Arcelor Mittal appoints Lakshmi N. Mittal as new CEO

Arcelor Mittal, a merged group made up of the world's leading steel companies, Mittal Steel and Arcelor, on Monday announced the re-organization of the company’s senior management structure and appointed Mr. Lakshmi N. Mittal as the new Chief Executive Officer of the merged steel group.

At the time of the merger, the former Arcelor chief, Mr. Roland Junck was named for the title. Commenting on the U-turn taken by the company, Mr. Joseph Kinsch, Chairman of the Board of Directors, said, "We are making these changes to clarify the leadership of the company. It had become clear over the past months that the interests of the company were not best served by the previous structure."

He further said, "I believe these revised arrangements are in the best interest of all stakeholders. Mr. Mittal is one of the most experienced and successful executives in the steel industry, and the board is confident his leadership will deliver the considerable potential of Arcelor Mittal."

The Board of Directors has consentaneously appointed Mr. Lakshmi Mittal as the new Chief Executive Officer with immediate effect.

The newly appointed CEO of the enlarged group will retain his role as President of the Board of Directors. At the same time, Mr. Junck, who has stepped down as chief executive, will remain a member of the Group Management Board (GMB) and will serve as advisor to the Chief Executive.

After the re-organization, the GMB will comprise Mr. Lakshmi N. Mittal, Aditya Mittal, Roland Junck, Michel Wurth, Gonzalo Urquijo and Malay Mukherjee. Mr. Davinder Chugh will continue with his operational functions, reporting directly to the Chief Executive Officer.

About the stepped-down CEO, Mr. Junck, who held the role for just three months, the board chairman said, "On behalf of the Board of Directors, I would like to thank Roland for the role he has played in leading the integration process over the past months. We have made a very successful start, which augurs well for the future of the company."

The newly appointed CEO, Mr. Mittal said that the company’s main focus is on the successful integration of the two companies and to deliver the merger synergies and benefits. "The past three months have served to increase our confidence in the strategic rationale of combining the two companies. I remain very excited about our future prospects," he said.

The combined Mittal Steel and Arcelor group, which is under the process of merging, will be incorporated in 2007 following the successful tender offer.

Arcelor shareholders accepted the $28bn worth of takeover after a lengthy and bitter battle between the firms.

Meanwhile, Arcelor SA and Mittal Steel Co. NV on Monday reported combined third-quarter profit that rose 70 percent to US$2.18 billion on revenue of $22.07 billion, an increase of some 37 percent.

The merged group expects earnings before interest, taxes, depreciation and amortization (EBITDA) for the entire year to fall between US$15.2 billion and US$15.4 billion.