ThyssenKrupp Steel USA, Alpharetta, Ga., has completed the sale of its rolling and coating plant in Calvert, Ala., to a consortium of ArcelorMittal and Nippon Steel & Sumitomo Metal Corp. 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 through 2019. The agreement will reliably secure a minimum 40% 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.
