ArcelorMittal expands its business in Brazil with the acquisition of Companhia Siderúrgica do Pecém (CSP)

After complying with the required regulatory procedures, ArcelorMittal successfully acquired Companhia Siderúrgica do Pecém (CSP) in Brazil for approximately US$2,2 billion.

Operating at a globally competitive cost, the CSP is an operation world-renowned provider of superior quality boards. The state-of-the-art facility in Ceará, which opened in 2016, has a 3 million ton blast furnace. It also has easy access to the Port of Pecém, located just 10 kilometers away via conveyor belts, making it a large deepwater port.

Purchase aims to help ArcelorMittal grow in Brazil

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

Given the location, CSP took the opportunity to present an opportunity to create a new low-carbon steel production center, taking advantage of the ambition of the Ceará to develop a low-cost green hydrogen center in Payson.

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“This is a very important strategic acquisition for ArcelorMittal. It allows us to meet the growth in steel demand, through the addition of capacity to produce high-quality and cost-competitive slabs, providing the opportunity to sell both within our own group and to the North and South American markets.”

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

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

Meet the buyer

ArcelorMittal is a multinational steel conglomerate based in Luxembourg. It was formed in 2006 from the merger of Mittal Steel and Arcelor. ArcelorMittal is the largest steel producer of 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 more than 60 countries, produces 130 million tons of steel per year and employs around 280 professionals in factories in Asia, Africa, the Americas and Europe. Net income for 2006 was $7,9 billion. Therefore, when the company invests in Brazil, it not only values ​​the national market, but also opens up a range of opportunities for new companies to look at the country with a view to expanding their business.