Thyssen sells U.S. plant, seeks €1B in new capital

Nov 29, 2013, 11:27 PM EST
The interior of the ThyssenKrupp Steel USA factory in Calvert, Alabama, is pictured in this undated handout photo.
REUTERS/ThyssenKrupp/Handout via Reuters

Arcelormittal and Nippon Steel & Sumitomo Metal have agreed to buy ThyssenKrupp's steel plant in the U.S. for $1.5 billion. The deal includes a six-year agreement to purchase 2 million tons of steel slab per year from ThyssenKrupp's CSA steel mill in Brazil. The German steelmaker has been trying to offload its Steel Americas operations for a year and a half after writing down their value by €6.4 billion ($8.7 billion). Steel Americas helped wipe €14 billion off ThyssenKrupp's market value since 2008 and forced it to abandon dividends. Thyssen also says it plans to raise €1 billion in new capital from shareholders.