International Steel Mills
Vale Selling Its Stake in CSA to Thyssenkrupp
Written by Sandy Williams
April 4, 2016
German steel giant and elevator manufacturer Thyssenkrupp is back in steel industry news again. The company will take full ownership of Companhia Siderúrgica do Atlantico (CSA) from Brazilian mining company Vale SA.
Vale owns 27 percent of CSA and plans to sell it to Thyssenkrupp AG for a “symbolic price” while remaining sole supplier of iron ore to the mill and divesting itself of CSA’s debts. If Thyssenkrupp should sell CSA to a third party, Vale will be entitled to future income for an unspecified “period of time.”
The sale will give Thyssenkrupp, which owns 73 percent of the plant, full control of the steel mill’s fate. CSA has been struggling with soaring production costs amid a Brazilian recession and global pricing pressure. CSA reported a debt of €2.6 billion euros for 2015 (nearly $3 billion USD) and an operating loss of €74 million ($84.2 million) for Q1 2016.
CSA was part of Thyssenkrupp’s plan to expand steel production to the Americas and included what is now AM/NS Calvert in Alabama, jointly owned by ArcelorMittal and Nippon Steel & Sumitomo. CSA still continues to provide slabs to the Calvert mill.
Thyssenkrupp attempted to sell its stake in CSA in 2013 without success. Full ownership of CSA may give Thyssenkrupp the advantage it needs to completely exit steel production in the Americas.
CSA has a production capacity of 5 million tonnes of steel slab per year.
Sandy Williams
Read more from Sandy WilliamsLatest in International Steel Mills
CRU: JFE looks to overseas expansion
Japanese steelmaker JFE Holdings will invest abroad as part of a drive to lift income, says group president Yoshihisa Kitano.
CRU: Gerdau mulls new steel mill in Mexico
Brazil-based Gerdau has announced it will carry out a feasibility study into the greenfield development of a 600,000 metric-ton-per-year (mt) special steel plant in Mexico.
EU OKs Nippon buy of USS, hurdles remain in US
The EU has approved Tokyo-based Nippon Steel Corp.’s (NSC’s) proposed buy of U.S. Steel, a report in Reuters on Monday said.
Ternium Mexico’s shipments slip but upturn expected
Destocking at service centers and a downturn in steel pricing impacted Ternium’s shipments in Mexico in the first quarter of the year.
Bula tapped as CEO of Finland’s Blastr
Bula tapped as CEO of Finland's Blastr