Steel Mills
ThyssenKrupp Calvert, Alabama Steel Mill Sold
Written by John Packard
December 1, 2013
ArcelorMittal (AM) and their 50/50 joint venture partner Nippon Steel & Sumitomo Metal Corporation (NSSMC) reached an agreement with ThyssenKrupp AG to acquire the ThyssenKrupp Steel USA steel mill located in Calvert, Alabama. The purchase was valued at $1.55 billion for the 4.3 million tons of flat rolling capacity along with 1 million tons of stainless tolling capacity.
The Calvert mill consist of a hot strip rolling mill, pickling facilities, cold rolling facilities including a continuous anneal cold rolled mill and three coating lines capable of producing galvanized, galvannealed, aluminized and Galvalume products.
Included in the transaction is a six year slab purchase agreement for two million metric tons (2.2 million net tons) from the ThyssenKrupp CSA mill in Brazil. The first three years of the agreement calls for a “market-based price formula” with TK having a three year option to extend the slab agreement at more favorable terms to the joint venture compared to the initial time period. According to ArcelorMittal the formula will be based on Midwest hot rolled pricing.
ArcelorMittal advised that the rest of the slabs needed would be sourced from AM plants in the U.S., Brazil and Mexico. The price AM will receive for its slabs will be determined by the volume, price and cost performance of the joint venture.
ArcelorMittal is also responsible for marketing the products coming off the Calvert mill.
This is the first ArcelorMittal mill in the south and will significantly strengthen AM position as a core automotive supplier. The acquisition will also expand AM position in the NAFTA energy markets (pipe & tube).
ArcelorMittal and Nippon Steel already have a relationship in their I/N Tek and I/N Kote joint ventures located in New Carlisle, Indiana.
The transaction is subject to regulatory approval by the U.S. Department of Justice and the Federal Trade Commission.
Based on today’s conference call held by ArcelorMittal the deal is expected to close during the 2nd Quarter 2014.
John Packard
Read more from John PackardLatest in Steel Mills
Cliffs, POSCO announce MoU for ‘transformative’ partnership
Cleveland-Cliffs on Thursday said it had signed a memorandum of understanding (MoU) with POSCO to forge a strategic partnership, one Cliffs bills as "transformative."
Cliffs touts steel stamping solution to replace aluminum in automotive
Cliffs said it successfully completed a defect-free trial production of exposed steel parts using aluminum-forming equipment in collaboration with an unnamed OEM,
Nucor navigates mixed flat-rolled markets with strategic muscle
Nucor entered the fourth quarter with clear forward momentum: stronger-than-expected results, solid sheet and plate demand, and construction progress on a major new mill that should add capacity next year.
Nucor scraps plans for new rebar micro mill in Pacific Northwest
Nucor has pulled the plug on a planned rebar micro mill in the Pacific Northwest.
Nucor profits jump, but company cautions on Q4 outlook
Nucor’s profits more than doubled in the third quarter year over year, but the company expects Q4’25 to be lower sequentially.