NEW YORK ThyssenKrupp AG
aims to recoup the roughly 7-billion ($8.86-billion) book
value of its Steel Americas assets as it looks to sell or find
a partner for the struggling unit, a spokesman told
The spokesman described the
process of selling the companys facilities in Calvert,
Ala., and Rio de Janeiro as "quite young," adding, "There are
more than 10 interested parties, but we have no concrete
information yet (to share) about who is interested and what is
the status (of that interest)."
ThyssenKrupp said in May it was
looking to sell off or find a partner for its Steel Americas
business, citing rising raw material costs in Brazil and a
slower-than-expected North American recovery as reasons for the
divisions sustained financial losses (
amm.com, May 15). Steel Americas lost $781 million
in the first nine months of its fiscal year (
amm.com, Aug. 10).
Industry analysts said that it
might be difficult to get $8.86 billion for the facilities,
given the tough economic climate.
"Does that also include some
oceanfront property in (landlocked) Arizona? Its a nice
dream," said one New York-based analyst.
Analysts previously told
AMM that ThyssenKrupp might have to wait if it wants
to avoid taking a large loss on its Steel Americas investment
amm.com, May 18).
The ThyssenKrupp spokesman
confirmed reports Tuesday that chief executive officer Heinrich
Hiesinger had said the company would sell the two facilities
"It could be difficult to sell
both (Steel Americas facilities) together, as the business
model has proven to be difficult," a second analyst said.
The facilities were designed to
work in tandem, with ThyssenKrupp using the Alabama rolling
facility to process slab produced in Brazil.
Analysts have suggested a number
of U.S. companies as potential buyers, including Fontana,
Calif.-based California Steel Industries Inc.; Charlotte,
N.C.-based Nucor Corp.; and Pittsburgh-based U.S. Steel
Overseas interest could come
from ArcelorMittal SA and Ternium SA, both of Luxembourg; Cia.
Siderúrgica Nacional and Vale SA, both of Rio de
Janeiro; Baosteel Group Corp. Ltd. of Shanghai, China; Dongkuk
Steel Group of Seoul, South Korea; and Posco Ltd. of Pohang,
South Korea (amm.com, May 18).
None of those companies has
officially confirmed interest in ThyssenKrupps
Stacy Irish, New York,
contributed to this story.