ANNUAL REPORT ARCELOR 2003 - paperJam

The major changes in the consolidation scope sinceDecember 31, 2002 are as follows:Acquisitions:Further to the purchase of the rolling mill of Pallanzeno(production of small and medium beams) from theDuferco group and the purchase of a participation of49.9% in the steel works of San Zeno, Travi e Profilati diPallanzano SpA (Italy, long carbon steel) is fullyconsolidated and San Zeno Acciai - Duferco SpA (Italy,long carbon steel) is accounted for using the equitymethod from July 1, 2003.Disposals:In accordance with the engagements taken with theEuropean Commission, the Group has completed thefollowing disposals during the year (given that the 49%holding in the Spanish company Bamesa had beendisposed of in September 2002):• disposal of the 75.5% participation in the wetgalvanisation production line of Galmed (Spain, flatcarbon steel) to the ThyssenKrupp Stahl group onMarch 31, 2003;• disposal of Beautor (Belgium, flat carbon steel) andSorral (France, flat carbon steel), which specialise in coldmilling, electro-zincing and wet galvanisation, to theDuferco group in April 2003;• disposal, in March and April 2003, of all of the sitesand subsidiaries of Cofrafer (France, distribution,processing and trading) specialised in splitting,oxycutting and distribution;• disposal, in June 2003, of the 50% holding in Lusosider(Portugal, flat carbon steel), a company specialised in coldmilling and galvanisation, to the Corus group;• disposal in September 2003 of the galvanisationproduction line of Laminoir de Dudelange (Luxembourg,flat carbon steel) to Dugal;• disposal in October 2003 of the holding of 66.67% inthe galvanisation unit of Segal (Belgium, flat carbon steel)to the Corus group; and• disposal in December 2003 to the majority shareholderof the 39.93% holding in Finarvedi (Italy, flat carbonsteel).Moreover, the Arcelor group has disposed of its plasticsactivity (PUM Plastics group - France, distribution,processing and trading) to Point.P (subsidiary of theSaint-Gobain group). PUM Plastics, with turnover ofEUR 234 million, specialises in the distribution of plasticsproducts to the construction and public works sectors.Finally, in December 2003, the Finnish steel operatorRautaruukki purchased Dikema Stal AS (Norway,distribution, processing and trading) which specialises inthe pre-fabrication of metal products and the operationof steel service centres.Other changes:BMP Siderurgica S.A. (Brazil, long carbon steel) has beenfully consolidated since April 1, 2003. The company,formerly known as Mendes Júnior Siderurgia S.A., hasbecome a subsidiary of the Group through Belgo-MineiraParticipação Indústria e Comércio, which holds 99% of itsshare capital. Since June 2003, BMP Siderurgica S.A.operates on the Juiz de Fora site, thus terminating thelease between Belgo-Mineira Participação Indústria eComércio and the Mendes Júnior group.The Group has also increased its participation inCompanhia Siderurgica de Tubarao (CST) in Brazil(Brazil, flat carbon steel). The holding increasedfrom 24.4% on December 31, 2002 to 29.4% onDecember 31, 2003, primarily due to the disposal tothe Group and to CVRD of the participation of Acesita(Brazil, stainless steel) in Aços Planos do Sul (Brazil,flat carbon steel).The following companies, from the distribution, processingand trading sector have been fully consolidated for thefirst time in 2003:• Arcelor Dystrybucja Polska SP.Z.O.O. (Poland);• Arcelor Distribucia Slovensko SRO (Slovakia);• Arcelor Acelkereskedelmi KFT en (Hungary); and• Arcelor Distribuce-CZ SRO (Czech Republic).In the stainless steel sector, the following companieswere fully consolidated for the first time in 2003:• Trefilados Inoxydables de Mexico (Mexico);• TEVI-Trafilerie e Viterie Italiane S.R.L et Alinox S.R.L.(Italy);• Ugitech UK Ltd (United Kingdom);• Ugine-Savoie Iberica S.A. (Spain);• Ugine-Savoie Suisse S.A. (Switzerland);• Ugine & Alz S.A. (France); and• Longtain Aciers Spéciaux et Inoxydables-Longtain Inox(Belgium).In the context of the restructuring of the Group’s activities,the following events also took place:• Absorption by Usinor S.A. of Valinter, Auxidev, Indus,Sideco and Société Industrielle de Souvigny (France, otheractivities);• Absorption of Bruyères Acier Service by Cisatol (France,distribution, processing and trading);• Absorption of Sprint Métal by Ugitech (France, stainlesssteels);146ANNUAL REPORT ARCELOR 2003