Brazilian steel and iron ore producer, CSN, has announced its intention to divest assets not directly related to its core steel and mining operations. The primary aim of this initiative is to reduce its financial leverage from the current estimate of 3.14 times EBITDA to a target of 1.83 times.
As of now, CSN's net financial debt stands at BRL 37.5 billion (USD 7.0 billion), with estimated EBITDA at BRL 12.7 billion. The company plans to lower its net financial debt to BRL 19.5 billion through asset sales expected to generate proceeds in the range of BRL 15–18 billion.
The divestment process will focus on the company's infrastructure and cement segments, with the sale process scheduled to commence in January 2026 and anticipated completion during the second half of the year.
Additionally, CSN’s strategy involves forming a strategic partnership within its steel division.
According the president, Benjamin Steinbruch, this move is prompted by current economic conditions characterized by “stratospheric” interest rates and increased competition from imported products.
The main steel plant at Volta Redonda, Rio de Janeiro state, is considered outdated, even with one blast furnace currently idled. Technological upgrades are expected through future partnerships.
USD = BRL 5.36.
