SÃO PAULO Latin
American steelmaker Ternium SA has ruled itself out as a
possible bidder for ThyssenKrupp AGs 73.13-percent stake
in the 5-million-tonne-per-year Cia. Siderúrgica do
Atlântico (CSA) slab plant in Brazil.
"Ternium is no longer
participating in the CSA sales process given (its) different
value perception, and also because of the (steel) industry
situation," chief executive officer Daniel Novegil told
analysts in a conference call April 30.
The company saw falling steel
prices drag down its earnings in the first quarter of 2013,
with net profit falling 11.6 percent to $151.4 million year
over year as net revenues fell just 2 percent to $2.13 billion
in the same comparison.
Novegil gave no details about
the divergence of opinion between Ternium and ThyssenKrupp when
asked by analysts during the call.
Acquiring CSA would have given
Ternium self-sufficiency in the supply of slab. Currently, the
company buys around 3 million tonnes per year of slab from
third parties to feed its flat-rolling facilities in Mexico,
where it is able to produce as much as 6 million tonnes per
year of flat steel products but only 2.3 million tonnes per
year of slab.
In February, ThyssenKrupp
chairman and chief executive officer Heinrich Hiesinger said
the company was aiming to sign a sales agreement for its Steel
Americas division by May.
Besides CSA, the division also
includes a flat-rolled steel mill in Calvert, Ala.
Several steelmakers have
confirmed interest in the assets, including ArcelorMittal SA,
U.S. Steel Corp. and Nucor Corp. (
amm.com, Feb. 12).
Siderúrgica Nacional SA (CSN) is also interested in the
division, but it recently said that it has not made any binding
bid for the assets and that it is "conservative in terms of
amm.com, April 2).
A version of this article was first published in AMM sister
publication Steel First.