The negotiations for the deal were officially announced on Sunday evening, and now it’s a done deal – the Linz-based steel group voestalpine is selling its pig iron plant in Texas. 80 percent of the direct reduction plant for the production of sponge iron (hot briquetted iron, HBI) in Corpus Christi will go to the European steel giant ArcelorMittal for 610 million euros, as the Upper Austrian company announced on Thursday morning. Voest keeps 20 percent.
The contract was signed today. Part of the further participation of voestalpine is an agreement for the long-term security of 420,000 tons of HBI produced in Corpus Christi. This is the basis for further decarbonization of steel production in Linz and Donawitz (“greentec steel”). “In addition, the partnership reduces the spot market risk for the quantities not required by voestalpine,” said voestalpine. The production capacity of the HBI plant is around two million tons per year. The transaction is expected to close in two to three months.
Source: Nachrichten
