ArcelorMittal is selling LaPlace and Vinton steel plants in US
World’s largest steel producer ArcelorMittal (NYSE:MT) is selling two of its facilities in the US to an affiliate of the asset management firm Black Diamond Capital Management for an undisclosed sum.
The deal includes offloading the Lousiana-based LaPlace steel facility, along with a rolling mill in Tennessee, which produces long steel products such as beams, angles, flats, channels and billets.
It also includes the Vinton facility, located in El Paso, Texas which produces rebar and grinding media, also long steel products.
The deal should help the steel maker reduce debt, which stood at almost $16 billion for the quarter ended Dec. 2015.
The transaction, subject to certain conditions and forecast to close in April, aims to help the Luxembourg-based steel maker to reduce its debt that stood at almost $16 billion for the quarter ended December 2015.
Amid the sustained commodities rout that has hit the global mining industry in the past year, ArcelorMittal reported a $7.9bn net loss for 2015 last month after recording large write-downs on its iron ore mining and steelmaking businesses.
Shares in the company have dropped more than 50% since January last year, when a global glut began making steel cheaper than at any other point in the past decade.
The price slump has weighed heavily on earnings at most major producers, including US Steel and Posco of South Korea. In the UK, the situation has triggered an existential crisis in the industry that has claimed thousands of jobs and cast doubt over its future.