Steel Mills

Thyssenkrupp Completes Sale of CSA to Ternium

Written by Sandy Williams


Thyssenkrupp finalized the sale of Brazilian steel mill CSA Cia Siderúrgica do Atlántico to Ternium this week. The sale takes effect retroactively from Sept. 30, 2016. The $1.3 billion deal was hammered out in February.

Completion of the transaction ends a long process for Thyssenkrupp to divest all of its Steel America assets. In 2014, Thyssenkrupp sold what is now AM/NS Calvert Steel in Alabama to ArcelorMittal and Nippon Steel. The company was unable at the time to find a buyer for the struggling CSA, which it jointly owned with Vale. Thyssenkrupp secured full ownership of CSA from Vale in late 2016.

“With the sale of CSA, Thyssenkrupp has now fully divested Steel Americas and achieved a further important milestone on its strategic way forward,” said Thyssenkrupp in a press release.

“This acquisition brings another state-of-the-art facility into Ternium’s industrial system, along with CSA’s highly-skilled personnel and know-how, thereby enhancing our differentiation and value-added capabilities in the steel production supply chain,” said Daniel Novegil, CEO of Ternium. “Upon integration, Ternium customers will not only benefit from our expanded high-end steel slabs capacity, but also see the results of an enhanced product development and supply chain management effort that will increase our high-end steel specialization in Mexico and Argentina. We move forward as a strengthened organization across our strategic industrial sectors in Latin America.”

CSA’s name will be changed to Ternium Brasil and Marcelo Chara, former industrial director of Ternium’s Argentina operations, has been named chief executive officer.

CSA provides slabs to AM/NS Calvert and will continue to honor current contract that expires Sept. 30, 2019. Calvert purchases 2 million tons of slabs annually from CSA.

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