ArcelorMittal Expands Its Business in Brazil with the Acquisition of Companhia Siderúrgica do Pecém (CSP)

After the Fulfillment of the Required Regulatory Procedures, ArcelorMittal Successfully Acquired the Pecém Steel Company (CSP) in Brazil for Approximately US$ 2.2 Billion.

Operating at a globally competitive cost, CSP is a World-Class Operation that Provides High-Quality Plates. The state-of-the-art facility in Ceará, inaugurated in 2016, features a blast furnace with a capacity of 3 million tons. It also has easy access to the Port of Pecém, located just 10 kilometers away via conveyor belts, making it a large deep-water port.

The Purchase Aims to Support ArcelorMittal’s Growth in Brazil

The acquisition presents attractive operational and financial synergies and future growth opportunities. This includes the possibility of expanding primary steel production capacity, incorporating direct reduction processing, and enhancing rolling and finishing capabilities.

Given its location, CSP seized the moment to present an opportunity to create a new low-carbon steel production center, leveraging Ceará’s ambition to develop a low-cost green hydrogen center in Payson.

“This is a very important strategic acquisition for ArcelorMittal. It allows us to meet the growing demand for steel by adding production capacity for high-quality, cost-competitive plates, providing an opportunity to sell both within our own group and to markets in North and South America,” the company stated.

Still on the subject, ArcelorMittal believes that in the long term, the company will have the option to increase its capacity and add finishing facilities, while there is a clear path to decarbonizing the asset, considering the investments in renewable energy being made in the state of Ceará.

“We would like to welcome all CSP employees to ArcelorMittal and thank our internal team that worked on the transaction and integration planning. I am confident that CSP and our existing businesses in Brazil will form a strong combination,” he concluded.

Meet the Buyer

ArcelorMittal is a multinational steel manufacturing conglomerate headquartered in Luxembourg. It was formed in 2006 from the merger of Mittal Steel and Arcelor. ArcelorMittal is the largest steel producer in the world. In 2012, its annual crude steel production was 93.6 million tons. In 2013, it ranked 91st among Fortune Global 500 companies.

ArcelorMittal operates in over 60 countries, produces 130 million tons of steel annually, and employs around 280,000 professionals in factories across Asia, Africa, the Americas, and Europe. The net profit for 2006 was US$ 7.9 billion. Therefore, when the company invests in Brazil, it not only values the domestic market but also opens up opportunities for new companies to view the country as a business expansion prospect.