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POTENTIAL INVESTORS EYE US STEEL PLANT IN SLOVAKIA.

Issued at 2012-11-14



Various potential investors have expressed interest in the Slovakian integrated steelmaker US Steel Kosice, part of US Steel Corp, Platts Steel Business Briefing heard from USSK’s spokesman. “United States Steel Corporation believes it is prudent to explore this interest in the context of its overall capital allocation, and in a way that maximizes returns to its shareholders. No decisions have been made at this time”, the company stated.

Due to the EU competition regulations the sale of USSK to any of the other EU major producers including ArcelorMittal, Tata Steel or Riva could raise antitrust concerns, Platts SBB understands. There has been chatter in the US that ThyssenKrupp and USS could swap Kosice for TK’s Alabama rolling mills, but USS would not comment and TK told Reuters it had no interest in Kosice.

An employee of the Ukrainian ISD group – which owns Dunaferr in neighbouring Hungary – also ruled out any interest in the Slovakian plant. "Kosice is a big plant with strong position in the market, a new galvanizing line; it's very active in the automotive market. It would be too expensive for ISD”, he said.

The mill has a strong position as a producer and supplier of sheets for the automotive industry, particularly in Slovakia, the Czech Republic, Poland and Hungary. It also produces tinplate and welded tube.

USSK has “a strong financial performance and strategic position in the region”, the spokesman noted. For the third quarter of 2012 the mill registered $27 million operating profit but it is looking to break even in Q4, as reported. US Steel headquarters in Pittsburgh declined comment on the possible sale of USSK.


Source: SBB



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