London, Sept 07: The LNM group headed by Lakshmi Mittal, the London-based Indian steel tycoon and the richest Asian in the UK, has reached a draft agreement with the Polish government for the acquisition of its largest steelworks in a deal worth over 630 million pounds, its spokesperson has said. “LNM has been involved in exclusive negotiations for the privatisation of Polskie Huty Stali S.A.(PHS), Poland's most prominent steel producer, comprising of Huta Katowice, Huta Sendzimira, Huta Florian and Huta Cedler since July 14, 2003," the spokesperson said.
“Having agreed the terms for the privatisation, LNM will now begin discussions with the trade unions over the agreement of the social package for the workers and employees of PHS," she said.
Commenting on the draft agreement, group chairman, Lakshmi N. Mittal said: "We have been involved in intense discussions with the ministry of state treasure for some weeks now and we are delighted that when this agreement comes into force it will help secure the future of PHS. We now look forward to working with the trade unions on the social package for the workers and employees of PHS."
The LNM group is the world's second largest steel producer with integrated steel making facilities in 12 countries, estimated annual shipments forecast to exceed 35 million tonnes and revenues to exceed 12 billion US dollars in 2003. The group, including LNM holdings, N V and Ispat International N V, has about 120,000 employees world-wide from over 45 nationalities. Bureau Report