ArcelorMittal has annocuned plans to spin off its stainless steel unit to the parent’s shareholders, signaling the failure of years of talks among producers aimed at consolidating an industry beset by over capacity and increasing costs. ArcelorMittal said that it is studying plans for a spin off as early as the start of 2011, with the Mittal family set to retain a stake. The announcement follows rival ThyssenKrupp AG’s decision to abandon plans for consolidation of stainless operations last year after it failed to achieve a favorable valuation for the business. Mr Aditya Mittal CFO of ArcelorMittal said that there is stainless steel over capacity in Europe and producers had pursued consolidation to cut costs and rationalize output. Last month Mr Michel Wurth, a member of ArcelorMittal’s management board, said the company would try to participate in any available deals.
