ArcelorMittal and Nippon Steel pay $1.55 billion for ThyssenKrupp's Calvert factory

ArcelorMittal and Nippon Steel pay $1.55 billion for ThyssenKrupp's Calvert factory Steel giant ArcelorMittal and Nippon Steel & Sumimoto Metal have settled to buy a US steel plant which is owned by Germany's ThyssenKrupp for $1.55 billion.

The ThyssenKrupp plant is located in Calvert, in the southern US state of Alabama. It has a total capacity of 5.3 million tonnes of steel intended mainly for auto manufacturing and construction.

On Saturday in a statement the steel company ArcelorMittalatated that teh  agreement is for a 50-50 joint venture partnership between the Luxembourg-based ArcelorMittal and Japanese titan Nippon Steel.

The two steel giant already jointly produce steel in the state of Indiana.

The deal comprises of a six-year agreement to buy two million tonnes of slab annually from TK CSA, an integrated steel mill complex which is located in Rio de Janeiro, Brazil, using a market-based price formula.

Sources say, Germany's ThyssenKrupp (TKAG. DE) has agreed to compensate buyers of its U. S. steel plant for any underperformance in the next few years to seal a long-awaited deal to be outlined.

ThyssenKrupp has been trying for some time now to locate a buyer for its Steel Americas unit - comprised of the U. S. plant and steel slab mill CSA in Brazil - which has drained billions from the company for the past few years.

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