It’s Official: ArcelorMittal USA Mills Now Belong to Cleveland-Cliffs
12/09/2020 - Cleveland-Cliffs Inc. has finalized its acquisition of ArcelorMittal USA and bought out a would-be partner in two jointly owned sheet processing facilities, the company announced Wednesday.
The conclusion of the blockbuster deal cements Cleveland-Cliffs Inc., which made no steel at the beginning of 2020, as one of the largest U.S. steel producers, with pro- forma revenues of approximately US$17 billion.
“Our new footprint expands our technological capability and enhances our operational flexibility, elevating Cleveland-Cliffs to a prominent role as a major player in supporting American manufacturing, American future investments in infrastructure and the prosperity of the American people through good-paying middle-class jobs,” said Cleveland-Cliffs chairman and chief executive Lourenco Goncalves.
The company’s new footprint will include I/N Tek, a cold rolling facility, and I/N Kote, a galvanizing shop, both of which ArcelorMittal had owned in partnership with Nippon Steel Corp. Cleveland-Cliffs said it has acquired Nippon Steel’s 50% stake in I/N Kote and its 40% stake in I/N Tek for approximately US$183 million.
The sale did not include ArcelorMittal’s jointly owned re-rolling plant in Alabama, AM/NS Calvert. ArcelorMittal will continue to operate that plant in partnership with Nippon Steel.
ArcelorMittal chief executive Lakshmi Mittal said the sale will allow ArcelorMittal to focus on its most competitive assets, which include AM/NS Calvert.
“The sale of ArcelorMittal USA is an opportunity to create excellent value for our shareholders and reposition our North American footprint on our most competitive assets, for which we have targeted growth plans. The recently announced EAF at Calvert and the new hot strip mill in Mexico, which will be completed next year, will further enhance these assets and ensure we have the flexibility and quality to meet demand, particularly for higher-added value products. We intend to remain a strategic player in the NAFTA region,” he said.
But it is a fundamentally altered NAFTA region in which ArcelorMittal compete, considering the divestment, U. S. Steel’s acquisition of the remaining stake in mini-mill producer Big River Steel, and the push by the traditional mini-mill producers into high-end grades.
And at the top, as of the moment, is Cleveland-Cliffs, which, between ArcelorMittal and AK Steel, shipped 17 million tons in 2019.
“The acquisition by Cleveland-Cliffs of ArcelorMittal USA … opens a new chapter in the history of the steel business in the United States,” Goncalves said. “The potential of operating this set of assets under one roof is immense, and will be carried out to the benefit of our employees, their families and the communities in which we operate.”
“We recognize our leadership role both domestically and globally as a major steel company, and pledge to operate our business in a disciplined, environmentally responsible, and socially conscious manner,” he added.
“Our new footprint expands our technological capability and enhances our operational flexibility, elevating Cleveland-Cliffs to a prominent role as a major player in supporting American manufacturing, American future investments in infrastructure and the prosperity of the American people through good-paying middle-class jobs,” said Cleveland-Cliffs chairman and chief executive Lourenco Goncalves.
The company’s new footprint will include I/N Tek, a cold rolling facility, and I/N Kote, a galvanizing shop, both of which ArcelorMittal had owned in partnership with Nippon Steel Corp. Cleveland-Cliffs said it has acquired Nippon Steel’s 50% stake in I/N Kote and its 40% stake in I/N Tek for approximately US$183 million.
The sale did not include ArcelorMittal’s jointly owned re-rolling plant in Alabama, AM/NS Calvert. ArcelorMittal will continue to operate that plant in partnership with Nippon Steel.
ArcelorMittal chief executive Lakshmi Mittal said the sale will allow ArcelorMittal to focus on its most competitive assets, which include AM/NS Calvert.
“The sale of ArcelorMittal USA is an opportunity to create excellent value for our shareholders and reposition our North American footprint on our most competitive assets, for which we have targeted growth plans. The recently announced EAF at Calvert and the new hot strip mill in Mexico, which will be completed next year, will further enhance these assets and ensure we have the flexibility and quality to meet demand, particularly for higher-added value products. We intend to remain a strategic player in the NAFTA region,” he said.
But it is a fundamentally altered NAFTA region in which ArcelorMittal compete, considering the divestment, U. S. Steel’s acquisition of the remaining stake in mini-mill producer Big River Steel, and the push by the traditional mini-mill producers into high-end grades.
And at the top, as of the moment, is Cleveland-Cliffs, which, between ArcelorMittal and AK Steel, shipped 17 million tons in 2019.
“The acquisition by Cleveland-Cliffs of ArcelorMittal USA … opens a new chapter in the history of the steel business in the United States,” Goncalves said. “The potential of operating this set of assets under one roof is immense, and will be carried out to the benefit of our employees, their families and the communities in which we operate.”
“We recognize our leadership role both domestically and globally as a major steel company, and pledge to operate our business in a disciplined, environmentally responsible, and socially conscious manner,” he added.
