Steel Mills
Ternium Purchases CSA from Thyssenkrupp AG
Written by Sandy Williams
February 22, 2017
Ternium announced today the purchase of 100 percent of Thyssenkrupp AG’s Brazilian steel mill CSA, Cia Siderúrgica do Atlantico SA. The sale is based on a September 30, 2016 valuation of EUR 1.5 billion (US$1.86 billion) that is subject to agreed adjustments at closing. Ternium expects to disburse EUR 1.26 billion ($1.33 billion) for the transaction and assume EUR 300 million of CSA’s debt. The transaction is subject to antitrust clearance in several jurisdictions, including Brazil, Germany and the United States, and is expected to close on or before September 30, 2017.
The sale includes the transfer to Ternium of the agreement to supply 2.0 million tons of slabs from CSA to the Calvert re-rolling facility in Alabama.
Ternium CEO Daniel Novegil said: “Upon completion of this transaction, Ternium is adding another state-of-the-art facility into its industrial system. This will enable us to enhance our differentiation. The facility’s specialization in high-end steel slabs, combined with a coordinated product development and supply chain management effort with our high-end steel capacity in Mexico and Argentina, will support new integration opportunities for the manufacturing of sophisticated finished steel prdoucts for our customers. This, in turn will strengthen our business in strategic industrial sectors across Latin America.”
CSA had consolidated sales of EUR 1.6 billion in 2016 and shipments of 4.3 million tons. CSA is a steel slab producer located in the state of Rio de Janeiro, Brazil and has an annual capacity of 5 million tons of high-end steel slabs. The facility also features a deep-water harbor and a 490 MW combined cycle power plant.
“With the sale of CSA we are parting fully with Steel Americas,” said Dr. Heinrich Hiesinger, CEO of Thyssenkrupp AG.
Ternium is a leading Latin American steel producer with production facilities in Mexico, Argentina, Colombia, the southern United States and Guatemala. Annual crude steel production was 6 million tons in 2016 with shipments of 9.8 million metric tons of finished steel products. Ternium purchased approximately 3.7 million tons of steel slabs from third parties in 2016 for processing at its downstream facilities. The acquisition of CSA will significantly increase steelmaking capacity for Ternium.
Sandy Williams
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