CSP is a world-class operation, producing high-quality slab at a globally competitive cost. Its facility, located in the state of Ceará in northeast Brazil was commissioned in 2016. It operates a three million tonne capacity blast furnace and has access via conveyors to the Port of Pecém, a large-scale, deep-water port located 10 kilometers from the plant.
The acquisition offers significant operational and financial synergies and brings with it the potential for further expansions, such as the option to add primary steelmaking capacity (including direct reduced iron) and rolling and finishing capacity. Given its location, CSP also presents an opportunity to create a new low-carbon steelmaking hub, capitalising on the state of Ceará’s ambition to develop a low-cost green hydrogen hub in Pecém.
Commenting, ArcelorMittal CEO Aditya Mittal said:
“This is a very exciting strategic acquisition for ArcelorMittal. It enables us to capture steel demand growth through the addition of high-quality, cost-competitive slab capacity providing optionality to sell either intra-group or to the North and South American markets. Over the long-term we also have the option to increase its capacity and add finishing facilities, while there is a clear path to decarbonise the asset given the renewable energy investments being made in the state of Ceará.
“I 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 Brazilian business will make a compelling combination.”