SÃO PAULO Latin
American steelmaker Ternium SA does not plan to join forces
with another company for a possible acquisition of ThyssenKrupp
AGs 73.13-percent stake in the 5-million-tonne-per-year
Cia. Siderúrgica do Atlântico (CSA) slab plant in
"We would not seek (partners for
the potential acquisition of) CSA, not even Usiminas (Belo
Horizonte, Brazil-based Usinas Siderúrgica de Minas
Gerais SA) as it has now other targets, such as its
turnaround," Ternium chief executive officer Daniel Novegil
said during a conference call with investors and analysts.
However, he emphasized that it
would make sense for Ternium to check if there is an
integration opportunity for the company at CSA, since it is a
major purchaser of slab.
The Luxembourg-based steelmaker
currently buys 3 million to 3.2 million tonnes of slab per year
to feed its own flat-steel rolling facilities in Mexico.
Ternium Mexico SA de CV is able
to produce as much as 6 million tonnes of flat steel products
annually, but it can produce only 2.3 million tonnes of slab
Some of the companys slab
needs are supplied by Siderar SAIC, Terniums Buenos
Aires, Argentina-based subsidiary.
"We have two options: to build a
greenfield operation in Mexico, which would take at least four
years to complete, or to go for CSA, which is a new facility,
to fulfill our (slab) needs," Novegil said.
Ternium also had been studying
the feasibility of building a greenfield slab plant in the
industrial area of the Açu Superport in Brazils
Rio de Janeiro state. "We will maintain our options," he said.
"We are not closing the pages (on the investment in
However, he noted that Ternium
had to write down its previous expenses on the Açu
project as a consequence of delays related to natural gas
supplies and London-based Anglo American Plcs Minas-Rio
iron ore project, which would feed the slab unit.
Novegil did not disclose the
amount of the Açu write-down.
A version of this article was first published by AMM sister
publication Steel First.