Germany’s largest steelmaker is seeking to sell its U.S. and Brazilian plants as expenses rise and North American demand slows, Bloomberg reports.
According to the company, Brazil output costs are rising “disproportionately,” while the U.S. economy is showing no “major momentum.”
“Since the plans for the project were made, the economic parameters both in Brazil and in the USA have changed from our original assumptions,” Thyssenkrup’s CEO said. “There are clear reasons that now call this strategy into question.”
ThyssenKrupp in 2010 built and started to operate its Rio de Janeiro-based steel-slabs plant, but delays and high costs contributed to impairment charges of 2.9 billion euros in the last fiscal year, when it reported a loss.
“The viability of an integrated strategy with slab production in Brazil and high-margin marketing in the USA is therefore exposed to considerable risks,” ThyssenKrupp said.