Global steelmaker
ArcelorMittal has announced that, together with Japan-based Nippon Steel & Sumitomo Metal Corporation (
NSSMC), it has completed the acquisition of
ThyssenKrupp Steel USA, a steel processing plant in Calvert, Alabama, having received all necessary regulatory approvals.
The transaction, a 50/50 joint venture with
NSSMC, was completed for an agreed price of $1.55 billion plus working capital and net debt adjustment.
The Calvert plant has a total capacity of 5.3 million tons including hot rolling, cold rolling, coating and finishing lines.
According to
NSSMC's statement, the Calvert site will serve the expanding automotive steel market in
North America, especially in southern areas of the
US. The new joint venture will have the capability to meet the growing needs, especially from Japanese car manufacturers, for ultra high tensile strength products with good formability, and hot rolled steel products including high tensile strength grades, in addition to the current supply of cold rolled steel and coated products produced at two
ArcelorMittal units in Calvert.