The promoters of Ispat Industries, Pramod Mittal and Vinod Mittal, are taking over the management of the 2.2 m tonnes Ajaokuta Steel plant in Nigeria.

Global Infrastructure Holdings (GIHL), a London- based special purpose vehicle belonging to the Mittals, has signed a 10-year management and technical contract with the Nigerian government for the plant. The Ajaukta steel plant comes with a power plant, a sponge iron plant and a coke owen battery.

The plant manufactures long steel products like light and medium structural and wire rods. Assets of the steel plant are valued at $ 3 billion by analysts. Further details of the deal, however, could not be ascertained.

The Mittal's -Pramod and Vinod - already have a presence in countries like Nigeria, Bulgaria, Philippines, Libya and Bosnia. Ispat Industries, the flagship of the Ispat Group, operates the 3 m tonne integrated steel making capacity at Dolvi, near Mumbai and a cold rolling-galvanising complex near Nagpur in Maharashtra.

GIHL has also signed up to take a controlling interest in Kremikovtzi AD, a 2 m tonne plant in Bulgaria. Ispat Industries chairman Pramod Mittal, could not be contacted for his comments. Industry sources said that another acquisition by the Mittal's could be expected in a couple of weeks time. Analysts say that all of Pramod Mittal's acquisitions have been leveraged buy-outs with very little cash involved.

The Mittal Brothers have been following a strategy of taking over rundown assets and then turning them around. This is quite similar to L N Mittal's (LNM) strategy.

GIHL, recently also took over the management of, National Steel Corporation of Philippines and has already commenced production ahead of schedule.

The plant was renamed as the Global Steel Works International (GSWI) after Mittals took over the unit. It has 1.5 m tonnes hot rolling capacity and a matching 1.5m tonne cold rolling capacity, alongwith a tinplate line.