(Amended throughout to show that the parties will study forming a venture after Kazakh rail operator corrected its statement, cited in story published on Nov. 22.)
Nov. 22 (Bloomberg) -- ArcelorMittal’s Kazakh unit, the biggest steelmaker in the central Asian country, agreed to consider a joint venture creation with the national railway to produce rails and long products.
State-owned Kazakhstan Temir Zholy and ArcelorMittal Temirtau will make a decision on a joint venture in the middle of next year based on the results of a feasibility study, the Astana-based railway monopoly said in a statement on its website.
Kazakhstan Temir Zholy would provide 50 percent of the investment, with the venture based at ArcelorMittal Temirtau’s facilities, the railway monopoly said. No financial details were disclosed.
The venture, if approved, would start operating by the end of 2013, with annual production capacity of 400,000 metric tons, divided equally between rails and long products, according to the statement from KTZ, as the rail operator is known. The venture will target exports.
--Editors: John Viljoen, Alex Devine
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