Reuters reported that ThyssenKrupp blamed higher costs at the plant in Brazil, operated by Steel Americas, a strong Brazilian real and weak US and European markets for accounting losses of EUR 2.9 billion.

It said that "For the current fiscal year, a significant improvement is not expected until the second half, with the start up of the third coke oven battery and an improvement in input material consumption rates."

The new unit's USD 12 billion facilities have been dogged by cost overruns and start up delays since they were built in 2007.

Analysts said losses at Steel Americas were due to higher consumption of imported coke and natural gas at the Brazil plant, while customers have adopted a wait and see stance amid a deepening debt crisis in Europe and fears of a recession.

(Sourced from www.reutrers.com)