In latest twist, ThyssenKrupp reportedly may keep Brazil mill

ThyssenKrupp (TYEKY.OB, TYEKF.PK) is considering keeping its unprofitable Brazilian steel mill but selling its Alabama plant to Brazil's SID, which also would agree to purchase 3M tons/year of steel from the Brazilian mill, WSJ reports.

Other options remain on the table, including a joint bid by ArcelorMittal (MT) and Nippon Steel (NSSMY.PK).

Cleaning up the Steel Americas mess tops the to-do list at the German company, which has written down the value of the two plants by $10.7B since 2010.

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Comments (1)
  • marpy
    , contributor
    Comments (1764) | Send Message
    The Alabama mill was built on the premise of importing cheep slab from Brazil (although no longer true, Brazil was not to long ago the source of among the cheapest slab in the world). They also had a lot of technical/ commissioning and cost over run problems when building this mill. The bottom line is that at the right price and assuming that most of the technical problems are or can be fixed (technical problems generally can be fixed), A purchaser would have a very modern steel making facility in North America where most of the competition is running old junk. If you coupled this with a cheap source of slab or a good North American primary division (Coke and Iron) - you would have a force to be reckoned with in North American steel. This though would require some deep pockets up front coupled with good operating ability. JMO
    13 Aug 2013, 09:33 AM Reply Like
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