ArcelorMittal buys Brazilian slab producer

ArcelorMittal buys Brazilian slab producer
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ArcelorMittal, based in Luxembourg, says it has signed an agreement with the shareholders of Brazil-based Companhia Siderúrgica do Pecém (CSP) to acquire CSP for approximately $2.2 billion. Pending corporate and regulatory approvals, completion of the transaction is expected before the end of the year.

ArcelorMittal describes CSP as a producer of “high-quality slab at a globally competitive cost [at] its state-of-the-art steel facility in the state of Ceará in northeast Brazil.”

The global steelmaker says it sees the purchase as a way to gain access to 3 million metric tons of slab capacity, with the potential to supply slab to other ArcelorMittal plants or to sell into North and South America.

CSP currently uses blast furnace technology to make its slabs. ArcelorMittal says a future investment could allow for expansion, “such as the option to add primary steelmaking capacity (including direct reduced iron) and rolling and finishing capacity.”

In late July, ArcelorMittal also announced second quarter 2022 results indicating the company’s net income of $4.5 billion rose slightly from the $4.4 billion earned in the first quarter of the year.

“The company had a strong first half with market conditions supporting a fifth consecutive quarter of EBITDA [earnings before interest, taxes, depreciation and amortization] of over $5 billion,” says Aditya Mittal, CEO of ArcelorMittal. “We have completed a number of targeted acquisitions reflecting the changing energy and metallic inputs required for low-carbon emissions steelmaking,” he adds.

Mittal also says, “The period, however, was overshadowed by the outbreak of war in Ukraine, where we have steel and mining operations, bringing instability and suffering to the country and our 26,000 employees. Globally the conflict is impacting growth and adding further inflationary pressure, which is spilling over into weakening of demand. Despite the more uncertain global macro outlook, our business is well positioned to effectively manage through the cycle. The long-term outlook for steel demand also remains positive, underpinned by the scale of opportunity related to the energy transition and the continuing growth of developing economies.”

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Source: Recycling Today
ArcelorMittal buys Brazilian slab producer
<![CDATA[ArcelorMittal, based in Luxembourg, says it has signed an agreement with the shareholders of Brazil-based Companhia Siderúrgica do Pecém (CSP) to acquire CSP for approximately $2.2 billion. Pending corporate and regulatory approvals, completion of the transaction is expected before the end of the year.ArcelorMittal describes CSP as a producer of “high-quality slab at a globally competitive cost [at] its state-of-the-art steel facility in the state of Ceará in northeast Brazil.”The global steelmaker says it sees the purchase as a way to gain access to 3 million metric tons of slab capacity, with the potential to supply slab to other ArcelorMittal plants or to sell into North and South America.CSP currently uses blast furnace technology to make its slabs. ArcelorMittal says a future investment could allow for expansion, “such as the option to add primary steelmaking capacity (including direct reduced iron) and rolling and finishing capacity.”In late July, ArcelorMittal also announced second quarter 2022 results indicating the company’s net income of $4.5 billion rose slightly from the $4.4 billion earned in the first quarter of the year.“The company had a strong first half with market conditions supporting a fifth consecutive quarter of EBITDA [earnings before interest, taxes, depreciation and amortization] of…