ArcelorMittal wins 340 mln pound Egyptian license

ArcelorMittal, the world's largest steelmaker, won an Egyptian steel license at an auction on Tuesday for 61.2 million dollar.

ArcelorMittal competed against Al Tuwairqi Group of Saudi Arabia, Al Ghurair Group of the United Arab Emirates, and Essar Steel Ltd of India, said Rania Hila, a spokeswoman at the Industry and Trade Ministry in Cairo.

Egypt produced 5.7 million metric tons of steel in the first 11 months of 2007, 3.4 percent more than a year earlier, according to the International Iron & Steel Institute.

Egypt's construction industry has expanded by 17 percent a year for four years and domestic steel prices have almost doubled in a year, according to government data.

Mac Holding, a unit of Kuwait's Khorafi Group, bid 105 million pounds at an auction for a steel pelletisation license, the Industry and Trade Ministry said.

Al Tuwairqi Group offered 64 million pounds for the same license, the ministry added.

The government will respond in two weeks.

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