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LONDON, UK / ACCESSWIRE / April 24, 2017 / Active Wall St. blog coverage looks at the headline from ArcelorMittal (NYSE: MT) as the Company announced on April 21, 2017 that it has reached an in-principle agreement with UK based industrial and metals major Liberty House Group, which will buy ArcelorMittal's South Carolina based Georgetown Steelworks Plant. Register with us now for your free membership and blog access at:

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One of ArcelorMittal's competitors within the Steel & Iron space, Reliance Steel & Aluminum Co. (NYSE: RS), announced on April 13, 2017, that it will report Q1 financial results for the period ended March 31, 2017, on Thursday, April 27, 2017, at 6:50 a.m. ET. Reliance management will host a conference call that same day at 11:00 a.m. ET. AWS will be initiating a research report on Reliance Steel & Aluminum in the coming days.

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Sharing his views on the matter, John Brett, President and CEO of ArcelorMittal USA, said:

"We are pleased to have an agreement in principle with Liberty House on the sale and restart of our former wire rod mill in Georgetown, S.C. We have achieved our goal of identifying a purchaser with extensive steel experience and a commitment to returning this site to its steelmaking capability."

Sanjeev Gupta, Executive Chairman of the Liberty House Group added:

"We look forward to completing this agreement with ArcelorMittal and to securing the support of various stakeholders, including State Government and other authorities, to help make this vision a reality. This is a key first step for us in the USA. We're keen to apply the same low-carbon GREENSTEEL vision here as we are doing in the UK."

ArcelorMittal USA is part of ArcelorMittal, one of the world's largest steel and mining Company with presence in over 60 countries. ArcelorMittal USA owns and operates 27 facilities in the US which includes mines, integrated steelmaking facilities, mini-mills, and finishing operations. It has team strength of 20,000 people in the US compared to ArcelorMittal's team strength of 209,000 employees. The Company reported a net income of $1.8 billion and EBITDA of $6.3 billion for FY16.

Liberty House's purchase and its future plans

According to the agreement, Liberty House will acquire all the assets of Georgetown Steelworks which includes its 600,000-ton a year electric arc furnace and 750,000-ton a year rod mill. Both parties reached the agreement after extensive discussions over the last few months. The deal will be completed only after the Liberty House conducts its due diligence, which is planned to take place within the next few weeks, and both parties sign a final agreement giving the finer details and the terms and conditions of the sale.

Liberty Group plans to make major strategic investments in the US steel industry and if the sale goes through, this will be Liberty Group's first investment in the US. The re-opening of the Plant will revitalise the local economy of Georgetown by providing jobs to hundreds of people directly at the Plant and indirectly through auxiliary jobs. Liberty House is already in serious discussion with the Union of the workers - United Steelworkers and will garner their support in helping it to re-open the Plant and get the business back on track.

London, UK based Liberty House is a global industrial and metals group which deals in commodities, metals recycling, manufacture of steel, aluminum, and engineering products. It was founded in 1992 by Sanjeev Gupta and currently has presence in over 30 countries with strategic hubs at Dubai, Singapore, and Hong Kong. Its annual turnover is near $6.8 billion and has a workforce of over 4,000 people across the globe. In February 2017, Liberty House acquired Tata Steel UK's Specialty Steels business for £100 million.

Liberty House is focused on creating a sustainable, balanced international business that is non-cyclical, environmentally conscious and socially responsible. It is revolutionizing the steel business in UK with its vision for GREENSTEEL. GREENSTEEL is the manufacturing of steel from recycled and used steel and steel scrap and by using of a wide range of renewable energy sources like gas, coal, oil and uranium, for the same.

About the Georgetown Steelworks Plant

ArcelorMittal's Georgetown Steelworks Plant is spread over 600,000 sq. ft. and sits on a 60-acre plot on the banks Sampit River and used to produce wire rods. ArcelorMittal first shutdown the Plant in 2009 due to the effects of economic recession. The Plant was revived in February 2011 after management signed a new agreement with the Union. The new labor agreement aimed to lower costs at the same time ensuring that the employees were rewarded of mutually agreed milestones in productions and quality were met. The Company finally decided to shut down the Plant in August 2015 due to severe losses on the back of multiple reasons including cheaper steel imports from countries like China, increased domestic competition, etc. At that time, the Plant was producing 300,000 tons of products per year with a team of around 200 employees. The closure of the Plant not only cost the 226 employees their job but also impacted the livelihood of hourly wage earners and onsite contractors and local businesses which were dependent on the Plant.

Stock Performance

At the closing bell, on Friday, April 21, 2017, ArcelorMittal's stock climbed 1.59%, ending the trading session at $7.69. A total volume of 37.12 million shares were traded at the end of the day, which was higher than the 3-month average volume of 18.06 million shares. In the last six months and previous twelve months, shares of the Company have advanced 18.67% and 34.44%, respectively. Moreover, the stock gained 5.34% since the start of the year. Shares of the company have a PE ratio of 15.47 and the stock has a market capital of $24.39.

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