Commissioned in 2016, CSP is a slab plant in northeastern Brazil. It operates a 3-million-metric-ton blast furnace and has conveyor access to a deepwater port. 

“The acquisition offers significant operational and financial synergies and brings with it the potential for further expansions, such as the option to add primary steelmaking capacity (including direct reduced iron) and rolling and finishing capacity,” ArcelorMittal said in a statement. “Given its location, CSP also presents an opportunity to create a new low-carbon steelmaking hub, capitalizing on the state of Ceará’s ambition to develop a low-cost green hydrogen hub in Pecém.”

ArcelorMittal announced the deal with CSP stakeholders Vale SA, POSCO and Dongkuk Steel Mill Co. Ltd. last summer. Closing had been pending regulatory approval, which ArcelorMittal has received. 

“This is a very exciting strategic acquisition for ArcelorMittal. It enables us to capture steel demand growth through the addition of high-quality, cost-competitive slab capacity providing optionality to sell either intra-group or to the North and South American markets,” said ArcelorMittal chief executive Aditya Mittal. 

“Over the long term we also have the option to increase its capacity and add finishing facilities, while there is a clear path to decarbonize the asset given the renewable energy investments being made in the state of Ceará.”