MONTERREY, Mexico Ternium
SA has confirmed its interest in ThyssenKrupp AGs steel
assets in the Americas, with the units slab mill in
Brazil of particular interest to the global steelmaker,
according to Ternium Mexico chief executive officer
"Were a (major) consumer
of slabs and we are mindful (of the bidding process.)
Were watching, observing, looking at this process,"
Vedoya told delegates at AMMs 18th Annual
Mexican Steel Forum in Monterrey.
Vedoya declined to comment
further on Luxemburg-based Terniums progress in the
bidding process or the value of its bid, citing confidentiality
"There are many things we cannot
discuss in public," he said.
Ternium has been rumored as a
possible suitor for the ThyssenKrupp operations for some time.
Other major steelmakers, including Charlotte, N.C.-based Nucor
Corp., Luxembourg-based ArcelorMittal SA and Posco Ltd., Seoul,
South Korea, have also confirmed their interest in the assets,
which were put on the auction block by the German steelmaker
ThyssenKrupp originally said it
aimed to recoup the roughly 7-billion ($9.4-billion) book
value of its Steel Americas assetswhich include the
Brazilian slab mill and a U.S. rolling mill in Calvert,
Ala.if it completes a sale (
amm.com, Aug. 28). It has since announced
a 3.6-billion ($4.7-billion) write-down on the
, Dec. 12).
The company began looking for buyers or partners for the
operations when it deemed its model of shipping Brazilian slabs
to finishing facilities in the United States was no longer
amm.com, May 15).
Its too early to say who
will emerge victorious in the bid for the Americas operations,
but according to Vedoya, the "dynamic" trade relationship
between the U.S. and Mexican steel and manufacturing sectors is
unlikely to change following the sale, even if a company with a
strong Mexican presence like Ternium takes control.
"If ThyssenKrupp has the Alabama
plant or Nucor or U.S. Steel (Corp.) or Ternium or whichever
one buys it, competition already exists, so I dont
believe theres going to be a very great change in the
dynamics of trade or the competition between Mexico and the
U.S.," he said.
"Whoever wins the bid, it
doesnt matterthe Americans or whoevertrade
between Mexico and the U.S. is extremely dynamic," Vedoya