Steel Mills
ArcelorMittal Completes CSP Buy
March 10, 2023
ArcelorMittal has completed the acquisition of Brazilian steelmaker Companhia Siderúrgica do Pecém (CSP) for approximately $2.2 billion.
Located in the state of Ceará in northeast Brazil, CSP produces slab and operates a 3-million-ton capacity blast furnace.
“This is a very exciting strategic acquisition for ArcelorMittal,” ArcelorMittal CEO Aditya Mittal said in a statement. “It enables us to capture steel demand growth through the addition of high-quality, cost-competitive slab capacity providing optionality to sell either intra-group or to the North and South American markets.”
CSP’s facility was commissioned in 2016 and has access via conveyors to the Port of Pecém, a large-scale, deepwater port roughly 6 miles from the plant.
Luxembourg-based ArcelorMittal said the buy offers the potential for further expansions, such as the option to add primary steelmaking capacity (including direct-reduced iron) and rolling and finishing capacity.
ArcelorMittal noted that CSP also presents an opportunity to create a new, low-carbon steelmaking hub. The state of Ceará is planning to develop a low-cost, green hydrogen hub in Pecém.
By Ethan Bernard, ethan@steelmarketupdate.com
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