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Ternium agrees to acquire CSA in Brazil

21 Feb 2017
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 The Brazilian Siderúrgica do Atlântico (CSA) is a state-of-the-art steel labs plant. With the acquisition, Ternium seeks to consolidate its coordinated presence in the three main industrial countries in the region: Argentina, Brazil and Mexico.

Ternium announced on February 21 a definitive agreement with the German conglomerate thyssenkrupp AG (“tkAG”) to acquire for a total of 1.26 billion euros plus debt a 100% ownership interest in thyssenkrupp Slab International B.V. (“tkSI”) and its wholly-owned subsidiary CSA Siderúrgica do Atlântico Ltda. (“CSA”) in Brazil.

“Upon completion of this transaction, Ternium is adding another state-of-the-art facility into its industrial system,” said Daniel Novegil. “This will enable us to enhance our differentiation. The facility’s specialization in high-end steel slabs, combined with a coordinated product development and supply chain management effort with our high-end steel capacity in Mexico and Argentina, will support new integration opportunities for the manufacturing of sophisticated finished steel products for our customers. This, in turn, will strengthen our business in strategic industrial sectors across Latin America.”

In a press release, the company said that, in addition, tkAG will assign to Ternium a two-million-ton per year agreement to supply slabs to thyssenkrupp’s former Calvert re-rolling facility in Alabama, U.S. The transaction, which will require antitrust clearance in several jurisdictions, including Brazil, Germany and the U.S., and other conditions, is expected to close on or before September 30, 2017.

With annual crude steel production of six million tons and shipments of 9.8 million tons, Ternium purchased from third parties approximately 3.7 million tons of steel slabs in 2016, that were processed in its downstream facilities to obtain finished steel products to supply its customers. After the completion of the CSA acquisition, Ternium will substantially increase its steelmaking capacity.

Read the full statement here