Sale of ThyssenKrupp Steel USA Completed
The sale of the ThyssenKrupp Steel USA rolling and coating plant in Calvert, Alabama to a consortium of ArcelorMittal and Nippon Steel & Sumitomo Metal Corporation is completed.
Upon closing, ThyssenKrupp received a purchase price of $1.55 billion from the consortium. At the same time a valuable long-term slab supply contract has been agreed upon that will provide a sustainable solution for the ThyssenKrupp CSA steel mill in Brazil.
The consortium will purchase two million tons of slabs per year from ThyssenKrupp CSA up to 2019. The agreement will reliably secure a minimum 40 percent capacity utilization of the plant for several years. In addition, stronger penetration of the slab markets in South and North America will further increase ThyssenKrupp CSA’s capacity utilization.
The combination of the sale and the slab supply contract will help ThyssenKrupp improve its cash flow profile and key financials in the future.
Following completion of the sale, ThyssenKrupp is now concentrating fully on further operating improvements at the Brazilian plant, where clear progress has already been made in technical performance and efficiency. ThyssenKrupp CSA will remain in the Steel Americas business area.
Press Release, February 27, 2014