SEATTLE (Scrap Monster): Luxembourg-based ArcelorMittal announced that it has completed acquisition of majority stake in voestalpine’s Hot Briquetted Iron (‘HBI’) plant located near Corpus Christi, Texas. The acquisition of the 80% shareholding in the facility follows receipt of necessary customary regulatory approvals. The acquisition was initially announced in the month of April this year.
According to company press release, the acquired Corpus Christi operations are valued at approximately $1 billion. It is one of the largest of its kind plant that employs state-of-the-art technologies. The plant has an estimated production capacity of around 2 million tonnes of HBI per annum.
The transaction is expected to enhance the company’s capability to produce high-quality input materials required to boost low-carbon emissions steelmaking. Furthermore, it is likely to reinforce ArcelorMittal’s position as a leader in DRI production among world steel firms. It must be noted that the company is already one of the world’s largest producers of DRI. The acquisition will boost the company’s efforts to lead the decarbonisation drive in steel industry.
As per terms of the deal, the remaining 20% stake will be retained by voestalpine.