ThyssenKrupp is making big changes in its Steel Americas business. As part of the plan, ThyssenKrupp is selling off its Steel USA rolling and coating plant in Calvert/Alabama to a consortium of ArcelorMittal and Nippon Steel and Sumitomo Metal Corporation at a purchase price of USD 1.55B.
The company also agreed upon a long-term slab-supply contract with the consortium to secure the value of ThyssenKrupp CSA in Brazil. The consortium will purchase 2M tons of slabs per year from ThyssenKrupp CSA up to 2019. The plant in Brazil has an annual production capacity of around 5M tons of slabs. The agreement now reached will reliably secure at least 40% capacity utilisation of the plant for several years. This is also expected to improve ThyssenKrupp’s presence in the South and North American slab markets as well as increase the plant’s capacity utilisation. The transaction is subject to the approval of regulatory authorities in the USA and a number of other countries.
Dr Heinrich Hiesinger, chief executive of ThyssenKrupp AG, said, “We have found a sustainable solution for Steel Americas. The supply contract reduces our risks and creates the conditions to move CSA into profit in the medium term. This is the best available solution for Steel Americas at present.”
