ArcelorMittal sees steel demand rising in mid term

PARIS, April 20 (Reuters) - The steel industry should grow by 4.5 percent a year over the medium term, Lakshmi Mittal, the head of ArcelorMittal(ISPA.AS: Quote, Profile, Research)(MT.N: Quote, Profile, Research), the world's largest steel company, told a French newspaper.

"Apart from western markets, all markets are going to grow," he told business daily Les Echos in an interview released on Sunday ahead of publication.

"In these zones, there will be investment in infrastructure, in housing, boats, etc., and for that, steel will be necessary."

He said his group would find it difficult to expand its current capacity.

"Ultimately, the market is in a situation of tension over the medium term," he said.

Mittal, who was at the centre of controversy in France over plans to partially shut his group's plant in Gandrange, in an eastern region already suffering from high unemployment, said he hoped to invest in a pilot carbon-capture scheme in the area.

But he said a decision would depend on whether the French government would back the project.

"If we can work with the French government, we can realise this additional investment of around 300 million euros ($474.8 million)," he said.

"Other governments want to participate in such a programme but if France wants to participate, it would really be our preference," he said. ($1=.6318 Euro) (Reporting by James Mackenzie; Editing by Jan Paschal)