ArcelorMittal is a multinational steel manufacturing corporation and is the second largest steel producer in the world. Companhia Siderurgica do Pecem (CSP) is a bi-national joint venture between Brazilian Vale, South Korea’s Dongkuk, and Posco. It is the first integrated steel mill in the Northeast and the 13th in Brazil.
Recently ArcelorMittal, while continuing to expand its operations in America is set to buy Brazilian steelmaker CSP for $2.2 billion. In the past few years, ArcelorMittal is swooped to buy plants from India, the USA, and Italy. The CSP was built by Brazilian Vale in the last decade, but it proved to be a non-core asset.
CSP operated within Brazil’s export processing zone, and benefits from various tax incentives. ArcelorMittal said that they are acquiring an efficient, modern, profitable, and established business, which will help in enhancing its position in Brazil. The ArcelorMittal company has the potential to capture $50 million of identified synergies, including procurement and process optimization.