Ohio firm buys ArcelorMittal operations in U.S.
Global steel manufacturer ArcelorMittal has been sold to an Ohio-based company for an estimated $1.4 billion in cash and stock.
Cleveland-Cliffs Inc. announced Monday that it has purchased most of ArcelorMittal’s U.S. operations, including its coke-production plant along the Monongahela River in Monessen. An estimated 180 members of United Steelworkers Local 3403 work at the facility, which halted production June 23. Work ceased July 2, following cleanup.
The plant is in a “hot idle” mode, during which structures are maintained with the possibility of reopening. At the time, a spokesperson from ArcelorMittal cited business disruptions due to the pandemic as the reason for the temporary shutdown.
The deal is expected to close during the fourth quarter, which began today.
Cleveland-Cliffs is acquiring 19 facilities in eight states, including a finishing facility in Weirton, W.Va., and Indiana Harbor, the largest integrated steelmaking complex in North America, located southeast of Chicago.
ArcelorMittal S.A. is based in Luxembourg and has U.S. corporate offices in Chicago. In 2019, according to the company website, the firm had 191,000 employees worldwide, produced steel in 18 countries and shipped 84.5 million tons of steel.
Lourenco Goncalves will head the combined company. He is currently Cleveland-Cliffs’ chairman, president and chief executive officer.
ArcelorMittal, which also announced the sale Monday, said in a statement that “the combined company is expected to generate an estimated $150 million of annual cost synergies.”
Aditya Mittal, the firm’s president and chief financial officer, said in a statement: “Combining these two companies, which have enjoyed a long and strong supplier/customer relationship, is a unique opportunity to create a competitive and resilient company with considerable synergy potential.
“As a result, this transaction offers compelling value proposition with further upside potential.”