London : In a crucial move to strengthen his presence in Eastern Europe, steel tycoon L N Mittal, who had acquired 69 per cent stake in state-owned Polish firm Polskie Huty Stali in 2004, has signed a pact with the Polish government to buy the remaining stake for USD 2.3 billions.
With this agreement, Mittal Steel will capture 90 per cent of the steel production in Poland. Till recently, it had a share of 70 per cent, reported news agency INEPNEXT.
Mittal Steel is taking over Arcelor SA to form ArcelorMittal. ArcelorMittal is the world's largest steel company, with 320,000 employees in more than 60 countries.
Mittal Steel has also started a modernising drive to bring state-of-the-art technologies and steel making facilities to its four steel plants in Poland.
The company has already pumped in more than one billion dollars in the plants since last year and has commissioned a new colour-coating line in its Swientochlowice plant.
It has re-built and done extensive upgrading of the furnace in Dabrowa Gornicza and modernised the wire-rod mill in Sosnowicw.
Mittal Steel has changed the Polish profile in the world steel market and has become the largest investor in the country.
Indian ambassador to Poland Anil Wadhwa, said: "Though Mittal is based in London, his Indian origins have helped the profile of India over the years in Poland.
"Now Videocon, Zensar, Tata Consultancy and many other companies have entered the Polish market and Indian investment has grown many fold. In a sense, Mittal is a forerunner in this field."