ThyssenKrupp mulling possible Americas sale
May 15, 2012 | 01:51 PM
| Michael Cowden
Tags
ThyssenKrupp,
Steel Americas,
Heinrich Hiesinger,
slab,
flat-rolled,
divestiture,
parternship,
Michael Cowden
TORONTO — ThyssenKrupp AG said it is mulling "strategic options" for its Steel Americas operations as it calls into doubt its business model of shipping slab made in Brazil to finishing facilities in Mobile, Ala.
Those options could include either a sale or a partnership for the plants in the United States and Brazil, the German steelmaker said Tuesday as it reported a 69-percent drop in earnings during the first six months of its fiscal year.
Current economics no longer support the Steel Americas model of turning profits by shipping low-cost slab from Brazil to high-end markets in North America, according to the company. That set-up, developed in 2007, had assumed low-cost slab production in Brazil and more robust demand in North America, ThyssenKrupp said. But with production costs in Brazil rising and a slower-than-expected recovery in the United States, that strategy now leaves ThyssenKrupp exposed to "considerable risks," the company said.....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute — no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Subscribe Now
Click Here
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.
Take a Free trial
Click Here