Arcelor Mittal said Wednesday that it will sell its Travi e Profilati di Pallanzeno and San Zeno Acciai to Duferco for $154.3 million, as part of the commitment that it made to the European Commission during the merger of Arcelor S.A. and Mittal Steel N.V.
Travi e Profilati di Pallanzeno (TPP) is a rolling mill near the Lago Maggiore in Northern Italy. TPP has about 180 employees and produces light and medium sections up to 300mm for the construction industry, wide flats and angels for the construction industry, and track shoes and cutting edges for tractors and earthmovers.
Due to competition concerns with the Arcelor and Mittal merger, the company agreed to divest three European medium/heavy section mills: Stahlwerk ThĂĽringen (Italy), TPP (Italy) and the section and bar mill Huta Bankowa (Poland).
Arcelor Mittal will also sell its 49.9 percent stake in the San Zeno Acciai (SZA) steel plant to Duferco. SZA is an electric steel making plant that recycles steel scrap to make semi-finished steel products.
The transaction is expected to close in early 2007.
Duferco, a steel trading, distribution and production company, had sales of $7.7 trillion in 2005 and produced over five million tons of steel.