Steel Mills

ArcelorMittal a Step Closer to Closure on TK Alabama Mill

Written by Sandy Williams


ArcelorMittal received anti-trust clearance on Wednesday, clearing a hurdle to the acquisition of the ThyssenKrupp Alabama facility. The waiting period under the Hart-Scott-Rodino Antitrust Acquisition Improvements Act (HSR) terminated on Jan. 29 providing clearance for the acquisition.

Following receipt of other customary regulatory approvals, the joint purchase by ArcelorMittal and Nippon Steel & Sumitomo Metal Corp (NSSMC) is expected to close late in the first quarter or in the second quarter of 2014.

ArcelorMittal and NSSMC announced the purchase of the ThyssenKrupp Alabama plant for $1.55 billion last November. The deal included a six year agreement to purchase 2 million tonnes of slab from Thyssenkrupp’s Brazil plant CSA. The purchase is expected to expand ArcelorMittal’s presence in the NAFTA automotive and energy markets.

The Calvert, Ala., steel processing plant includes hot rolling, cold rolling, coating and finishing lines and has an annual capacity of 5.3 million tonnes (5.84 million tons) although a portion of the line is dedicated to rolling stainless slabs. Flat rolled capacity is approximately 4.2 million metric tons (4.6 million net tons).

 

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