thyssenkrupp has reached agreement with Ternium on the sale of the CSA Siderúrgica do Atlântico (CSA) steel plant in Brazil. The purchase price (enterprise value) is EUR 1.5B.
With the closing of the transaction thyssenkrupp will receive a clear cash inflow which will significantly reduce the Group’s net financial debt.
With the sale of CSA, thyssenkrupp is bringing its loss-making chapter of Steel in the Americas to an end. In 2005 the Group decided to expand its steel business into the Americas. Following a significant increase in construction costs for the facilities in Brazil and Alabama in the USA as well as technical problems with the ramp-up of the plants and high start-up losses, thyssenkrupp placed the entire project under review.
With the purchase of CSA, Ternium will have improved production capacities of up to 5 MMT of slabs per year. Under a slab supply contract agreed up to 2019, CSA will continue to deliver an annual 2 MT to the ArcelorMittal/Nippon Steel plant in the USA.
Until the closing of the transaction, thyssenkrupp’s Steel Americas business area will be reported as a discontinued operation.
