ArcelorMittal Acquired Majority Stake in Corpus Christi HBI Plant

SEATTLE (Scrap Monster): ArcelorMittal signed an agreement to acquire 80% shareholding in voestalpine’s state-of-the-art Hot Briquetted Iron (HBI) plant in Corpus Christi, Texas. The remaining 20% stake will be retained by voestalpine. The transaction values the world class facility at around $1 billion. The closing of the transaction is subject to customary closing conditions.

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Alongside, the Luxembourg-based steelmaker has signed a long-term offtake agreement with voestalpine towards supply of annual volume of HBI corresponding to voestalpine’s equity stake to its steel mills in Donawitz and Linz, Austria. The balance production will be delivered to third parties under existing supply contracts and to ArcelorMittal facilities, including to AM/NS Calvert in Alabama.

Commenting on the development, Aditya Mittal, CEO, ArcelorMittal said that the compelling strategic acquisition will accelerate its progression into producing high-quality metallic feedstock for EAFs and its global decarbonisation journey. The ideally-located facility has its own deep-water port. Also, the portion of unused land on the site offers interesting options for further development, he added.

The plant, opened in October 2016, has an annual capacity of 2 million tonnes of HBI.