ArcelorMittal Corporation announced that it has signed an agreement worth approximately $2.2 billion with the shareholders of Brazilian steel mill Companhia Sider urgica do Pec em (CSP).
Located in Ceara province in the northeastern part of the country, 10 km from the Pesem deep-water port to which it is connected by a conveyor, the CSP plant produces up to 3 million tons of commercial slabs per year. . The venture was built in 2016. Until the company was sold, the shares were operated by Brazilian iron ore company Vale (50%) and Korean metallurgy companies Dongkuk Steel (30%) and Posco (20%).
With the sale, it will increase the capacity of ArcelorMittal in Brazil to 16.3 million tons per year. In addition, the company plans to acquire a new source of local salable slabs to replace the plant of ArcelorMittal Mexico (Lazaro Cardenas), which has recently installed a 2.5 million meters per year hot rolling mill.
However, ArcelorMittal plans to increase its rolled product production in Brazil, noting the high steel consumption growth rates in the country. In the future, the company plans to build a rolling mill at CSP or at its Tubarao plant in the south of the country.
Another option for the development of the CSP was interpreted as increasing its capacity to 6 million tons per year. At the same time, the possibilities of building both a blast furnace and an electric furnace using reduced iron obtained using hydrogen metallurgy technologies were considered.
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