ThyssenKrupp Calvert, Alabama Steel Mill Sold

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.