Linz-based steel group voestalpine is selling its pig iron plants in Texas. 80 percent of the direct reduction plant for the production of sponge iron (hot briquetted iron, HBI) in Corpus Christi will go to European steel giant ArcelorMittal for 610 million euros, the Upper Austrian company announced on Thursday morning. Voest keeps 20 percent.
Part of voestalpine’s continued participation is a long-term agreement to secure 420,000 tons of HBI produced in Corpus Christi. This is the basis for further decarbonisation of steel production in Linz and Donawitz (“greentec steel”).
“In addition, the collaboration reduces the spot market risk for the quantities that voestalpine does not need,” said voestalpine. The production capacity of the HBI plant is about two million tons per year. The transaction is expected to close within two to three months.
Source: Krone
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