Mumbai: Steel giant ArcelorMittal will buy a 51-per cent stake in Turkish steel company Rozak, which specialises in H-profiles, sheet and plates, as it seeks to expand presence in the fast-growing market.

"The acquisition of this stake in Rozak will allow our steel distribution business in this country to reach its capacity target in 2010," the Turkish Daily News quoted Gonzalo Urquijo, member of ArcelorMittal group management board, as saying.

"This acquisition is an important step for ArcelorMittal to meet the strong Turkish demand in all products", Urquijo said.

"Turkey is one of the fastest growing steel markets. The construction sector is very dynamic, with a growth rate above 10 per cent," he added.

Luxembourg-based ArcelorMittal is already active in Turkey in flat carbon steel production, and hopes the deal to help it meet rising demand in the Mediterranean country.

ArcelorMittal, whose holdings include Hamilton-based Dofasco Inc., is already the major supplier to Rozak, which posted revenue of 260 million euros ($358 million) in 2006 and shipped about 450,000 tonnes of steel.

Rozak, set up in 1983, employs a hundred people and has five production sites in Gebze, Ikitelli, Eregli, Iskenderum and Izmit.

The transaction is subject to approval from regulators and is expected to be completed by the end of the year.

ArcelorMittal, formed from Mittal Steel Co NV''s $41-billion takeover of rival Arcelor SA, controls some 10 per cent of world steel output.

also see : Other reports on ArcelorMittal