Steel Mills
ArcelorMittal to Close on TK in Q1
Written by Sandy Williams
February 9, 2014
The acquisition of the ThyssenKrupp Calvert, Alabama mill by joint partners ArcelorMittal and NSSMC is expected to close during the first quarter of 2014. The company has received Department of Justice anti-trust approval and is waiting for other regulatory approvals to clear. ArcelorMittal is prohibited from looking at the customer mix and order book until they take control of the facilities. Mill production is currently at around 3 million tonnes with improvement in operating rates over the past few quarters. ArcelorMittal expects to ramp up production when they take over.
“Clearly, it’s a facility that’s capable of producing and serving very high-end markets. For those that have visited, you recognize that the principal target markets there are automotive and energy, said Lou Schorsch, CEO ArcelorMittal Americas, in a conference call on Feb. 7. “We are obviously big players in those markets already but, certainly, I think that allows us to optimize in terms of the shipment.”
ArcelorMittal expects synergies of $60 million from the Calvert operation and positive EBITDA in the first year of operation.
The facility is a very good one. I think that the people are good, et cetera, so we’re very pleased about it and confident that we can make it work,” said Schorsch.
Part of the deal for the TK facility was an arrangement to purchase slabs from CSA in Brazil. Schorsch said that “we would plan to be able to then round that out in large part with our own slabs either from excess that we have in the US or potentially from our slab-making operations in Mexico and Brazil.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
CMC Q4 profits rise on improved market conditions
CMC reported higher net earnings in its fiscal fourth quarter on "better market conditions" across its segments.
AISI: Raw steel production drops to multi-month low
After being historically strong for more than four months, US raw steel production fell for a second week.
U.S. Steel sues Algoma over iron pellet shipments
U.S. Steel is suing Algoma over the Canadian flat-rolled producer's rejection of iron pellet shipments, arguing it has breached its contract.
August US mill shipments slip but still higher than last year
The American Iron and Steel Institute reported a decline in the monthly shipments of US mills from July to August.
TransPod, Algoma, Supreme Steel linkup anchors Canadian steel in high-speed transit build
The three Canadian companies have announced a strategic partnership to support the development of an ultra-high-speed transit line from Edmonton to Calgary.