Reuters reported that German steelmaker ThyssenKrupp plans to sell its US and Brazilian mills separately for at least the book value, which is about EUR 7 billion.

ThyssenKrupp plunged to a net loss in 2011, hit by the cost of expansion in Brazil and the United States, which has backfired amid weakening demand and rising material prices.

The group is now slimming down to cut debt and focuses on its European heartlands and, having sold its stainless steel division and its super yachts business, is looking at selling other assets including Brazilian and US mills. It put its 73% stake in the Brazilian mill and its brand new US flat rolled carbon steel mill in Alabama up for sale in mid May 2012 after years of struggling with delays and cost overruns.

Mr Heinrich Hiesinger CEO of ThyssenKrupp said that "We may need two separate buyers, one for each plant."

Mr Hiesinger said in May 2012 that ThyssenKrupp would offer the Brazilian plant to its partner Vale, which owns about a quarter of the slab producing plant venture, but will also talk to possible buyers in Asia.

He added that "We at least want to fetch the current book value of the mills, which currently is around EUR 7 billion."

Analysts doubt whether both mills are worth that much. They calculate a value of EUR 3 to EUR 4 billion, expecting further write downs. Analysts have also tipped ArcelorMittal, US Steel, Hebei, Baosteel and POSCO as potential buyers of the assets.

Source - Reuters

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