors and 3 representative from ArcelorMittal as members. Above NCLT approval was challenged by certain Financial Creditors and Operational Creditors in NCLAT. After hearing these parties, NCLAT approved the Resolution Plan of ArcelorMittal on 4 July 2019 with certain modifications. NCLAT judgment
371-554: A new joint venture. The facility was renamed AM/NS Calvert through the 50/50 joint partnership with Nippon Steel & Sumitomo Metal Corp. The firm also entered into a $ 2.2 billion contract to develop an iron ore deposit in Senegal . This included construction of a 750 km (466 mi) railway line. After it stalled on the contract and failed to build according to schedule, the Government of Senegal sued. In September 2013,
424-636: A new plant for manufacture of hot rolled coils was commissioned in Hazira. A pelletisation plant was set up at Visakhapatnam. P.T. Essar Dhananjaya joint venture was formed in Indonesia for manufacturing of cold rolled products. In 2003, Essar in cooperation with Stemcor set up a cold rolled steel unit. In 2007, Essar acquired the Canadian steel mill Algoma Steel . On 18 January 2012, the company changed its name to Essar Steel India Limited. The account had gone into corporate debt restructuring in 2002, with
477-618: A notice to terminate the Ilva lease agreement, citing as reasons that the Italian Parliament had removed the legal protection necessary for the company to implement its environmental plan without the risk of criminal liability and that a recent decision by the criminal court of Taranto would effectively force Mittal to close blast furnace #2 by 13 December 2019. A legal and media battle with the Italian state started immediately, as Ilva
530-737: A portion of the company’s debt into 36 percent equity to be held by the lenders. in June 2017, lenders had received a list of 12 stressed accounts from the RBI for immediate insolvency action under newly enacted insolvency Code. Essar Steel’s name featured among the largest of the 12 accounts. Insolvency became a reality. The account was finally admitted to the National Company Law Tribunal in August 2017. As per order of National Company Law Tribunal (NCLT) dated 2 August 2017, Essar Steel
583-483: A range of companies in core economy sectors. In 2003, Essar Group acquired Aegis Communication and spread across 13 countries. In 2014, Essar did a part sale of Aegis USA Inc. with annual revenues of $ 400 million to Teleperformance, and in 2017, Essar left the outsourcing business by selling Aegis’ operations to Capital Square Partners (CSP). Essar Steel acquired HGPL and SCGL from Stemcor in 2005 and became an integrated steel producer. In 2007, Essar Global acquired
SECTION 10
#1732797850491636-589: A range of low-carbon energy transition projects. Essar is also foraying into steel manufacturing with plans to set up a 4Mtpa green flat steel complex in Saudi Arabia and an iron ore pellet plant in Odisha . Essar invests in infrastructure and logistics to decentralize heavy trucking through LNG trucks. Its company, GreenLine, owns a fleet of LNG trucks that have collaborated with Tata Steel , JK Lakshmi Cement, Nestlé , and others. The Essar Group comprises
689-523: A variety of assets in the core sectors of energy (oil refining, oil and gas exploration and production, power), infrastructure & logistics (ports, projects), metals & mining, technology, and retail (oilfield services, information technology, and food retail). EGFL holds a nearly 100% stake in all its investments. Significant Essar Group companies include Essar Oil UK, Essar Ports, Essar Oil & Gas Exploration & Production, Essar Shipping , Essar Power, and Essar Projects. In 1969, Shashi Ruia won
742-478: Is a Luxembourg-based multinational steel manufacturing corporation headquartered in Luxembourg City . It was formed in 2006 from the takeover and merger of Arcelor by Indian-owned Mittal Steel . ArcelorMittal is the second largest steel producer in the world , with an annual crude steel production of 78 million metric tonnes as of 2022 . It is ranked 197th in the 2022 Fortune Global 500 ranking of
795-574: Is not only the single primary steel mill Mittal operates in Italy but also the largest employer in Taranto. On 28 September 2020, the company sold its US business to Cleveland-Cliffs for approximately $ 1.4 billion. Lakshmi Mittal (owner of Mittal Steel) is the executive chairman. His family owns 40% of the shares and voting shares in the company. After a $ 3 billion rights issue earlier in April 2016,
848-495: Is ranked 123 in the 2017 Fortune Global 500 ranking of the world's biggest corporations. By March 2017, ArcelorMittal was leading a consortium bidding for Ilva . An Italian company, Ilva owns the Taranto steelworks in southern Italy , which has Europe's largest steel output. The steelworks had been accused of toxic emissions linked to local cancer rates, and had been nationalized by the government years prior. The buyers were
901-783: The Steel Authority of India Ltd (SAIL) agreed on preliminary terms to form a $ 913 million joint venture to export a fifth of the auto-grade steel made by the venture. In March 2017, the company proposed a new US$ 6.5 billion steel project in Karnataka , after entering into a pact with the Karnataka government in February 2017. In April 2017, Sanjeev Gupta 's Liberty House Group announced it had agreed to acquire ArcelorMittal's Georgetown Steelworks in South Carolina . It
954-602: The Supreme Court to take over Essar Steel and pay the creditors with equal rights. ArcelorMittal’s bid of Rs 42,000 crore was considered over Essar’s bid of Rs 54,000 crore. In March 2020, Essar Group was successful in cutting down the residual debt by 70% to about Rs. 12,000 crore. Essar has established Vertex Hydrogen under the UK's HyNet project with Progressive Energy in December 2021 to help drive energy transition in
1007-834: The government of Senegal won a court case before an international tribunal to rescind a $ 2.2 billion deal with ArcelorMittal after the company suspended work on an iron ore mine in the country. In June 2014, the International Chamber of Commerce's arbitration court in Paris awarded Senegal $ 150 million. Dealing with price and demand fluctuations in the steel market, from 2012 to 2014 ArcelorMittal restructured its European division by reducing employee numbers and closing plants. In May 2014, ArcelorMittal, citing economic self-interest, declared its opposition to sanctions on Russia. As of June 2014, ArcelorMittal accounted for 7 per cent of world steel production. After being shut out of
1060-709: The AM Investco consortium, which beyond ArcelorMittal included Marcegaglia and Banca Intesa Sanpaolo . In May 2017, ArcelorMittal was announced as the preferred bidder over a different consortium led by JSW Steel , after it was able to pledge a production increase and guarantee employment levels. The final decision was waiting on Italy's ministry of economic development. On 5 June 2017, ArcelorMittal won approval to purchase Ilva for €1.8 billion. In its bid, AM Investco had pledged to make investments into Ilva of €2.4bn until 2023. On 1 November 2018, ArcelorMittal assumed ownership of Ilva steel operations and ArcelorMittal Italia
1113-480: The CAGR of −7.2% since 4Q'18. The company is involved in research and development , mining , and steel . ArcelorMittal in 2016 produced around 90 million tons of steel. As of May 2017, the company made 200 unique steel grades for automotive purposes, half of which were introduced since 2007. Among the steel varieties are Usibor 2000, which the company announced in June 2016 and released later that year. Upon release,
SECTION 20
#17327978504911166-613: The Chinese steel industry in 2005, along with other foreign companies, in 2014 the company announced it was planning new plants in China. In 2014, the company had an annual crude steel production of 98.1 million tons. Following an investigation first launched in 2008, in August 2016 the Competition Commission (South Africa) found the company guilty of price fixing. ArcelorMittal was fined US$ 110.9 million and, as part of
1219-587: The Committee of Creditors of ESIL evaluated plans of ArcelorMittal and Vedanta and declared Resolution Plan of ArcelorMittal as H1. Post negotiation with ArcelorMittal, CoC approved the Resolution Plan of ArcelorMittal on 25 October 2018. Essar Steel's Resolution Plan was approved on 8 March 2019 with certain modifications with respect to distribution by the National Company Law Tribunal (NCLT). Post-approval of Resolution Plan by NCLT,
1272-659: The Hon'ble Supreme Court gave its order thereby removing the ambiguity over the interpretation of the Section 29A of IBC and also upheld the ineligibility decision of the Resolution Professional but also gave another chance to both parties to clear any past outstanding dues and resubmit the Resolution Plan. Thereafter, ArcelorMittal cleared the dues to the tune of about Rs 7,500 crore to lenders of Uttam Galva and KSS Petron to become eligible to bid for ESIL. Thereafter,
1325-471: The Plans under Section 29A of IBC, held that both Resolution Applicants were ineligible. Same was challenged before NCLT. National Company Law Appellate Tribunal (NCLAT) passed its order on 7 September 2018 and upheld the resolution professional’s view that the first round of bids submitted in February 2018 were ineligible. Above was challenged by ArcelorMittal in the Hon'ble Supreme Court. On 4 October 2018,
1378-613: The South India Shipping Corporation and strengthened its shipping venture. In 1995, Essar Group entered the telecom sector with a Swiss PTT joint venture partnership branded as the Essar Cellphone. In the same year, Essar Group started GSM operations from Delhi. Essar, independently and in partnership with Hutchison (Hutchison Essar), subsequently acquired more telecom circles in India. By 2006, all
1431-582: The UK. AGC Networks, a wholly-owned subsidiary of Essar Group, acquired Black Box Corporation in 2019. During the COVID-19 pandemic , Essar Foundation opened Covid Care Centre at Devbhumi Dwarka, Gujarat, organized vaccination drives, and provided meals to needy people. In 1997, the company started Essar Foundation for philanthropic initiatives in the areas of education, health, environment, women's empowerment, infrastructure, livelihoods & entrepreneurship. ArcelorMittal ArcelorMittal S.A.
1484-508: The UK. In September 2022, Essar Oil UK completed an offtake agreement with Vertex Hydrogen to facilitate hydrogen supply of 280 MW to decarbonize its plants. In November 2022, the Essar Group has become a debt-free company (cleared $ 25 billion in liabilities) by selling its power plant and captive ports to ArcelorMittal Nippon Steel at a deal value of $ 2.05 billion. In 2023, EOGEPL announced that they would invest Rs. 2,000 crore in
1537-416: The acquisition gives us opportunity to contribute to India's expansion in infrastructure and urbanisation in coming decades. The company's US subsidiary declared bankruptcy amid allegations of fraud in late 2015. Essar Group Essar Group is an Indian multinational conglomerate company, founded by Shashi Ruia and Ravi Ruia in 1969. The company, known as Essar Global Fund Limited (EGFL), owns
1590-681: The circles were under Hutchison Essar Limited. Vodafone bought the Hutchison stake, and Hutchison exited India in 2006. Essar Group continued to have a 33% stake in the Vodafone Essar partnership. In 2011, Essar sold its stake and exited the telecom business. In 2006, Essar Oil imported its first consignment of 2.2 billion crude oil at Vadinar in Gujarat. In 2007, Essar owned The MobileStore, an Indian chain of telecom and mobile phone retail stores. In 2017, Essar Steel India Ltd. (ESIL)
1643-405: The city of Temirtau , Kazakhstan where an ArcelorMittal plant is located. Local citizens complained that the pollution was caused by an ArcelorMittal plant. A spokesperson for ArcelorMittal explained that the discoloration of the snow was caused by a lack of wind which would otherwise blow the pollution away. On 4 November 2019, Arcelor Mittal (Am Investco Italy) sent to Ilva's Commissioners
Essar Steel - Misplaced Pages Continue
1696-577: The company began curtailing its European production to match the reduced demand for steel. It also sold Skyline Steel and Astralloy to a rival, Nucor , for $ 605 million. On 26 January 2011, the stainless steel division split off as a new company, Aperam . As of 2012 , due to overcapacity and reduced demand in Europe, it had idled 9 of 25 blast furnaces; in October 2012 it permanently shut down two blast furnaces at Florange , France. On 31 October 2012,
1749-548: The company by 21 April 2016 had a share value of 16,616 million euros, distributed in 3,065,710,869 shares. Acquired by Mittal Steel Company : Acquired by Arcelor : Comprised as follows by nine people as of June 2017: As of 2012, the company had thousands of workers at 12 major facilities in the United States, in states such as Indiana, Ohio and Pennsylvania. All non-salary employees in North America, with
1802-454: The company due to economic reasons, including LTV Steel in Hennepin, Illinois . After purchase of Kryvorizhstal , Ukraine's largest steel producer, employment was scaled back from 57,000 employees to 30,000. In 2010, the company's operating income had fallen to $ 4.9 billion, with sales down 10 per cent from the year earlier, and income down 50 per cent as steel prices slumped. In 2011,
1855-607: The company reported a third-quarter loss of $ 709 million as compared to a $ 659 million profit for the same period a year ago, citing the slow down in China 's economy . In 2012 ArcelorMittal had $ 22 billion of debt. In January 2013, ArcelorMittal bid $ 1.5 billion to acquire ThyssenKrupp AG's rolling mill in Calvert, Alabama , United States. On 26 February 2014, ThyssenKrupp sold their Calvert carbon steel facility to ArcelorMittal and Nippon Steel for $ 1.55 billion, as
1908-468: The company the "worst performer" in the FTSEurofirst300 index. The CEO said the company had performed poorly in 2015 due to "Chinese exports depressing prices". Early in 2016, the company announced it had raised $ 3 billion in new investment capital to help reduce debt to $ 11.7 billion of debt. In early 2016 the company also announced a program to boost core profit by $ 3 billion by 2020 "through
1961-515: The company was saddled with financial creditor dues exceeding Rs 49,000 crore. That year, the lenders made a first attempt to get the promoter family out of the driving seat at the company. At the time, the company was facing severe liquidity issues because of a drop in commodity prices and a failed expansion plan at its Hazira steel plant. At a meeting in November 2015, the lenders to Essar Steel, led by State Bank of India and ICICI Bank, had discussed
2014-579: The end of 2008, the company reported operating income of around $ 12 billion. In December 2008, ArcelorMittal announced several plant sales, to which it had been ordered by U.S. antitrust authorities as a condition of approval of Mittal Steel’s takeover of Arcelor SA, including the Bethlehem Steel plant in Lackawanna, New York , to the Russian company Severstal . Other plants were closed by
2067-702: The exception of the Dofasco facility in Hamilton, Ontario, are represented by the United Steelworkers union, the largest industrial union in North America. Also, at the time around 100,000 of the company's 260,000 employees were in Europe. As of 31 December 2013, the company employed over 232,000 people, of which 37% were in the EU, with a further 16% in non-EU European countries, 17% in Asia, 16% in North America,
2120-593: The next two years in Raniganj to increase their CBM production capacity. Effectively debt-free, Essar is investing in decarbonization, decentralization, and digitalization, wherein it is getting into sustainable businesses like blue & green hydrogen , LNG, biofuels, green ammonia, and green steel. Under Essar Energy Transition (EET), the company plans to invest $ 2.4 billion in Stanlow (UK), between Liverpool and Manchester , and $ 1.2 billion in India to develop
2173-482: The option of converting a portion of the companyõs debt into majority equity, which could be sold to potential investors later. However, the plan was put on hold after the Ruia family told the lenders that they were willing to sell the company through an M&A process. The lenders appointed SBI Capital Markets and ICICI Securities as investment bank to look for potential buyers, however, they failed to find investor. While
Essar Steel - Misplaced Pages Continue
2226-844: The remainder split between South America and the Middle East and Africa. ArcelorMittal is also Luxembourg 's largest private employer. At the beginning of 2014, it employed 4,600 employees in the Grand Duchy. By 2020 the company had over 18,000 employees in North and South America. The head office of ArcelorMittal is in Luxembourg City . The building was the head office of Arbed before that company merged with Aceralia and Usinor . Operated by ArcelorMittal: Joint ventures: ArcelorMittal reported Total CO2e emissions (direct + indirect) for 31 December 2020 at 150.8 Tg ( teragram ) (-31,100 /-17.1% y-o-y). The decline accelerated compared to
2279-426: The search for a new bidder was on, the RBI concluded its asset quality review and asked banks to classify multiple large accounts, including Essar Steel, as non-performing assets by March 2016. In October 2016, Essar Steel submitted a resolution plan to its lenders. It involved Rs 1,700 crore equity infusion from U.S.-based hedge fund in exchange for 24 percent equity in the company. The plan also involved conversion of
2332-485: The settlement, also agreed to invest R4.64 billion in capital over five years. According to the findings, the firm had been part of a 17-member-steel group nicknamed "Club Zürich", that later became known as "Club Europe". Between January 1984 and September 2002, the companies fixed the market, prices, and exchanged confidential corporate information. In 2015, the company had a net loss of $ 7.9 billion. Between February 2015 and February 2016, share value dropped 60%, making
2385-408: The world's largest corporations. It employs around 154,000 people and its market capital is $ 20 billion. The total value of company assets is estimated to be around $ 94 billion. ArcelorMittal was formed from the acquisition of Arcelor by Mittal Steel; Mittal Steel was in turn formed from the merger of ISPAT International and LNM Holdings. The company traces its history back to 1976. ArcelorMittal
2438-487: The world's steel. It ranked 108th in the 2016 Fortune Global 500 ranking of the world's biggest corporations. In February 2017 ArcelorMittal announced its first annual profits in five years. In February 2017, ArcelorMittal and Votorantim announced plans to combine their long steel operations in Brazil . Under the deal, Votorantim Siderurgia became a subsidiary of ArcelorMittal Brasil. In late May 2017, ArcelorMittal and
2491-475: Was acquired by ArcelorMittal Nippon Steel India Limited . History of the company reach back to 1 June 1976 when specialised marine construction company Essar Construction Limited was incorporated as a part of Essar Group . Essar Steel was a division of Essar Construction, responsible for manufacturing of hot briquetted sponge iron. On 19 August 1987, the company changed its name to Essar Gujarat Limited and on 4 December 1995, to Essar Steel Limited. In 1994–1995,
2544-469: Was admitted into insolvency proceedings and Mr. Satish Kumar Gupta was appointed as Interim Resolution Professional by NCLT. Mr. Satish Kumar Gupta was appointed as the Resolution Professional (RP) on 1 September 2017. RP issued Expression of Interest on 6 October 2017 and issued Request for Proposal on 24 December 2017. Accordingly, two Resolution Plans were received on 12 February 2018 from ArcelorMittal and Numetal. The Resolution Professional, after evaluating
2597-443: Was created by the takeover of Western European steel maker Arcelor (Spain, France, and Luxembourg) by Indian -owned multinational steel maker Mittal Steel in 2006, at a cost of €40.37 per share, approximately $ 33 billion total. Mittal Steel launched a hostile takeover bid, which replaced a previously planned merger between Arcelor and Severstal that had lacked sufficient shareholder approval. The resulting merged business
2650-583: Was formed. In July 2017 the company reported a 19.3 per cent year-on-year rise in its earnings for the year's second quarter. The amount was lower than predicted by analysts, with the company citing the volatility in market prices. Also, in July 2017, the European Court of Justice ruled against ArcelorMittal in its lawsuit against how the EU allocates free carbon permits. In January 2018, black snow fell in
2703-675: Was further challenged by CoC and financial creditors on the issue of distribution approved by NCLAT. By its judgment dated 15 November 2019, the Supreme Court approved the Resolution Plan of ArcelorMittal. Above plan was implemented by ArcelorMittal on 16 December 2019 with payment as per plan and Essar Steel was acquired by ArcelorMittal Nippon Steel India Limited, a joint venture between ArcelorMittal and Nippon Steel Corporation . Mr. Aditya Mittal, President and CFO of ArcelorMittal has been appointed as Chairman of ArcelorMittal Nippon Steel and Mr. Dilip Oommen as CEO. Mr Aditya Mittal said that
SECTION 50
#17327978504912756-497: Was named ArcelorMittal and was headquartered in Luxembourg City . The resulting firm produced approximately 10% of the world's steel, and was by far the world's largest steel company. Total revenues in 2007 were $ 105 billion. By February 2008, the company had 320,000 employees in 60 countries. In October 2008, the market capitalisation of ArcelorMittal was over $ 30 billion, after peaking at $ 32.5 billion in September 2008. At
2809-704: Was on the defaulter's list disclosed by the Reserve Bank of India . Essar Oil was acquired by a consortium led by Rosneft , Trafigura , and UCP Investment Group for $ 12.9 billion, and Essar Oil was rebranded as Nayara Energy . In 2018, Essar signed an offtake agreement with GAIL for Raniganj East CBM block production. Essar Oil & Gas Exploration & Production Ltd. (EOGEPL) owns India's highest producing coal bed methane block in Raniganj, West Bengal. In 2019, EOGEPL received environment clearance for exploring shale gas reserves in Raniganj block, West Bengal. In November 2019, ArcelorMittal won approval from
#490509