The Steel Workers Union of T&T (SWUTT) says it has found two private investors, one local and one international, to purchase ArcelorMittal’s Point Lisas steel plant but those efforts may have been in vain as the company is refusing to entertain discussions about a purchase.
At a press conference yesterday, SWUTT president Christopher Henry said ArcelorMittal, through managing director Robert Bellisle, had advised the union and its proposed investors to try to buy the plant through its liquidator. “A decision was taken by the union to source investors who would be interested in succeeding ArcelorMittal Point Lisas Limited for a continued operation of the steel industry in T&T, thus securing the livelihood of thousands of citizens,” Henry said.
“A letter was sent to the company indicating such and a request was made for a meeting,” he added. Henry provided a copy of a letter sent to SWUTT by Bellisle in response to the union’s query.
Bellisle wrote: “As you know, the process of liquidation of the company has commenced. “If you would like to submit a formal proposal for the acquisition of the Point Lisas plant, we are willing to review it. “However, and given the magnitude of complexities of any acquisition process and the length of time such process would take, we would suggest that you engage in these discussions with the liquidator once one is appointed.”
Henry called on the Government to intervene as he said that move by the company could allow its parent company to return to T&T and buy the plant back at a low cost during the liquidation process. “The union’s greatest fear is now being realised, as per this response by the company, in that the union believes that the intention of the company is to dispose of their debt/liabilities being owed to the workforce and others by declaring insolvency. “The union also believes that following this, ArcelorMittal International will then return during the process of liquidation and purchase the plant for a fraction of the value, devoid of any financial obligation to the workforce,” he said.
Asked if the investors were willing to absorb ArcelorMittal $1.3 billion debt, Henry said: “Yes, the investors will assume any legitimate debts and repay those. An investigation will have to be done to determine if the debts are real or not, so the investors can pay them off.”
Yesterday, however, Finance Minister Colm Imbert said the company had adjusted its debt figure to $3 billion.
Asked how much of a priority the debts to workers would be if the investors should acquire the plant, he said: “Those things will have to be discussed in detail, it was one of the questions we had asked during our meetings.”
As for the name of the investors, Henry remained tight-lipped, only saying that if the Government became involved the names may be made public.