ArcelorMittal Completed Acquisition of Steel Slab Producer in Brazil

SEATTLE (Scrap Monster): ArcelorMittal- the Luxembourg-based leading steel producer announced that it has completed previously announced acquisition of Brazilian steel slab producer Companhia Siderurgica do Pecem (CSP) for an enterprise value of approximately $2.2 billion. The deal had earlier obtained all customary regulatory approvals.

The acquisition covers high-quality slab producing facility located in the state of Ceara in northeast Brazil. The facility houses a three million tonne capacity blast furnace and has conveyer access to the Port of Pecem.

The transaction is expected to deliver significant strategic benefits to ArcelorMittal, by expanding its position in the high-growth Brazilian steel industry. Also, CSP’s location presents an opportunity for ArcelorMittal to create a new low-carbon steelmaking hub, in line with the state’s ambitious plan to develop a low-cost green hydrogen hub in Pecem.

ArcelorMittal welcomed all CSP employees to the company, saying that CSP and its existing Brazilian business will make a compelling combination.

Commenting on the acquisition, Aditya Mittal, CEO, ArcelorMittal said that it will help the company to capture steel demand growth through the addition of high-quality, cost-competitive slab capacity. In the long term, it plans to increase its capacity at the plant and add finishing facilities, he added.