Boston, MA 04/09/2014 (wallstreetpr) – ArcelorMittal SA (ADR) (NYSE:MT), a $27.30 billion organization, is regarded as the largest steel producer of the world. The company also produces coke, which is a baked coal that is used as fuel to power blast furnaces.
The company purchased coke plant in Monessen in 2008 but stopped operations at the facility shortly after in 2009. Since then, machines have not been running in the plant. Instead, there have been renovation works going in to improve the condition of the facility. The ongoing improvements which are expected to end soon are among other things, expected to ensure that the plant operates within the permitted air quality parameters.
Air quality concerns
Besides ArcelorMittal SA (ADR) (NYSE:MT)’s renovated plant, there are other two coke plants in the area owned by different companies. But the plants have generated many concerns and complaints about air quality. Therefore, environment regulators are expected to inspect and test the air quality near the new plant before and after production resumes. It will ensure that the plant operates within the allowed air quality conditions.
ArcelorMittal SA (ADR) (NYSE:MT) stated that the coke plant which it acquired from Kopper for $160 million, has annual coke production capacity of more than 320,000 metric tons.
Hitting the ground running
ArcelorMittal SA (ADR) (NYSE:MT) stated that it invested $50 million to improve the facility. Coke production in the plant is expected to resume this month or early next month, with more than 113 new jobs being created. The plant that remained idle since May 2009 is expected to hit the ground running at its reopening.
The increasing mining activities are expected to create high demand for coke. It will enable ArcelorMittal SA (ADR) (NYSE:MT) to realize incremental revenue from its Monessen operations.
Restructuring
ArcelorMittal SA (ADR) (NYSE:MT) announced restructuring in its operations, which include decentralization of the organization and focus on shoring up the balance sheet. Organizing the management by geography is expected to help the company achieve more efficient operation and return greater value to investors.
