In a statement, ArcelorMittal said CSP will add 3 million metric tons of slab capacity, expanding its footprint in the Brazilian market and opening the potential to ship slab to other ArcelorMittal plants. It also will allow the company to capitalize on a planned third-party investment to form a clean electricity and green hydrogen hub in Pecém.

“In CSP, we are acquiring a modern, efficient, established and profitable business which further enhances our position in Brazil and adds immediate value to ArcelorMittal. There is significant potential to decarbonize the asset given the state of Ceará’s ambition to develop a low-cost green hydrogen hub and the huge potential the region holds for solar and wind power generation,” said ArcelorMittal chief executive Aditya Mittal. 

“CSP produces high-quality slabs and is cost competitive, ensuring its products are competitive domestically and for export. In the short term we will continue to supply CSP’s existing customer base in North and South America. However, what makes this acquisition so exciting is the medium- to long-term potential and options it presents. As we continue to develop the downstream capabilities of our NAFTA and Brazilian businesses over the medium term, we have the option for CSP to become an important intra-group slab supplier. Over the longer term there is also the option to significantly increase its slab capacity and add rolling and finishing capabilities on a low-carbon emissions basis,” he added. 

A joint venture among iron ore miner Vale, Dongkuk Steel and POSCO, CSP has a single blast furnace and conveyor access to the Port of Pecém, a large, deepwater port located 10 km from the plant.