FRANKFURT Oct 25 Germany's ThyssenKrupp
could seek a partner to set up steel processing in
Brazil if it fails to sell its steel mill in the Latin American
country, the Wall Street Journal Deutschland reported, citing
ThyssenKrupp has for more than a year been trying to offload
its Steel Americas business, comprising the steel slab-producing
mill in Brazil and a rolling mill in Alabama.
The Brazil plant has the capacity to produce up to 5 million
tonnes of slab a year, part of which is sold to the Alabama mill
for processing into flat products shipped mostly to carmakers.
A new processing plant in Brazil could take up the output of
slabs that ThyssenKrupp can no longer ship to its plant in
Alabama if it finds a buyer for only the U.S. plant, the WSJ
ThyssenKrupp reiterated that it was in "far advanced" talks
with one bidder over the sale of both Steel Americas plants and
aimed to strike a deal soon. It is also in talks with other
interested parties, it said, without providing details.
ThyssenKrupp owns 73 percent of the plant in Brazil, called
CSA, while the rest belongs to Brazil's Vale.
A source familiar with the situation told Reuters last month
that ThyssenKrupp could give up trying to sell the plant in
Brazil, having made no progress in sales negotiations with
Companhia Siderurgica Nacional (CSN).
A move to process CSA's slabs in Brazil rather than in the
United States may also have further financial implications as
Brasilia passed a series of tax breaks in 2005 that benefited
companies exporting at least 80 percent of their output.