ThyssenKrupp divested of assets in South America

ThyssenKrupp will receive 1.5 billion euros for its Brazilian CSA plant. The buyer was Ternium, which needs a source of slabs. Thus, ThyssenKrupp Steel eliminates the American segment. Both sides are currently awaiting government approval. Completion of the transaction is possible before the end of September this year.

For ThyssenKrupp, it's a way to get away from bad investments in the Americas. ThyssenKrupp entered the US market in 2005. The plan called for the production of slabs in Brazil and then rolling them in Alabama and Europe. The increase in the cost of building factories in Brazil and Alabama, and then technical problems with their launch, drove the business at a loss even in the early stages. The overall losses resulting from these activities will affect the group's results for several years.

In 2014, ThyssenKrupp sold its Alabama plant to a consortium of ArcelorMittal and Nippon Steel. The company has now been able to find a buyer for CSA. Ternium is a major producer in South America with factories in Mexico, Argentina, Colombia, Guatemala, and the southern United States. Last year, the company purchased 3.7 million tonnes of slabs from external producers. With the acquisition of CSA, the company gains the capacity to produce 5 million tonnes.