Arcelor Mittal surprised by Centrin closure

In a statement e-mailed to Newsday yesterday by the company’s general manager of communications and external relations, Fazad Mohammed, Arcelor Mittal said it was “surprised by the announcement” from a valued customer which had “always been afforded priority of supply at competitive terms.”

Arcelor Mittal was responding to Centrin’s claim it had been placed at a “significant disadvantage” in the local and regional markets by Arcelor Mittal’s “practice of supplying billets at a cheaper price” to its competitors in countries like the Dominican Republic.

Without referring directly to this statement, Arcelor Mittal said steel business in the Caribbean and Central America had been “severely impacted by spot sales from Asia and Europe, which has reduced our share in the region.”

Mohammed went on to say this “major challenge to the regional steel industry” could be the reason behind “Centrin’s current business position”.

Responding to this yesterday afternoon, marketing manager of Bhagwansingh’s Group of Companies, of which Centrin is a member, Balliram John said the company had informed.

“Our major concern is having a level playing field for billet prices. Arcelor Mittal exports billets at a cheaper price to a company in the Dominican Republic than to Centrin, which is located next door to it. We couldn’t continue being uncompetitive in the market. We had no problem with our 250 employees but we could no longer produce steel products that end up stored in our warehouse. A difference of five percent in commodity pricing can be the determining factor in a company’s profit or loss,” John told Newsday.